Go to a brand-new vehicle supplier’s with the sincere intent to buy a brand-new vehicle, and you get struck with a virtual hurricane of lingo of all the different types of costs they plan to charge you. Who really knows what those things mean? You do, if you look at the rest of this content. Let us start with the A’s. The Additional Dealer Markup is a ridiculous made-up fee the brand-new vehicle supplier dreams up only for you. It will be right there on the MSRP sticker, called ADM. Make sure that you completely knock the Additional Dealer Markup all the way down.
How about the supplier floorpan support fee? That is a ridiculous thing to charge too. This is different with used cars. That is what they have to pay to their lenders for all the stocks of autos that they keep. Usually, they pay roughly $100 per month in interest for every vehicle on the lot. They want you to pay it for them. The thing is, the vehicle factory generally assists dealers with it. But they’ll just go around and collect it all over again from you as well. Is not that convenient? If the vehicle has been sitting there on their lot for a few months, they’ll have been paid that amount three times from the vehicle manufacturing facility. But they still would like you to pay for it. It is a total insult to your intellect, and you want zero part of it.
How about the supplier prep charge? That is the fee that the supplier collects from you to ready the vehicle for sale – they take the plastic off of the seats, do any surface cleaning which needs to be done, put on one coat of wax on and inspect the fluids. This is from time to time the case for used cars, as well. The used cars situation varies from dealership to dealership. For this, they would like you to pay five hundred dollars. What can it take them, an hour to finish the task? How could they in good conscience charge five hundred dollars an hour for such a job?
Another weird fee they love collecting from you is the Drive Off Deposit. That is just a totally made up fee that the brand-new vehicle supplier collects from you to attempt to balance out the rebate that they may have given you. It is just stealing, plain and simple, and you do not want them to do that to you.
And ultimately, the Factory Holdback is something you want to watch out for. The factory holds back 2% or 3% of the price of a vehicle from the supplier until they actually sell it. Once the vehicle is sold, they’ll give supplier the their money back. What sellers do is, they attempt to double charge it – once from the vehicle company, and once from you. If you spy this on your invoice, ask to have it removed or threaten to walk out. It is well worth the hassle to show some backbone.
