Go to a new car supplier’s with the earnest intent to purchase a new vehicle, and you get hit with a virtual hurricane of lingo of all the different kinds of fees they plan to charge you. Who really knows what these things mean? You do, if you study the rest of this content. Let us begin with the A’s. The Additional Seller Markup is a ridiculous made-up fee the new vehicle seller dreams up only for you. It will be right there on the MSRP sticker, called ADM. Make sure that you absolutely knock the Additional Seller Markup all the way down.
How about the seller floorpan support fee? That is a silly thing to charge too. This is different with used cars. That is what they need to pay to their financers for all the stocks of cars that they keep. Normally, they pay approximately $100 a month in interest for every car on the lot. They would like you to pay it for them. The thing is, the car factory normally assists dealers with this. But they will just go around and collect it all over again from you too. Isn’t that convenient? If the car has been sitting there on their lot for three 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’s an absolute insult to your intellect, and you want zero part of it.
How about the seller prep charge? That’s the charge that the supplier collects from you to ready the car for sale – they take the plastic off the seats, do any surface cleaning that needs to be done, put on one wax coat on and inspect the fluids. This is occasionally the case for used cars, as well. The used cars circumstance varies from dealership to dealership. For this, they would like you to pay $500. What can it take them, an hour to finish the task? How can they in good conscience charge $500 per hour for such a job?
Another funny fee they like collecting from you is the Drive Off Deposit. That’s just a totally made up fee that the brand-new vehicle seller collects from you to attempt to balance out the rebate that they might have given you. It’s just thieving, plain and straightforward, and you do not want them to do this to you.
And finally, the Factory Holdback is one you wish to watch out for. The factory holds back 2% or 3% of the cost of a vehicle from the dealer til they actually sell it. Once the vehicle is sold, they will give supplier the their money back. What dealers do is, they try and double charge it – one time 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 exhibit some backbone.
For so many transactions you need to look closely to make sure you know everything you are being charged for. Buying cars, whether new or used cars is not different. Do some research to make sure you know what the legitimate charges should be before you sign any papers. For more info about buying cars click here: used cars