From my other thread, some of you already know we're picking up a CPO 997 at Momentum Houston next week. My wife received documents to sign via Fedex, and we noticed some fees that we may hope you guys can help clarify. From their website, it says that out of state buyers pay a dealer service fee of $497 and a dealer inventory tax (or vehicle inventory tax of 0.21030).
what are those anyway? On the document she signed, it says the dealer inventory tax is optional... sounds kinda skechy that it is added...
And the required dealer service fee --> what is it? I know it supposedly *includes* enviro guard, which is some sort of paint/upholstery touch up for 2 years, but I'm in CA, and the dealership's in Houston... Any enlightenment would be appreciated!

Alan

 

Most dealerships have a dealer preparation fee .It's an overpriced means to pay for the labor involved with the paperwork and prep of the car. It can vary in price and i even once had a BMW dealership tell me that it was mandatory otherwise they would be subject to class action suit (by all those who paid it) . I called BS and didn't buy the car from them .

I do know of one Honda dealership who does NOT charge a fee but every other car dealership I know DOES.

As for the "dealer inventory tax" --I have never heard of that.

 

dealer fee is just pure bs and profit to the dealer. You will see it at most dealerships but not all. they'll usually be very clever and print it directly onto the invoice sheet and say they can't change it. i always argue and just make them take it off the negotiated price or cross it out. dealer is already making money by selling the car.

 

Agreed. BS. I walk away from deals w/ these fees (missed out on a pretty sweet '07 GT3 over $300 doc fee) -- there's a thread buried around here regarding that.

To each is own. I have no problem paying bumperplugs $500ish for a painted rear center console and don't think twice about being able to have it painted for half at a local shop.

People draw lines in different places for different reasons.

 

Those are junk fees. You can negotiate it, don't pay it.

 

+1 - Agreed. I always negotiate 'out the door' price so there's no surprises at the end.

One other note to check because you are out of state is wheather or not the dealer is charging you sales tax, or you will pay it to your state when you register the car. Living in GA and looking at cars in bordering states, I found different dealerships out-of-state will handle this differently. Doesn't really matter because you pay it one way or another, but if you're financing it may be nice to roll sales tax into it.

 

Enviro guard is just some long lasting wax and interior protection. A big profit center for the dealer.

 

Thanks for all the great replies, guys. This is our first time buying out of state, and so we were kinda unprepared on what to expect... the good news is, our sales advisor was able to subtract most of the dealer prep fee from the price of the car, so it came out even (*sorta*).

Also, when we come back, do we just register the car with DMV to pay the sales tax? they're not charging us tax in Texas, so I'm assuming once we register, we'll have to pay sales tax?

Alan

 

Yes. Just go to a local AAA that also does site check of the VIN -- bring the requested materials such as purchase agreement, insurance card, etc., and they do all the paperwork for you -- just write that lovely check.

 

And, call in advance to see if they also require a smog test. Although these are 50-state cars, CA still requires a smog test if a car is coming from out of state, even a brand new car. Just call AAA and ask whay you need to do to register the car.

Enjoy in good health.

 

Not only talking about Porsche, but all makes. Even with the way the economy is going, idiot dealers still pull this nonsense and then they wonder why so many of them go out of buisness.