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Understanding doc fee

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Old 11-15-2018, 07:32 PM
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Understanding doc fee

I will never understand this fee. My dealer is charging $699 which I think is high. It’s basically dealer profit.

What I don't understand is why taxes are charged on the Doc fee?
 
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Old 11-15-2018, 08:32 PM
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Originally Posted by lovingit
I will never understand this fee. My dealer is charging $699 which I think is high. It’s basically dealer profit.

What I don't understand is why taxes are charged on the Doc fee?

$699 for an Aston dealer or any other high end dealer, shouldn't be a surprise. Chevy and Honda dealers do the same. I have seen 399 up to 750. $650 is pretty normal. Its one of those things that will never change, dealer will never negotiate over, and your stuck paying it.

Save your stress over it for something lets say important. (its only not important because there is nothing you can do).

Make the dealer lower his price by $750, and then number wise your ahead. Taxes, well come live in Virginia, and then you will really really not like them.
 
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Old 11-15-2018, 09:16 PM
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Many years ago I worked at a car dealership. The way we explained it, it was to cover the handling of the paperwork to get the car registered with the DMV. Basically doing the leg work for title and plates with your state. New cars don’t come with a state title. They come with a manufacturers certificate of origin which then ultimately gets turned into the title. The fee covers the administrative costs of dealing with the state and making sure you don’t have problems.

But I agree it’s another way to boost profit on a sale.
 
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Old 11-15-2018, 09:30 PM
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If it’s a “service” why does it get taxed? Only the car should get taxed. In the end, it’s not that much but I’m trying to understand why it’s taxed.
 
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Old 11-15-2018, 09:57 PM
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Originally Posted by mjanis
Many years ago I worked at a car dealership. The way we explained it, it was to cover the handling of the paperwork to get the car registered with the DMV. Basically doing the leg work for title and plates with your state. New cars don’t come with a state title. They come with a manufacturers certificate of origin which then ultimately gets turned into the title. The fee covers the administrative costs of dealing with the state and making sure you don’t have problems.

But I agree it’s another way to boost profit on a sale.
What does that take, 15 minutes? $2800/hr is pretty impressive.
 
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Old 11-15-2018, 10:25 PM
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Originally Posted by lovingit
If it’s a “service” why does it get taxed? Only the car should get taxed. In the end, it’s not that much but I’m trying to understand why it’s taxed.
I think it is different state by state. Some states don’t have a sales tax. It could be that they have turned a service into a product line item on the invoice.
 
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Old 11-16-2018, 04:25 AM
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Old 11-16-2018, 10:56 AM
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Negotiate on out-the-door price. If they want to add in documentation fees it doesn't matter to you. Tell them you want to pay $xxxxx including any and all fees. They won't like it, but that's they way around it. And if you aren't willing to walk when they try to add on the doc fee then you might as well just pay it.
 
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Old 11-16-2018, 12:38 PM
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Some of my friends own new car deale ships.
The "doc fee" is pure profit!
 
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