Darn car salespeople.....

[Turbys_1700]

I just purchased two used vehicles this year. Really an abnormality for me since I typically keep vehicles 10 years. Both were purchased from established used car dealers in the area. One was a higher mileage used Ford Contour on the cheap. Dealer was up front and honest with me. Car was a one owner. He typically buys used from wholesale auctions and then performs maintenance like brakes, hoses, ETC... One thing that I really liked about it was the purchase price was the purchase price. No add on doc or title fees. That kills the deal for me. I understand that dealerships have to make a profit but it burns me up that they advertise a price on a vehicle and then in the fine print state a $500 or $600 administrative fee. Just be up front with the cost.

I also sold my camper and diesel dually this summer and needed a truck. Found a really nice 07 Silverado wholesale. Again, this used car dealer did not charge any administrative or add on fees. That is the way I like to do business.

 

[Travelover]

............ One thing that I really liked about it was the purchase price was the purchase price. No add on doc or title fees. That kills the deal for me. I understand that dealerships have to make a profit but it burns me up that they advertise a price on a vehicle and then in the fine print state a $500 or $600 administrative fee. Just be up front with the cost..................

I agree. When I was shopping for a car I just added the doc fee to the quoted price. And indeed in Michigan, that is how it is taxed- as part of the cost of the car, not as a service which would be untaxed.

 

[two_bit_score]

I just purchased two used vehicles this year. Really an abnormality for me since I typically keep vehicles 10 years. Both were purchased from established used car dealers in the area. One was a higher mileage used Ford Contour on the cheap. Dealer was up front and honest with me. Car was a one owner. He typically buys used from wholesale auctions and then performs maintenance like brakes, hoses, ETC... One thing that I really liked about it was the purchase price was the purchase price. No add on doc or title fees. That kills the deal for me. I understand that dealerships have to make a profit but it burns me up that they advertise a price on a vehicle and then in the fine print state a $500 or $600 administrative fee. Just be up front with the cost.

I also sold my camper and diesel dually this summer and needed a truck. Found a really nice 07 Silverado wholesale. Again, this used car dealer did not charge any administrative or add on fees. That is the way I like to do business.

I agree. When I was shopping for a car I just added the doc fee to the quoted price. And indeed in Michigan, that is how it is taxed- as part of the cost of the car, not as a service which would be untaxed.

Travelover, So you're ok paying tax on an additional $5-600 when if it was separate you would save the tax on that amount?

.

 

[two_bit_score]

I just purchased two used vehicles this year. Really an abnormality for me since I typically keep vehicles 10 years. Both were purchased from established used car dealers in the area. One was a higher mileage used Ford Contour on the cheap. Dealer was up front and honest with me. Car was a one owner. He typically buys used from wholesale auctions and then performs maintenance like brakes, hoses, ETC... One thing that I really liked about it was the purchase price was the purchase price. No add on doc or title fees. That kills the deal for me. I understand that dealerships have to make a profit but it burns me up that they advertise a price on a vehicle and then in the fine print state a $500 or $600 administrative fee. Just be up front with the cost.

I also sold my camper and diesel dually this summer and needed a truck. Found a really nice 07 Silverado wholesale. Again, this used car dealer did not charge any administrative or add on fees. That is the way I like to do business.

I agree. When I was shopping for a car I just added the doc fee to the quoted price. And indeed in Michigan, that is how it is taxed- as part of the cost of the car, not as a service which would be untaxed.

Travelover, So you're ok paying tax on an additional $5-600 when if it was separate you would save the tax on that amount?

.

 

[Travelover]

Travelover, So you're ok paying tax on an additional $5-600 when if it was separate you would save the tax on that amount?

.

I think I was unclear. The doc fee is a separate line item, but the state considers it part of the sales price and taxes it. In my case it was $190 with a tax on it of $11.40.

The combining was done in my head because my only concern was the out the door price, regardless of how it was broken out.

 

[two_bit_score]

I think I was unclear. The doc fee is a separate line item, but the state considers it part of the sales price and taxes it. In my case it was $190 with a tax on it of $11.40.

The combining was done in my head because my only concern was the out the door price, regardless of how it was broken out.

OK. I see your point. But is Michigan in so much financial trouble as a state that they have to tax you on an admin fee?

 

[JDgreen227]

OK. I see your point. But is Michigan in so much financial trouble as a state that they have to tax you on an admin fee?

Oh, yes.....Michigan has one of the worst economies of any state....they will (bleep) over everybody to get tax revenue out of them. When Slick Rick the P-Rick began taxing pensions in able to give his cronies business tax breaks, a LOT of seniors began leaving the state. And his tax breaks which were touted to increase employment have produced NO new jobs.

 

[Travelover]

OK. I see your point. But is Michigan in so much financial trouble as a state that they have to tax you on an admin fee?

I don't know the reasoning for taxing the document fee. In my mind, it is simply a tool for the dealer to claw back some profit and therefore actually just part of the purchase price.

 

[JDgreen227]

I don't know the reasoning for taxing the document fee. In my mind, it is simply a tool for the dealer to claw back some profit and therefore actually just part of the purchase price.

Just wanted everybody here to know that the so-called "document preparation fee" is a huge ripoff. Back in Y2K when I purchased a new GMC, the purchase order included a $40 document preparation fee, although GM employee purchases (GMS and GMO) specifically stated such fees were not permitted. I wrote to the dealership afterwards asking them to tell me what the $40 fee was for, and THEY REPLIED IN WRITING IT WAS FOR DOCUMENT PREPARATION. BINGO....I sent a letter to both the GM regional and national offices with a copy of both letters, and the dealership manager and business manager were both fired. I always wondered how many GM employee purchasers were bilked out of the document preparation fee. I am quite certain the money was siphoned off somewhere. Read about a year later that a class action suit had been filed against the dealership for improperly charging the fee, and they went out of business. GOOD !!!!!!!

To charge a fee to prepare documents is a GIGANTIC RIPOFF....

 

[ultrarunner]

The only thing that matters is the out the door cost...