Extra fees for financing added to the quoted price

[paulfun9]

Any time a fee gets added on after price is negotiated you can bet it’s a bogus charge. I have simply walked each and every time!
To date only one place had not called me afterwards to try and justify the charge, or to simply “waive” the fee. They use the word waive but I assure you that should be interpreted as “we won’t steel this amount from you because you won’t let us”. Any business that doesn’t have the total cost built into the price is simply ripping off anyone willing to let them.

 

[polarred21]

ALWAYS ask for the out the door price before you decide to buy. There will always be fees.....

 

[finn1]

On new car purchases the transportation charges are clearly stated on the monrovy sticker.

I did not advocate adding charges after a quote. I am pointing out that the transportation cost exists, which some here obviously doubt.

 

[RickB]

On new car purchases the transportation charges are clearly stated on the monrovy sticker.

This is not the car business. Comparisons get made all the time by guys with automotive experience that think the equipment industry works the same way.

 

[rScotty]

I always figured that the tractor or implement that is sitting on the lot was for sale for whatever the dealer could get for it. Both he and I are free to accept or reject any offers until we come to a deal....or not. Then we shake hands and that is the price. Simple as that. Tax might be added, but nothing else. I always offer to pay cash at that point; figuring it's up to me to figure out where to borrow it. If the dealer wants to carry the credit himself that's probably going to be a separate transaction.

Now if I was to walk into the dealership and want him to order a tractor rigged out to my specifications, I would expect that to also be yet another different type of transaction. And that is one I expect to have to watch very closely.
To make sure there is not doubt about the deal, everytime we get done with a quote I make sure we both write it down and include everything.

But I didn't start out dealing in such a straightforwand and simple way. I came along with gray hair, wrinkles, and a lifetime of mistakes.

I will say that as I got older those additional fees didn't show up on the bill as often. Either the seller figured the extra money wasn't worth the hassle they were sure to get from an older and wiser guy.....or else maybe they figured out to hide those charges in some new and more creative way.
rScotty

 

[TCowner]

I agree with many of the respondents here. If the fees are made clear up front then I have a chance to compare to the dealerships that are not adding them. It always come back to the "Price out the door". But when they add it at the end of the transaction then for me the answer is clear, remove it or sell it some one else. If we all did this, this would stop. Look, I understand that clerical staff have to be paid and that perhaps that there may be charges for low rate financing that are charged back to the dealer. But just be up front about is all I ask. In order to get 0% financing there is a $400 "fee" then just let me know that.

The car sales guy were notorious for this decades ago and has gotten better. But the sales people still "pass you off" to the finance people and that when the shenanigans commence. They still want you to sit in their office for 30 minutes listening to the need to add every extended warranty/service protection/paint protection/stain protection program the exists. And you have to pay for documentation fees which I guess is what is supposed to pay the clerical staff processing the paper work. So be it, but if every vehicle gets $85 added for documentation fees then it seems to me that should be added up front.

Imagine if everything we purchased involved this sales technique. You buy a shirt and its marked down to $12 but then find a fifty cent "fee" added for the cost of the cashier to process the sale. You could argue that the needs to paid and the purchaser has to pay it. Paying employees for the work they do is the cost of doing business. Just add it to the front of the sale. It just seems so simple.

 

[rScotty]

SNIP

But just be up front about is all I ask. In order to get 0% financing (if) there is a $400 "fee" then just let me know that.

SNIP

There is no additional fee for Kubota's 0% financing.
When we bought our Kubota, my Kubota explained why it made no difference in the price whether he was paid in cash or with Kubota's 0% financing.
rScotty

 

[mangler]

There is no additional fee for Kubota's 0% financing.
When we bought our Kubota, my Kubota explained why it made no difference in the price whether he was paid in cash or with Kubota's 0% financing.
rScotty

That is very unusual. Although they can't upcharge for the 0% financing, they usually have a "cash rebate" for cash purchases, which really amounts to the same thing. Basically 0% financing has a cost, and it is usually reflected (at least partially) with the cash rebate that is offered if you select cash/personal/regular rate financing. In my case it was either 0% financing or $3050 cash back. Although to be fair the cash price did not show a difference equal to the cash back offer (more like $2200). Add the $454 bogus fees, and you get $2654, which is basically the cost of going with the 0% offer. For me that gives a real interest rate of 1.5%, which I can't match anywhere. Even if they gave me the full credit for cash purchase, that would bring the real interest rate/cost of borrowing at 1.95%, which I still can't match anywhere. And even after tax you should be able to do better than 2% growth with the money you are not laying down...

If the dealer will not give you a cash back offer for cash payment when there is a 0% offer in place, then they are really hosing the cash buyers. It also makes no sense at all to buy with cash at this point.

 

[rademamj1]

I just purchased a Kubota GR2120 this week, and the dealer also applied a registration fee of $10 to the purchase.
Though it was not an issue, my wife asked what that was for, and dealer replied it was a charge by the dealer or finance company, to cover the time (30mins) required to fill out the paperwork. Some dealers or finance companies sadly increase this registration fee to unbelievably large numbers. Request a reasonable registration fee, or walk away from the deal.

Kubota, does not use any 3rd party financing company, as it is the Kubota corporation itself that is the funding company, and their primary interest is only in making the sale. However, Kubota does require an insurance policy, just in case the purchased item is stolen during the payment period. Interestingly, I originally was going to pay cash and purchase price was kubota list price minus 12% cash discount.

 

[rScotty]

That is very unusual. Although they can't upcharge for the 0% financing, they usually have a "cash rebate" for cash purchases, which really amounts to the same thing. Basically 0% financing has a cost, and it is usually reflected (at least partially) with the cash rebate that is offered if you select cash/personal/regular rate financing. In my case it was either 0% financing or $3050 cash back. Although to be fair the cash price did not show a difference equal to the cash back offer (more like $2200). Add the $454 bogus fees, and you get $2654, which is basically the cost of going with the 0% offer. For me that gives a real interest rate of 1.5%, which I can't match anywhere. Even if they gave me the full credit for cash purchase, that would bring the real interest rate/cost of borrowing at 1.95%, which I still can't match anywhere. And even after tax you should be able to do better than 2% growth with the money you are not laying down...

If the dealer will not give you a cash back offer for cash payment when there is a 0% offer in place, then they are really hosing the cash buyers. It also makes no sense at all to buy with cash at this point.

Nicely said, and well calculated. And in fact how you explain it is exactly what I thought when I started negotiating to buy the tractor. But like a lot of things that sound perfectly reasonable, that just isn't how it worked at the Kubota dealer. It was simpler & works like this: We negotiate & arrive at a total price. The only extra is tax.
There are no discounts and no add-ons. We are negotiating cash price.
One we agree, I then have a choice of either paying cash or taking 0% 5 yr. financing. It makes no difference to the dealer whether I pay him cash or he sends the sales receipt to Kubota and they send him cash the same day.
I wouldn't be surprised if other brands and other dealerships differ.
rScotty