a friend is buying an used car from a subaru dealership

their verbal agreement of the final price was the sticker price + 12% tax

contract he signed says final price includes tax and fees but never said anything on what the fees are and how much.

now dealership is charging him $500 CAD of "documentation fee" on a $14000 CAD car

seems high

is this normal or is he being ripped off?

thanks

 

It is normal for dealerships to try & charge for doing required paperwork but I have never heard of a $500. charge. That is a ripoff, I would refuse to pay any doc fee in this economy

 

they dropped it to $295 CAD just now

 

I'd answer your question, but it'll cost you $199 as a processing fee.

Tell them to go pound sand.

 

Look on E-bay if the car is at a car dealer they will list a charge for Doc fee but it is usually $100-$200 at the most.

 

Yes doc fees are normal, but they're also generally negotiable and are 99% profit. IMO they should be disclosed by a dealer when negotiating a purchase price but often times they aren't.

 

$500 is high but the real rip off is the 12% tax!!!!!!!!!!!!!!!!!!!!!!!!!!!!

gotta say ouch up in CA

 

It could be negotiated down to zero I suppose ...

 

It's PST + GST

 

The doc fees are usually printed right on the form that's used with a new or used vehicle purchase.

12% tax is outrageous.

 

Yeah that way they can say "look, we're not ripping you off, it's normal for us to make this extra bit of undisclosed profit at the last minute unless you threaten to walk out from a deal you've already worked so hard on"

I even had a finance guy once tell me that it was ILLEGAL for them NOT to charge the doc fee because if they got rid of it for one person they'd have to REFUND every other customer's doc fee that they'd charged since the beginning of time. I told him "well, I guess you'll be discounting the purchase price of my vehicle another $350 then... I know that's not illegal".

 

These fees are for new jacks in the car buying game. I've never paid stankin doc fees ever!

 

The fee is another "tax" and as you can see its negotiable.

Right, b/c people that haven't bought cars for decades don't pay doc fees.......

 

On a form on a vehicle I bought once there was a breakdown of the Doc fees.
Say $40 Clerical,$25 runner etc.
I ask my salesman about the runner for the hell of it as I know what he's going to say.
He says the runner goes to Motor Vehicle to get your plates and registration.
I then say with only mine or with 10-20-30 other deals at one time.
The guys was at a loss for words.

 

^ lol.

I wouldn't be paying any extra fees to buy a car off a used car lot.

Furthermore, since I know what's going on with this particular instance, I would threaten to walk if they insisted on charging me. I don't think anyone else is going to snap up that car in the next day or two.