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Originally Posted by trndobrd
That would explain why the last salesman I dealt with looked physically ill when I announced, after 3 hours of haggling over the price, that "these finance charges look too high, I think I'll just write you a check instead of financing."
Unfortunately, that deal never happened because they tacked on a $150 "title acquisition fee". In KS the state charges $10 for a 30 day tag and nothing for title transfer. The best excuse they could come up with was "well, that's just a fee we charge all our customers. $150 seems like a pretty small amount to break a $9000 deal."
"Yep." I said as I walked out.
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Awww yes, I didn't even go into the interest rate itself. Unless it is some kind of a special deal from the manufacturer (Make sure it really is and someone isn't feeding you full of crap) a lot of the time the dealerships will tack on and extra point or two of interest. I have seen deals where they have tacked on more than that and totally raped the customer. How it works is they have it worked out with the financial institutions in advance. If the dealership gets their money at say 10%, they can charge the customer whatever they want, 11%, 5%, 18% and get a kickback from the bank on the extra points. Thay can make HUGE money doing that. That's why i
n ALL cases,
it's wise to check with your own bank before accepting the dealers financing terms.
The title fee, or the documentation fee as some dealers call it. trndord is right, it's just one more way for the dealer to sweeten the deal and in return, the customer takes the beating.
On average, it takes 10 minutes to do the title work. $150 for ten minutes? Wow, that's laughable at best, and total rip. A Doc fee is just another "pack" or in other words, another dealer ad on to increase profit of the deal.