11 FAKE FEES: DO NOT PAY at Car Dealerships - by AUTO Expert: Kevin Hunter 2020

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you shouldn't pay at a car dealership Hi, I'm Kevin Hunter. I've spent enough time in the car business to help you know what to do and what to avoid at a car dealership. You see, he was a great salesman, but he couldn't. I can't stand the nonsense expected of me and I know a lot of people in the business who share this opinion, but my last dealership ultimately fired me twice in the same week, which is pretty cool for helping my customers get a fair deal and honest in his dealership, the owner. He said my managers didn't know how to treat their customers what he was really saying is that his car managers didn't know how to deal with people who could see through the nonsense and expected honest treatment on the car anyway.

I took that experience as a positive step forward and because I still wanted to help car buyers like you, even if it no longer had anything to do with the car business, I posted videos to help people here we are years later. I now receive 12,000 messages a year and comments from car buyers across the country, what you are about to hear about dealer

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comes from personal experience and daily testimony from real car buyers like you, let's start with the first two rules, never say you plan to pay cash for your car until after you have negotiated every aspect of your car contract and have it all in writing and are sitting on finances, if you still don't know why that's important ask me at the comments section below number two, don't ask for anything the fees we're going to talk about will be removed from your car contract until just before you're ready to sign now there are three very important things you need to know about these fees before to start number one the only legitimate fees you have to pay our taxes license fee title that's all finance officers number two write thousands of car offers every year you only do this once when you finally take a seat in finance you're sitting in front to the desk of the highest paid salesman in the world the entire dealership he or she is a master at packaging a car deal full of additional costs, fees, products and they work for the dealership not you no matter what they say this is not Allstate and you are not in good hands, no matter what they say.

Before this, and as car buyers across the country tell me, finance managers are also very adept at making you feel stupid for saying no number three, the finance office is the number one profit producing department. one in the entire dealership, finance surpasses the parts sales and service department, this is not a chump change, we will be talking about a rookie finance officer, we will take $1,500 from him, an average one will take $2,200, an experienced one will take $ 3500, two or more and I've seen a completely slimy finance guy. takes $7,000 from an old couple in finance who never saw it coming and then this guy and his salespeople were praised by the dealership owner at the Saturday morning sales meeting, yeah that's the level of character of some from the dealers now, I hope you have relented.

Get up and be ready to take notes because if you get the financials wrong you're screwed, let's apply dealer prep fee number one, don't pay anything that looks or sounds like a dealer prep fee. Here's why inside the dealership they have what it is. Known as a lot package, it's the money you spend on washing, waxing, vacuuming, doing some basic maintenance, detailing your car, and putting gas in it. Have you ever wondered why dealers pay such a low price for the car they accept in the trade? It's pretty simple, they consider the price they paid to trade in the vehicle added to what they called this dealer lot package that ranges from a thousand to $2,500 and then they set that as the new wholesale price that they own the vehicle for and then Add your profit margin, so if you allow them to put a dealer prep fee on your car deal it will allow them to charge you twice for the same thing, don't pay dealer prep fees, it's already in the cost of the car they don't pay for.

I want you to be suspicious, so luckily they make you a much smaller amount, but I just saved you up to four hundred dollars, number two, in advertising fees. This could come in the form of a regional advertising fee, a cooperative advertising fee, or a distributor advertising fee. and will range between 100 and 400 dollars. Can you imagine standing in line at a store and the cashier says it's all the fee we charge for advertising our products? Also, are you kidding? You would roll on the floor and laugh. but still, unsuspecting people get stuck with an advertising fee in the car business, just say no thanks, we just saved you another, okay, number three, an ATM fee or a markup additional from the dealer.

This is pretty cheeky, are you kidding me? What exactly do you think this is? If you guessed it was just a profit increase on your car deal, you'd be right, this is just a slap in the face to a customer now that we negotiated the car deal, here's our ADM rate. Yeah, sure, tell them to take a hike. How much will it cost? will be fine, it depends on how you are received by the dealer and how good you are at saying no, between 250 and a thousand dollars for delivery or destination fee for you, there is only one example, while the destination fee is legit and He'll find it.

It's clearly listed on the Mulroney sticker or the MSRP sticker, however you think of it, that you'll find on the window of a new car and it's already included in the suggested retail price of the vehicle, you'll see it right above. The final price, dealers know that consumers don't know much about this, so many dealers start adding delivery fees or destination fees to all of their cars. Well, now you know better and I just saved you between seven hundred and a thousand dollars. Number five nitrogen rate car dealers are always coming up with something new and nitrogen is just one of the latest best, they claim your car drives better, improves gas mileage, whatever false claims they can come up with and then They impose between two hundred and four hundred dollars.

First, you don't need this. Secondly, you need to see how much nitrogen is in the air around us, like 78%. You know that? So the dealer supposedly pumped out the remaining portion of non-nitrogen air and raised it to 100.% and now you have a rocket car with nitrogen tires. I don't believe it. Say no to nitrogen. Two hundred to four hundred dollars saves number six. Life insurance. Disability insurance. Credit protection insurance. your insurance rep, if it sounds like insurance, just say no, five hundred or a thousand dollars saved, depending on how many of these policies you might have fallen into number seven vehicle upgrade packages, the dealer's investment in these items is ridiculously low, like stripes or fenders, but you'd think they updated their car to maximize its resale or something;

In most cases, they spent fifteen to thirty dollars on the package they are trying to offer you for two to five hundred dollars if they claim it is already in the car. Get ready to get out of your chair and go help them deduct two to five hundred dollars saved now. If you thought this was bad until now, these latest rates are high and are bad or worse than anything I've mentioned, so please. pay attention and take some good notes number eight theft protection my id has been bitten engraved whatever they call it some dealers get ridiculous about this for example i recently had contacts with a car buyer from california they bought a car that was worth three thousand dollars in this type of fees Gardena Honda hit the poor guy with 495 for last night's theft 1495 for theft patrol and $9.99 for pursuit can you believe this?

This was like a nightmare straight out of a bad cop show, all thanks to the Honda dealer in Gardena, California, anything that looks or sounds like numbers etched into the windows of your car claiming to be some kind of theft protection system , it's all rubbish, just say no if there's a note of doubt in the back of your mind and you think you need this, you already know, because the finance manager forced you. feel stupid for saying no it's just a simple $15 engraving kit that you can buy yourself go get it and put it on yourself on average 500 thousand dollars saved Document fee number 9 this is the fee you pay for an employee From the dealer register the sale of your vehicle with state licensing offices wherever you live, a small fee is reasonable, but document fees are widely abused.

Let me start by sharing with you that some states limit

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to between $50 and $75 for document fees, while other states allow them to charge you the moon. and vice versa and they do a couple quick examples of the lowest states California $55 Oregon 61 dollars SOTA $75 here is a summary of the document fees in several states, some reach a thousand dollars but like Minnesota at $75 for exactly the same as charge the dealer $75 is a considerable profit from the minimum work they do for this, never pay more than 75 dollars and if they claim they have to collect it because there is a state law that says they really have to scam everyone with words the same way , Get up.

Go out and get your salespeople and negotiate the overage fee directly with the most expensive car, it's nothing more than a profit pattern in Minnesota where dealers charge $75 for a document fee, the dealer will still pocket a hundred and fifty thousand dollars per year in profits after paying. the staff who provide them with this data, by far this is the most commonly inflated fee and is severely abused by car dealers across the country, depending on where you live, they saved nine hundred dollars on the number 10 processing fee or The e-filing fee, believe it or not, this is not exactly the same as a document field, however, since many states have passed document fee laws, slug distributors simply create fees from another category with another name and it is exactly the same.

Take Ellen Russo, for example, who sent a car buyer in Florida. I got copies of the contract for your Nissan car four for one from the south in Royal Palm Beach the contract clearly showed two types of document fees 279 for a filing fee 899 for a febo document exactly the same and both a big scam if that were Not enough, yes, they insulted him and charged him $105 for a Hope scholarship and didn't even mention to poor Helen that he too was an unwilling participant in the goodwill of their community. You see it when merchants like to show the public that they are By doing these community goodwill things, they steal this money from poor guys like Allied to put into this fund and then say they are doing good things for the public.

If Allen had talked to us first, they would have saved twelve hundred and eight dollars number eleven. gap insurance all the dealers will be furious because I mentioned this precious product dealer gap insurance another easily abused expense could be $1,000 or more let me explain what it is and why they say you need it gap insurance covers the gap between What is your car worth and what is your loan balance now, how can you get to this financially irresponsible place and why you might need it. The dealer won't tell you that he needs a gap because he's stupid and fell for a bad car deal, but that's what gap insurance means.

It implies that if you knew anything about your finances you wouldn't have agreed to a no money down deal, no one should make those deals and you would never be looking at 84 months of financing. Are you serious? That's what they call stupid. You wouldn't be. By trying to renew a deal that has a huge negative value because you like to repeat these bad car buying decisions, you wouldn't be doing any of that, your loan will be huge and in three to five years it will still be much higher. than the value of your car and if you get it, a choice is ruined with a large loan balance, your car is gone, you still owe thousands of dollars, so you know what a stupid person can do, you can pay a thousand dollars for a policy that already has an overinflated loan, you are adding insult to injury, so here is what you can do to correct your mistake plan to make a planned 20% down payment and never finance more than 36 to 48 months on your Vehicles If you are financing more than you can't afford the car you are trying to buy, it is a rapidly depreciating asset, any extended term and no down payment deals willThey will hurt you financially and leave you having to pay $1,000 for a ridiculously expensive gap policy.

Did I make you feel embarrassed? of yourself, hopefully, I saved you thousands of dollars too. Be sure to subscribe below for more content like this. Press the notification bell. Give us a like to thank us for all the money we saved you. Share this with your friends on social media and leave a comment. In the comments section below, help other car buyers like you find these bad rates and avoid them. I'm Kevin Hunter, until next time, take care.