We're looking to buy a new used car for my wife. It's been a few years since I've bought a car. I searched on sites like Autotrader and cars.com and found a few potential vehicles. I was surprised at the dealer's when he tried to tack on something they call a dealer fee ranging from $500 to $1000 on top of the advertised price. Naturally I felt cheated and walked out. After this happened a couple of more times I looked up this dealer fee online and it turns out to be a scam just like I thought.
The way I see it's their car and they can ask whatever they want for it, and justify the price however they want. It's my choice to take it or leave it. The problem is when they purposely advertise a lower price to get the customer in the door, and then try to add on a dealer fee, more money in my pocket fee, or whatever name they want to give it to increase the sale price. Trying to pass it off on the same breath as sales tax and registration fee, so to the inexperienced buyer it appears like something official. The dealer made me waste my time to travel and see the car by misrepresenting the price, because he was dishonest I will not do business with him.
Now when I find a car I'm interested in, I call first and ask "are you going to tack onto the advertised price some undisclosed fees?" If the dealer fee comes up I hang up. I will never buy a car from a dealer that tries to pull this off. If there are any car dealer members here you may not like what I'm saying, and may have some good (to you) reasons why the dealer fee is a legitimate business practice. In response I say to you that you would get more business from customers like me being honest with the advertised price. As if there aren't enough other complications figuring out the right car choice. It amazes me how this dealer fee gig seems to work for cars only. You'll never see such a thing when you go buy a sofa or a stereo. I don't think I'd have a business if I were to advertise spearfishing gear at one price, then at checkout add a "diving fee".
I'm curious if this phenomenon is also prevalent in states other than Florida?