Why do dealers charge ‘Dealer Fees’?
So, what exactly are Dealer Fees?
Dealers are allowed to charge fees that are supposed to offset the cost of preparing paperwork, preparing the vehicle for delivery, storing the paperwork, and so on. The truth is that it is another way dealerships make money. In some states, these types of fees are actually illegal! Dealers use many names for these fees such as Document Fee, Admin Fee, Prep Charge, Dealer Fee, Delivery Fee, and so on.
Since some dealers charge as much as $1,000 or more in these various dealer fees, the lowest price on a vehicle may not mean that it will cost you less. That is why we offer a detailed, total price (some call it an ‘out the door’ price) so you can see exactly what it costs to purchase our vehicle. And to make sure you are getting the best deal, we encourage you do the same when price shopping. You really don’t want to find out about these fees after you’ve purchased!
How can you be sure you are getting the best deal? Ask for a Buyers Order or Bill of Sale BEFORE you agree to purchase the vehicle. That will show all the costs associated with the purchase. If the dealership hesitates or even refuses to provide one for you, it could be because they have a fee or fees that they want to hide. Some people feel that these fees excessive or underhanded. The bottom line is this: Check ALL fees before you sign paperwork to buy the vehicle.
At Wells Motor Company, you can be assured that all you pay is sales tax, title fee, and tag on top of the price we agree to. And that’s it. No surprises! Isn’t that the way it should be?
After over 82 years of doing business, we’ve never charged a dealer fee …. and we never will!