7 Car Dealership Rip Offs You Should NEVER Pay For!

hey everybody welcome back to whiteboard finance my name is Marco and I'm here to help you master your money and build your wealth today we're talking about seven car dealership ripoffs that you should never pay so in this video we're gonna talk about the seven different ones that are easily avoidable and I'm also gonna tell you at the end of the video when to negotiate these fees or services okay so you've done your research you found the car that you want you watch my last video and understand that you went in with your own financing got the best rate possible you negotiated your deal and boom there's a bunch of surprise upsells products and fees that they're gonna try and sell you in the back office and overall throughout the sales process so actually let's start this video with three fees or services that are non-negotiable and they're actually fair for the dealership because I want to start this video off with good faith and on a good leg so the first non-negotiable fee is the title and registration okay so if you've ever bought in a car before or registered a car before you know that you have to go through the state to be able to legally drive that car so state and local governments basically set these prices and the dealerships have no control over these costs so the dealer collects this money just like a retail transaction would charge you sales tax upfront and they do it on the state's behalf that's kind of what the dealer is doing here so these are usually referred to TTL which is taxed title and license and will usually cost you around eight to ten percent of the total price of the vehicle okay so that one's fair and again I want to start this video off on a fair note but trust me we'll get into the seven ones that you should never pay for so number two is the destination charge okay so the destination charge is actually mandated to be displayed on all the stickers by the federal government that's called the Mahoney sticker a kaid you know the sticker if you will so this basically covers the cost of transporting the new vehicle from the manufacturer or for the port fees if it's being imported from overseas like Germany or Japan and it's covering that destination charged to the dealer so this has to be even or the same for that particular model a countrywide just because they don't want dealers baking in different costs into the price of the car so dictated by federal law this is obviously non-negotiable number three and this is a smaller one that's usually never even negotiated or brought up but I feel like it's fair to mention is the inspection fee okay so each state has their own safety inspection fee and this basically means that the dealership has to go through inspect the vehicle and it has to pass these inspections otherwise it's not Road legal or sale legal so these only costs typically seven to fifty bucks maybe a hundred bucks and it's required by the state and the prices are set by the state so again you can't negotiate this directly so now that we've given this a fair playing ground let's get into the seven things that you should never pay for at a car dealership ah yes number one my favorite the doc fee okay so the doc fee aka the processing fee aka the paperwork fee a ka a we're just taking care of the girls in the back office so they can make a living fee that's not the case okay these range anywhere from eighty I actually can range from zero but typically what I see is eighty to seven hundred and ninety five dollars per dealership and this can include the DMV and registration fees that I mentioned earlier in this video so with that being said a lot of dealerships will take the position of hey we can't negotiate on these fees because it's state mandated it's including your registration and your license plate and all that stuff that's that is true however if you see an exorbitant number and you know for a fact that those things don't cost that much you need to ask this to be itemized on the bill of sale broken out line by line so you should only agree to pay the DMV and registration fee portion of those doc fees or processing fees and if they don't budge have them lower the price of the car okay that's kind of like going to a restaurant and before you sit down the table gets bust and that bussing fee is in corporate to your bill that's not going to happen in a million years anywhere so you shouldn't be paying for it here either number two is the delivery fee okay so this is different than a destination fee and this is where dealers try and double dip the delivery fee is separate it's another profit center for the dealership if they try and sneak this in here so there's only destination costs that we talked about earlier and that's why I prefaced the video with the non negotiable stuff so you know what I'm talking about now basically on that Mahoney sticker when everything is added up such as MSRP vehicle options plus destination charge that's it the car only incurs one destination charge ever so you should never see a delivery fee ever again unless you're buying a brand new car and that should not be broken out as a separate line item again even if it is a new car okay especially on used cars there's no such thing as a delivery or destination fee on used cars so if you see this on a bill of sale you need to have them remove it immediately or walk away because that's BS and there's also no such thing and these do not exist on new or used cars unless you're already talking about the sticker price for a new car okay let's go to number three advertising charges okay ad charges are BS okay every business incurs advertising charges the local restaurant down the street you know the cafe down the street the jewelry shop down the street everyone needs to advertise in business it's a cost of doing business they should not be passing that on to you as the customer so typically dealers will say when you see this on your bill of sale they'll say we had to pay hosting for our website we had to pay for our TV ads we had to pay for a newspaper ad yeah no no crap that's the cost of doing business so most advertising believe it or not is actually paid for by the manufacturer depending on how much volume that dealer is doing and what their franchise agreement ultimately is so if you see this on your bill of sale have them remove it immediately or walk away okay number four is theft deferral products okay these are hilarious because a lot of the time well I don't want to disparage this industry left deferral so there's some stuff that's legit you know there's some GPS tracking devices there's things like that that can actually help you recover your car I'm not talking about those I'm talking about the stuff like VIN etching or wheel locks this stuff it has so much markup in it it's not even funny I'm talking hundreds if not thousands of percent by the dealer so as I mentioned you have what we call vin itching okay so if you've never heard of vin itching this is basically where the dealership agrees to literally H the VIN number of the car which is the vehicle identification number into the windshield and also the windows of the car so they usually charge anywhere from like three to four hundred dollars to do this you can buy a kit literally on Amazon for like $20 or you can even take it to your local sheriff or even a local mechanic and they'll do this for either for free or much cheaper so no thief is gonna check the windows or the windshield if they're gonna steal your car they're you know they're either gonna bust that windshield or excuse me the window or they're gonna get into the car by bypassing the security and the locks and I'm gonna drive off and they're not gonna care the theory behind VIN etching is that if the thief goes to sell this car later it's gonna cost them a lot of money to replace each pane or each glass and the windshield which will ultimately lower the cost or the lower the profit of that theft so typically the dealership is gonna approach you and pitch you with kind of like a money back reimbursement so if your car gets stolen and we did the vintage thing for you we'll give you back twenty five hundred bucks or three thousand bucks or whatever so yeah maybe they paid out one or two of these in the history of the dealership but ultimately this rarely happens if ever and who knows how much money they've made selling these things so the second theft deferral I want to talk about our wheel locks okay so wheel locks you can literally buy these on Amazon again for 20 bucks it's basically just the lug nuts that go into your wheel so if you have five lug nuts for those will be regular and the fifth one will be one where you actually need to have a threaded key that fits that pattern and the lug nut to be able to take the wheel so that just helps from rim and theft and wheel protection so basically I mean the they're charging like 200 bucks 250 bucks for these kits it's a little lug nut that costs maybe 20 bucks on Amazon okay number five this one's hilarious the nitrogen fill-up okay so this is talking about yeah this is talking about them filling up your tires with nitrogen charging like 70 dollars per wheel or like $200 for this set I mean this is almost comical you guys there's so many fake benefits that talk about oh you know this helps your tires last longer and it's less prone to hot and cold temperatures because the the nitrogen doesn't expand as much as an oxygen I mean this is a load of crap you guys the air that we breathe in has about 78% nitrogen in it anyway I think I'll be ok with the remaining 22% of being oxygen so if they take it or if they offer it for free you know take it why not but at the end of the day you should not be paying for nitrogen tire Phillip okay number six is Adm additional dealer markup so you may not be familiar with this term depending on the type of cars that you buy but this typically happens when you're looking at a more desirable vehicle where supply is higher than demand and if you haven't checked out my supply and demand video go check that out right now but ultimately this happens where this is a hundred percent profit for the dealership okay this is literally 100 percent profit zero overhead goes into this they're literally just marking up the price of the car because of the demand so this typically happens in situations with like you know highly desirable models where they're not making a lot of them so let's call it like the new c8 Corvette the new Corvette that's coming out for 2020 Shelby Mustang a couple years back the Civic type-r a couple years back rarer Porsches that they don't make many of so what the dealer will do is they'll typically add on a cost on top of sticker so not only are you paying sticker which is stupid to begin with you're paying above and beyond sticker and if you pay over sticker well you're an idiot sorry so basically dealers have a network of other dealers that they talk to if they're you know a Porsche dealer or an Audi dealer or Chevy dealer they can contact these other dealerships and trade them other cars to get that kind of car so a lot of the time is that supply and demand really is manufactured and artificial if you really want one of these cars I mean talk to one of the managers at the store they can most likely trade for the car if they don't have it ok so don't pay for a DM and number 7 this is the last one and there's actually multiple items within number 7 but this is for accessories ok and cosmetic upgrades so this is one of the biggest profit centers of the dealerships so when I worked in selling cars Alex I also sold accessories and other things such as paint protection fabric protection window tint and detailing you guys this is not worth it there's hundreds of percent of markup built into the price of these things so the paint protection that is 100% junk it will not last for more than a month I can guarantee you the stuff that we sold the guys in the back literally just rubbed it on and washed it off and you know buffed it out and it was gone ok so people are paying like five six seven hundred dollars for these detailing packages and it's not what they think it is you can buy these online at like Auto geek.com for literally you know fifty hundred bucks and you can get a true polymer coating on your car to wear everything just falls off of it kind of like a duck's back you know water literally just beads right off that's what I use on my own cars and they'll sell this for like six seven hundred bucks the fabric protection that they sell that is junk okay and you know how I know it's junk this stuff if you're using a real one it takes you know a few hours to actually set in propria and you have to put on a couple layers you can buy Scotch Guard and there's stuff in a can for nine dollars and do it yourself and literally a day okay you don't need to spend 150 200 hours for the fabric protection okay the window tinting is absolutely overpriced support a local business and use someone locally it'll be jeepers and I can almost guarantee you they'll do a better job and then detailing do not get the detailing at a dealership so think about it logically you guys I detailed my own cars and it takes at least three four hours if I'm doing just a one-time one over with the buffer the dealership Detailers they don't have this much time okay they don't have this much disposable time to really you know get in every nook and cranny and make sure that everything is buffed out properly so do not go through detailing services through the dealer either support an independent shop or buy a buffer for a hundred bucks and do it yourself and have some pride and ownership okay so I know I did promise you guys that I'd tell you when to bring this up so ultimately negotiation is you got to feel it out it's kind of like talking to a girl at the bar okay you don't just go up to her and say hey my name is Marco do you want to get married you know that doesn't make any sense she'd probably call the police and rightfully so you have to be smooth okay you have to have some sort of building rapport give-and-take it's like a it's a balance okay you give a little you take a little then you get to the back office when the bill of sale comes out and that's when you bring the hammer down okay so when you see the bill of sale come out this is when the F&I guy prints off eight million pieces of paper and they tell you this is worth this this is worth this this is worth this that's me you can start to negotiate this and ago she ate that negotiate this okay I'll pay that ultimately the stuff that they're trying to build into here or pretty much one of the biggest profit centers of the dealership so you need to know when to be able to ask for this stuff off and at the end of the day you're the customer you can just leave okay you don't need to buy the car that's why you never go into a deal where you're absolutely desperate and have to buy something that way you have no negotiation chips whatsoever you're kind of desperate in that point at that point so ultimately I hope this video was helpful for you guys do not buy any of the seven things that I mentioned or at least buy them outside of the dealership or the mark-up isn't so high and if you want to be a good Samaritan share this video on social media with one friend I would greatly appreciate it and as always have a prosperous day [Music]

Channel: Marko - WhiteBoard Finance

Views: 22,587

Rating: 4.9151125 out of 5

Keywords: car dealer rip offs, car dealership scams, car dealership rip offs, car dealer fees, car dealer fees to avoid, car dealer documentation fee, car dealer doc fees, used car dealer fees, car dealer processing fees, new car dealer fees, dealership scams, dealer scams, review bill of sale, car dealership fees, car dealership negotiation

Id: yLRBkn8s__I

Length: 15min 33sec (933 seconds)

Published: Mon Aug 05 2019