DOCUMENT (DOC) FEE: #1 FAKE FEE at CAR DEALERSHIPS: Auto Expert, The Homework Guy Kevin Hunter

[Music] dealer document fees I'm sure you're wondering if this fee is legitimate or not because by far it's the most common fee to show up on car contracts everywhere hi I'm Kevin hunter also known as the Homer guy and a throb is that the best you can do welcome to the home with super high intensity training on how to buy or sell new or used cars courtesy of the homework guide team let me say something here this video should be the most viral video I've ever made why literally every car buyer who has ever gone to a dealership has been stung by this a hundred percent of all the fees car dealers charge their customers a document fee is the most consistently charged fee and the fee also with the most aks or also known as titles like efile feed dealer feed dealer processing fee electronic filing fee and many more all of it designed to get around state laws that clueless legislators wrote to prevent cheating and gouging at customers see these lawmakers have no idea who they're dealing with the information you get on this video will be so clearly explained and so good that it's gonna tick you off and you're going to want to share everywhere it that's exactly why this should be the hottest video I've ever produced today I'm going to explain to you what documentation fees are or dock fees and why dealers charge you to begin with to start with I have to explain why there's a difference between dealer retail on a used car and private party prices now it might surprise you but that's key to the entire discussion then I'll show you a list of costs that dealers claim document fees help cover and how much document fees averaged in your state last of all we'll be strategies you can use to avoid paying documentation fees altogether and you'll understand why I say you should never pay more than 75 but before we do that here's a short message from the homework guys staff if you're a first-timer on the homework guide channel consider subscribing and leaving us a comment below add hashtag the homework guy if you'd like a response directly from Kevin or one of the homework guy staff members we're always glad to help our loyal followers best part is there is no charge you can also email the team at in flat the homework icon with a specific question or if you'd like a free contract review just blackout your personal information and send it to we'd love to hear from you just be aware that we do get a lot of requests so just be patient while you wait for response back to you Kevin to start I need to explain what a documentation fee is dealer documentation fees also known as doc fees will be explained by most dealers as a fee to cover administrative costs related to title registration and other paperwork that they must do involving your car purchase now that's the basic explanation you'll get more in a moment but now I want to outline a few of the reasons that dealer retail prices are different for used cars and much higher than the price that you'd have to pay for a private party seller for the exact same car pay special attention this is going to get hilarious if not ironic in a moment here are just 14 of the responsibility's dealers have and there are many more that account for why their used car prices are much higher than the exact same car at private party values here we go and in no particular order number one checking vehicle maintenance safety history in titles number two provide a full condition and information label on the car window third determine and disclose accurate vehicle mileage number four obtain and print all the legal forms required for the process of selling a car number five processing title transfers and license plates number six maintaining proper security for private client information as well as dealership state and federal information number seven adherence to admission testing and laws eighth passing along information including lemon law notices number nine processing taxes on your purchase number ten processing rebates for your new cars number eleven disclosure of consumer rights and obligations number twelve maintain technology for loan and paperwork processing thirteen training dealership staff and fourteen maintained licenses to conduct business now there's a reason why I gave you those fourteen there are several more but I give you those fourteen for a specific reason now let's move on to the list of cost that dealers have used to explain why they must charge a document fee buyers have heard every one of them at this point or another here we go all right did you get that this list to justify documentation fees is exactly the same as the list that justifies why dealers charge more for a used car than any private party seller you see the problem here this is known as the double dip listen closely by charging a documentation fee the dealer is doing nothing more than charging it twice for services they provide the first time by being a dealer and having an already much higher price for their vehicle than a private party seller because you know of all the stuff they do and the second time when they charge you a documentation fee you know because of all the stuff they do and it's all the exact same stuff the Delphi self the justification for higher sales and the justification for a documentation fee is the exact same stuff why would you take the whack for it twice does that make any sense of course not I started this video by giving you the canned explanation for what a documentation fee is but that was just a pile of crap what a documentation fee is and all the other dealer fees are is nothing more than the dealer changing the sale price of the car jacking it up with a fee after you agreed to a price it's that simple let me give an example imagine if a person came to buy a trailer that you had listed for sale at the end of your driveway for 500 bucks they asked if you would accept 450 and you say sure as they pull out the money you save that brings the total to $550 imagine their surprise what the buyer yells I thought you were accepting for 50 you say yes but I have $100 fee the total is 550 Pierre nonsense all you did was jack up the price of the trailer after you agreed to sell it for 450 the buyer knows it you know it and you're probably gonna get a kick in the pants right here now remember that trailer story because I'm gonna come back to it in a moment let's move on to how much dealers charge for documentation fees in each state and I put them in order by how much they charge this is where it gets really funny and shows you how much of a mockery dealers have made out of documentation fees across the country here's the states and their average fees in money order Minnesota 75 New York 75 Oregon 75 you see that why does Kevin say charge 75 or never pay more than 75 three states do this service perfectly for 75 bucks not California $80 Arkansas 129 South Dakota 129 they're starting to get a little greedy Pennsylvania 134 Texas 150 Washington 150 Illinois 169 West Virginia 175 Iowa 180 Vermont 180 Indiana 198 Missouri 199 and Alaska hits 200 bucks Louisiana 200 Michigan 210 Rhode Island 220 Wisconsin 229 Hawaii 245 Ohio 250 Mississippi 260 Delaware 292 Idaho 299 Montana 299 Nebraska 299 North Dakota 299 Oklahoma 299 Utah 290 there these states need to quit tagging each other DC 300 bucks Maryland $300 New Mexico 339 South Carolina 350 New Hampshire 379 Massachusetts 395 Kansas 399 New Jersey 399 Arizona 425 Kentucky 450 Alabama 499 Connecticut 499 made 499 Nevada 499 wow are these states gettin greedy Tennessee 500 Wyoming 500 Colorado 598 gorgeou 599 North Carolina 599 Virginia $5.99 and the greediest dealers in the world are in Florida $7.99 average dog feed now here's the thing you notice all these fees that got just extraordinarily high these are just average just yeah there's plenty of them that would charge you a thousand bucks for a doc feet but now that you have figured out why I always say you should never pay more than $75 for a doc fee if car dealers in Minnesota New York and Oregon are perfectly fine with a $75 doc fee so are all the other dealers in all the other 50 states Florida $799 average documentation fee what a joke it costs a dealer in Florida $800 to send your title and license documents to the State DMV while a dealer in Oregon does it for $75 yeah not a chance now I promised I'd give these strategies for getting rid of documentation fees first you have to understand that clueless legislators in some states passed laws that require dealers to charge all customers the same document fee let me translate because of dim-witted legislators yeah those guys who don't realize how crafty dealers are the smart crooks these stupid laws they thought would prevent dealers from playing fee games with their customers well it leads straight to dealers ripping up every single customer that walked through their doors and telling each one of you that they have to charge the fee according to state law how ironic the dealer has been screwing all of its customers with a $5.99 doc fee for example before you walked in and now they get to screw you too as well because they say that the state law requires them to do it isn't that just great all right here's how to deal with that crooked dealer and to illustrate it I need to bring back the example the trailer you were selling at the end of your driveway remember that one okay so you were selling it for $500 and the buyer offered you 450 and you accepted then you told him that the amount due is 550 because you know your $100 fee most buyers would just pocket their money and walk away however there's another way to deal with this the savvy buyer of the trailer says I didn't know anything about your hundred dollar fee and you explained that you charge everyone the same the buyer says well that's easy I got a solution I'll pay that hundred dollar fee and a sale price of 350 for the trailer and that brings the total to $450 you scratch your head you've been outfoxed in the same exact fashion the smart car buyer agrees to the documentation fee the dealer claims they must charge by state law and then just take it out of the price of the car that's exactly how you do it when you do the math you end up right where you plan to be landing right on top of the very price you negotiated and agreed to pay for the car you want you see how simple that is I hope you never get stuck with a ridiculous document fee again and if you ever run into a dealer charging more than $75 just subtract it from the price of the car if the dealer says they can't do that you immediately say oh are you saying that you can't do what every dealer in Minnesota in New York and Oregon does for 75 dollars you now know what a document fee is you know about the double dip you understand that dealers have made a joke out of it charging anywhere from 75 to a thousand bucks depending upon what state you're in and you know exactly how to get rid of it you're welcome now here's how to get even with every dealer who ever hosed you with a documentation fee I'm talking about literally every dealer in the country doing it to every buyer they see share this video out everywhere blast it out to every group that you're a member of have it ready to play the next time you visit a dealership that'll tick them off and then let them know thanks to the homework guy team you're on to them let's make this one go viral all right if you appreciate the video today consider giving us a thumbs up and leave a comment down below include hash tag the homework guy in your comments share the video on social medias your friends like we said make sure you blast it out everywhere if you've watched all the videos on this channel let me know what you've learned how did you apply the techniques to win on your last car deal and if you got stuck with one of those ridiculous document fees comment below and let us know who the dealer in what city and state they're in for those of you who like to say thanks for the tip the links you see right here on the screen for PayPal and cash app they'll be easy to find in the description box down below there are zero obligation so don't worry about it I've helped millions of car buyers with videos free contract reviews market updates and more and to the complete dismay of car dealers we aren't going anywhere and this video will be up forever you can share it every single time you go car shopping thanks to all of you coming back to visit sharing our Vedas with your family and friends and being a much-needed part of bringing awareness to shoppers in the auto industry you guys Rock that's it for now I'm Kevin hunter until next time take care everyone [Music] you [Music]

Channel: Kevin Hunter The Homework Guy

Views: 63,506

Keywords: car loan calculator, Auto sales, Used cars, Car, Cars, Car dealers, Car news, Car news USA, Car Buying Tips, cash, car dealership rip offs, car financing, car rip offs, car tips, scam, how to pay for a car, how do car salesman get paid, how to pay cash for a car at dealership, investments

Id: XQiN3iV1jHA

Length: 14min 11sec (851 seconds)

Published: Sat May 30 2020