HOW DO YOU KNOW IF IT'S A FAKE FEE at CAR DEALERSHIPS? Auto FINANCE: The Homework Guy, Kevin Hunter

[Music] is there an easy sniff test to help you figure out if you're being charged fake fees at a car dealership yes and since I received thousands of car contracts every year from my viewers you're going to see exactly what I'm talking about once you know this stuff your spidey sense will go off every time a dealer tries to hit you with a fake fee hi I'm Kevin hunter also known as the homework guy and author of is that the best you can do welcome to the home of super high intensity training on how to buy and sell new or used cars courtesy of the homework guy team when it comes to smart car buying you just can't beat super high intensity training and this graduate-level shirt is available now in the links right down below if you're a first-timer here consider subscribing and leave us a comment below add hashtag the homework guy if you'd like a response directly from me or one of my staff members we are always glad to help our compliments you can also email me at info at the homework guy comm with a specific question or if you'd like a free car contract review just blackout your personal information and use the same email well let's roll many of you have asked if there's a way to quickly and easily determine if a fee comes from your city county or state or if that pesky little fee is just made up by the dealership you are shopping with you know those unsavory fees added on in the last minute to boost dealer profits the answer is a resounding yes and you're going to need a calculator to figure it out you see if you look closely at your car contract the only thing that is not being taxed are city county and state fees like title transfer fees and licensing fees nobody likes to pay fees but at least those fees are charged and wasted by your local government and are otherwise known as the legitimate fees on a car contract you could also think of them as the fees the dealer has no choice but to charge you and they will simply be sending them along to your local government offices any other fees put on your contract by the dealership is just an attempt by the dealership to jack up the cost of the car after you already negotiated sale price and these fees are fake you'll know they're fake because they are taxed and that's a dead giveaway that the dealer is using fees to pad the profits on the deal you see the state taxes every added product including fees because that's money that's changing hands and the state isn't collecting it themselves so how does the state view all those fake fees haha you're essentially buying them you're being sold a fee isn't that nice if you like being sold fees well how about if I charge you five hundred dollars for watching this video a little 500 dollar fee and then you can use the link down below to send it to me how wonderful is that huh smart people see fake fees as an underhanded way of making a twenty thousand dollar car with two thousand dollars in fees turn into a twenty two thousand dollar car because that's all it is I'll show you some examples of this and exactly how you handle it in just a moment however I want to quickly handle those trolls that come here from my dealer followers for all you sales been visiting here today you use car managers general managers finance officers dealer owners specifically those of you who like to troll here and complain about the information I share with my audience well this is for you but also more helpful information for my followers you dealer associates will say Kevin just doesn't like us to make a profit he doesn't understand business it's the same old tired wine and I've heard it a thousand times you're totally wrong anyone with a head on their shoulders recognizes that profits are needed for any business while I'm against are you actually listening what I'm against is your practice of pretending the sale price of the car is X and then padding X with a bunch of fees after the fact that's exactly what I'm against your cat and mouse game why can't you just come clean and say you need to make money so here's the price of the car so you can make money why all the acting the smoke and mirrors the game playing the fake fees you think I don't understand business of course I do what I'm saying is that you don't understand ethics there's a flaw in your character if you missed what's wrong let me illustrate every kool-aid drinking salesman or dealer employee brings the same old tired stories what about margins at Walmart or Best Buy you ask it's as if you are really that stupid and you really think it's a complaint against profits by your car buyers here's what I want you to do if you really believe that go to any store any place or product you want to compare margins with and give me an example of any customer who bought something and had the cashier say well your total price is a hundred bucks but then we had to add in our in-store merchandising fee which adds another ten dollars plus our delivery fee of $12 for the truck that brought it here then there's the advertising fee right here another five bucks because that's how you knew to come into store today and then there's an aged inventory fee of five dollars because you didn't come soon enough and a twelve dollar document fee because you asked for a receipt and we have to pay all those staff members that are sitting upstairs so your pre-tax total comes to 144 dollars of course there's tax too which brings your total to 161 every buyer in America would take that stuff set it down or throw it in your face and say you can keep it and that's exactly what I'm saying to you and what every person who has come to this channel is saying to you stop the game-playing give a straight-up price in the first place or you can just keep it now let's take a look at those cart contracts they are real contracts received in the last few days it's stuff happening right now in current market conditions in the car business follow along if you didn't get how to do this from my earlier explanation I'll do the math for you on these contract examples and show you anything else that I wouldn't have paid for either here are several illustrations between fake and legitimate fees also known as the taxable and non-taxable fees the clue sits right in your tax total and here's how you figure it out all right this first contract is a 2016 Nissan GTR the sale price seventy four thousand nine eighty eight first of all if you negotiated a sale price of seventy four thousand nine eighty eight which you didn't this looks like exactly the price that was on the window of this vehicle not a very smart deal here but anyway I digress let's talk about the fees that are showing up down here in the contract this dealer is doing something very slimy it says taxable fees estimated $149.95 but when you look down categories here are tagged fee and dealer fee $79 and $899 those are also taxable fees the dealer has created a category in which they put other taxable fees in and then itemize those other fees down below and they are also taxable fees then you notice that the tax calculated the four thousand six hundred twelve dollars and 22 cents is tax calculated on the sale price of seventy four 988 and the addition of all those fees that you're seeing up there above and so subsequently while the negotiated price was seventy four 988 the dealers actually charging you a sale price of 76115 dollars and ninety-five cents all right let's move on to the next contract this is a twenty seventeen Toyota Tacoma the sale price twenty nine thousand nine ninety five again this isn't a number that a customer arrives at so apparently you failed to do a negotiation of price here I want talk about a couple fees that are showing up down below you see the Florida doc stamp and the license those could be the title and license fees just make sure that you check with your State DMV sites to make sure those numbers are accurate they look like they likely are but make sure all right now the three categories of fees right here in a row pre delivery service charge seven hundred ninety five dollars electronic filing two hundred and thirty nine dollars tag agency fee fifty seven dollars and fifty cents now you notice there's a double asterisk behind all three of those fees I want to share with you what they actually are the electronic filing fee there is no such thing as a charge electronic filing for you from your state first of all that's just another fancy name for dealer dock fee but when we look at these double asterisks down below it says pre delivery service charge electronic filing fee and tag agency fee this charge represents costs and profits profits to the dealer inspecting cleaning and adjusting vehicles and preparing documents related to sale I want to show something with you guys this is pure nonsense the reason why dealer retail on vehicles are much higher than private party on vehicles is because dealers are responsible for inspecting cleaning and adjusting vehicles they don't have any reason so ever to add in additional fees for those services that gives them the opportunity to charge an exorbitant Lehigh retail price for a vehicle to begin with again the reason there's a difference between dealer retail and private parties is because dealers are generally inspecting fixing cleaning adjusting vehicles exactly what they're putting down there and creating additional itemized charges for you so all they did was take this sale price of twenty nine ninety five and Jack it up by the additional cost of seven ninety five the to thirty nine in the fifty seven fifty for a new actual charged sale price on the vehicle don't let your dealer do this to you this next vehicle we've blocked out that your make model VIN it has a retail price of twenty eight thousand six eighty their savings here of twenty one hundred and eighty dollars now this buyer appears to be a little savvy because under accessories service contract and gap those are all zeros that's what it says on all of my personal car contracts because I don't buy any of that stuff then there is registration of one hundred fifty dollars possibly that is the state fee and I say possibly because that fee usually has some cents on it as well again it's not a really big deal given what the numbers are but ask the dealer to itemize what it actually is and it's very likely dollars and cents and then right below it is title inspection and dock fee that could be nothing more than just the dock fee but they're gonna give it multiple titles so you're less inclined to ask about it the dock fee on the contract should not ever be more than $75 no matter what state you're in in any state that tries to charge you a dock fee more than 75 and claims it's due to their state law that's hogwash by the way all legislators ever did was pass laws saying you have to charge customers the same so the dealer following the passage of the law in their state ripped off the very first customer after the passage of that law to the tune of hundreds of dollars or even possibly a thousand bucks and then they ripped off every single customer the same after that so if you're sitting in a dealership that says our dock fee has to be $8.99 because that's what we charge everybody well you know what pay them a $75 dock fee but subtract the difference between eight nine and 75 and take that money out of the sale price of the vehicle and then go ahead and let them put 899 in your contract in the end you still won't have paid any more than $75 for a dock fee let's jump here to the 2018 Mazda cx-5 on this contract we have a sale price of twenty four thousand one hundred a discount of fifty 106 adjusted sale price eighteen nine nine for now this is what the negotiated sale price of the customer is the eighteen nine nine four let me show you how the dealer patents that up to an actual charged sale price they add $250 pre delivery service charge to this vehicle it's a used car you guys this didn't come from the manufacturer anywhere else this is just the dealer adding on and then there's a temp tag of two dollars and mostly these little nickel and dime fees are added in to make you think that they're possibly state fees and fees you have to pay again this is hogwash it's two bucks but I wouldn't pay it there's an electronic filing fee of $175 again this is just a fancy name for a doc fee I would reduce that to 75 bucks there's a battery fee of a dollar fifty for what and then a dealership fee of $6.99 so again here you see what they did to your negotiated sale price they jacked it up with all of these fees so here's your new charged sale price because that's all that happened here I hope all of this proved to be productive for you and you learn something about looking at your contracts in the future everything I shared with you on these contract examples happens to also be exactly what I do to review a contract for a car buyer it's simple enough you saw several examples you can certainly do this yourself but we're always happy to help you out if you need it for you dealers who came here today looking for another opportunity to whine all make you a deal quit deceiving people to fatten your numbers after you already agreed on the price and all stop telling people you're just trying to steal for them deal do you think you could also stop telling people you're losing money on every deal like you're some kind of charity charities don't build multi-million dollar facilities like you do to sell cars casinos do that and they aren't losing money to their customers either all right if you appreciated the video today consider giving us a thumbs up and leave a comment below and do me a favor would you include hashtag the homework guy in your comments below share the video on social media with your friends and use the hashtag again with time the accumulation of information and tips on hashtag homer guy will be phenomenal if you watched all the videos on this channel send me an email let me know what you learned how did you apply the techniques to win on your last car deal perhaps I'll send you one of my super high intensity training graduate level shirts for your diploma for those of you who like to say thanks with a tip I'll leave the links for PayPal and the cash app in the description box below I've helped millions of car buyers with videos free contract reviews market updates and much more and we'll continue to keep you up to date with videos like this one in the days ahead do me another favor would you for any of you who got a smoking hot deal put it in the comment section below and share so others can benefit from your great experience by sharing your shopping stories you're adding to the super high intensity training everyone gets by visiting the homework guy channel that calls for a knuckle bump we are literally exploding on the web right now folks thanks to all of you coming back to visit sharing it with your family and friends and being a 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] [Music] you

Channel: Kevin Hunter The Homework Guy

Views: 60,988

Rating: 4.979907 out of 5

Keywords: Car prices, Car prices set record highs, used car dealerships near me, car loan calculator, Auto sales, Used cars, Car, Cars, Car dealers, Automotive news, Car news, Automotive, Vehicle tax, Vehicle fees by state, Auto Shop, Car parts, Auto market, car dealer finance office, rebates for new cars, car loan scam, dealer rip offs, market watch out for this financing scam, what to do when a dealer lied to you, illegal things car dealers do, what to do if a dealership rips you off

Id: ub6azCUGqGM

Length: 15min 13sec (913 seconds)

Published: Tue May 12 2020