Car Doc Fee

After so much research, thinking, discussions, numerous visits made to dealers showroom you zeroed down the car you want to buy. Then the D day comes when you went to the showroom to buy your dream car. After hours of negotiation all settlements have been done, you are about to sign the final documents. Within few minutes that shinning twilight purple metallic 4 wheel machine will be yours. But as you read the papers and go down you will spot a fee of $595 which you were not aware with an unfamiliar phrase describing it as “Dealer Service Fee” or some call it “Delivery Fee” or some car dealers charge it as “Document Fee” or “Doc Fee”.

First reaction of yours will be “What’s this is for?” ”Nobody told me about this earlier!”
If the dealer from whom you are buying the car doesn’t have a Full Disclosure Policy, will not disclose this fee earlier. It will be introduced at the last moment. Exhausted you after spending half of the day in the showroom waiting for the deal to be closed, car to be ready, will pick up the pen and will sign after little bargain.

But do you have to? Is it necessary to pay this fee? And what exactly is this thing called a “Document Fee?”

It’s easy to answer the second question first. “Doc Fee” is a cost charged by dealers for preparing the documentation at the time of new car buy. To some extent, this is legit. We may not have given attention to it but there are line of people from lower level to high cadre whose job is to see that all the documents submitted dealing in car sale purchase are in correct order and accurate. So this is their labor fee. But being frank it also includes the profit margin of the dealers. In some cases it is huge, means huuuugee!!

Doc fee varies from location to location. In some places it ranges from from $295 to $695 whereas in some other it can cost up upto $2000. So it is clear the ones who are paying such huge doc fee the dealers of that area are earning huge profits. But to my surprise, in some states doc fee is being regulated by the state and can be charged maximum to $50. I am sure there will be some areas where NO “Doc Fee” is charged on new car purchase.
 

But the question arises how the car dealers get away with this? It’s pretty simple if all the dealers in your area will charge the fee. It will be horrible inconvenient for you to go and buy new car from some other state. So customers pay the fees demanded by the dealers.
 

But more important question is. Do you really need to pay this FEE?

It all depends upon dealerships in that particular area. In my experience 99 out of 100 dealers charge it so one left out will start charging it eventually. And if ardent customer refuses to pay that Doc fee, the dealers refuse to sell the car and you have to go home without your dream car. As a customer you can only equalize this not so required fee by doing good bargain in getting discounts from the car dealer. Like ask for $595 discount or equivalent free car accessories to make up for the $595 doc fee which you have to pay.

Now here comes the rider and the hidden cost. If you think you have managed to land an awesome deal for yourself. A deal which may only be break even or cost to cost for the dealer. You may still be required to pay the doc fee and this might be the only fees that the dealer would be earning on the deal. This might be the money that might be allowing him to stay in business and the dealer’s only profit source.  Now you might think that is not a fair business practice and borders on the business ethics as all fees and charges should be disclosed to the customer before closing the deal. The customer should raise his voice for the deceptive tactic used by some. We provide a full disclosure and all charges and transaction costs are laid in front of the customer beforehand so that they do not feel cheated and shortchanged later on when they sign the cheque.

Bottom line is that don’t get caught off guard by this Fee introduced by dealer at last moment. Expect such thing to happen and be prepared to deal with them. Be upfront and ask your dealer for all the prices included in the final cost.
Good luck!

About The Guest Author: 

Sofia Williams writes for Mark Kia. She is a freelance content contributor and likes to write about various spheres like Social Media, technology trends and her secret favorite – cars and automobiles. She is a keen observer and contributor for various auto forums and the online auto space.

 

What Chevy, Ford, And Dodge Are Doing to Regain Market Share

The collapse of the economy in 2008 did a number on Ford and GM (General Motors), as most clearly evidenced by the fact that GM almost went bankrupt and had to be bailed out by the US Government just to remain solvent. Ford, too, might have gone under had it not been for excellent sales in Europe and a cadre of loyal F-150 customers who continue to make it the most popular vehicle on the market. Factor in high fuel prices and cheap imports fueled by the weak Euro and Yen and it's clear to see that Ford and GM are up against the ropes.

As such, each company has come up with their own strategy for getting back on their feet. Ford has focused on specificity, increasing its focus on providing specific cars to specific markets. The F-150 is aggressively marketed and sold in the United States, especially in the south, mid-west and southeast, where heavy-duty trucks are prized for their off-road capabilities and large carrying capacity. In more congested areas such as California and New England, Ford pushes their popular Fiesta, a car originally developed for the European market that was made famous by rally and gymkhana artists for its small size and excellent handling characteristics. 

Chevy, meanwhile, is dipping its toe back into subcompacts, something it hasn't done since the 1970s and 80s. Its forays back then were halfhearted and incomplete, and the cars they produced were decidedly unpopular. Chevy has learned from its mistakes and paid close attention to its competition, producing very small light cars such as the Spark. Originally intended for the European market, the Spark is small, fuel efficient and inexpensive, intended to compete with Volkswagen and Toyota for the small hatchback market. They have also introduced the Volt, which is a new spin on the hybrid. It allows the driver to choose whether they are running solely on electricity, or are using the onboard fuel-powered generator to charge the electric engine. It’s an interesting concept that hopefully will inspire the next generation of fuel sipping cars.

Dodge, being a producer of heavy trucks and sports cars, is in more of a bind. They do not want to dilute their brand by producing small micro-cars, but they know that not everyone wants one of their large pickup trucks or SUVs. Therefore they have reintroduced the Dodge Dart. Though the original Dart was maligned as underpowered and poorly designed, the modern Dart is a four-door sedan capable of competing with the Volkswagen Jetta and the Toyota Camry. Dodge has also introduced a new Challenger that is an affordable and gas-sipping muscle car, thanks to its unusually low weight and simple construction. Dodge hopes that by making more "European" styled sports cars with better turning and handling capabilities, as well as a better power-to-weight ratio, they can offer lots of speed at low prices and without guzzling gas.

These strategies tending towards lower weights, lighter construction and more efficient engines are long overdue, and were only able to be postponed while SUV sales propped up the companies. As such, it appears that these changes won't just benefit the companies in the short term, but it will prepare them for the challenges going forward into the 21st century. As cars get smaller, lighter and more fuel efficient, some even using alternative technologies, it appears that Chevy, Ford and Dodge will be in the forefront, producing the cars that people want to buy and making their employees, investors and customers happy.

Author Bio:

Natalia Jenkins is a writer for Osseo Auto. She loves writing on cars, history and reading classic books. She also is secretly a car aficionado. Osseo Auto is a leading Chevy car dealership in Wisconsin that sells new and used cars in Eau Claire and La Crosse.