i'm getting quoted $160 in michigan for a document fee, which is separate from tax, title, plates (though its a taxible item). what is it exactly and what is honda's usual fee? i'm thinking its a different way for the dealer to keep the price up after negotiations...

A "document fee" is the same thing as "ADP" - Additional Dealer Profit. It's a ruse to get more money out of you, and that's all it is.

It is portrayed as a "mandatory fee" or "required by policy" so the dealer has a chance of getting back some of what was given during negotiations. If you are hit with a "document fee" as you are doing the paperwork, just remember that the salesperson knew about that extra cost while you were haggling over the price.

It's a slimy - but too common - practice.

The best way to avoid all of theese charges is to do your research. Get all the info you can on line, talk to several dealers out of your area. You should have a price you are willing to pay when you approach your local dealer. I tell the sales person the ammount I am willing to pay out the door. They have great computers that adjust all the taxes and fees. The most glaring thing I have noticed is the destonation and doc fees are a big N/A on the fial paper work.

You have to pay the destination fee, but not the doc fees.

Why do you have to pay the destination fee? Where is it written that you must pay the fee?

Okay, technically you don't have to pay the destinations charges... but what I meant was that it's built into the MSRP and not added on later by the dealer. So I guess if you get better than $500 or so off the sticker, you just got the dealer to drop the destination fee!

[quote:67a0855a61="overthehillbill"]Why do you have to pay the destination fee? Where is it written that you must pay the fee?[/quote:67a0855a61]

Even the learn-to-buy-a-car sites indicate that it is unlikely you'd ever get a dealer to waive that fee. I suspect that the manufacturer doesn't charge the dealer the entire amount that you pay, but the dealer is paying the factory near that amount.

Try to get them to cut everything else to the bone, however.

-brendan

My doc fee was $50, and I asked about that "you're charging me $50 to file my paperwork?". He said, "yeah, basically you pay us $50 to submit your license, tags, title application and fill it out, etc." I didn't complain, but I don't think I would pay more than that. They also said that when the plates come in, they will mail them to me for free. All of that service is worth something, especially if you don't pay any other markup. Remember though, that everything in this life is negotiable.