Recently I was out shopping for a new car and I noticed something at all the car dealerships. they had these extra charges that they charged to every vehicle – called either the admin or documentation fees. Scott Clark Toyota Scion at 13000 E. Independence Blvd. Charlotte NC apparently had one of the highest of these administration fees at $599.
So I had to ask myself and the other car dealers what exactly is this admin or documentation fee? I got all sorts of answers and most of them were lies. Only at Hendrick Honda on South Blvd. was I told the truth. The sales manager there told me it was pure profit for the car dealer.
He said that it was monies that the car dealer didn’t have to share with the salespeople. it was just shared between the car dealer, the general manager and a few other top managers. I don’t know why the sales manager shared this information with me but I guess he felt this was the honest thing to do.
After that I checked up on the Internet and I found that several states have actually set legal limits on what car dealers are allowed to charge for these extra profit admin or doc fees. California just instated a law where they set a maximum of $59 for the dealer admin or doc fees.
That means that in California if a car dealership tries to charge you anything more than $59 for an administrative or documentary (admin or doc) fee that they are breaking the law and could face serious problems. Now think about it this way some of the most profitable car dealerships in the nation are located in California. They are still far more profitable than the car dealerships in North Carolina even with the $59 limit on admin or doc fees.
So why are we here in North Carolina subjected to extremely high and ridiculous admin fees like the $599 admin fee at Scott Clark’s Toyota Scion? Should car dealers be allowed to charge these ridiculously high fees in North Carolina? If you want to get this changed like they did in California you need to take action and call up your local state representatives and tell them that you were against these ridiculous charges by car dealers.
I also looked up exactly what these admin or doc fees are and it turned out the sales manager from Hendrick Honda was actually correct – they were pure hogwash and pure profit for the car dealer. Also when you buy a new car look at the window sticker. The window sticker specifically states that the manufacturer pays for a full tank of gas and preparation of the vehicle for sale.
Many car salespeople, especially the ones at Scott Clark Toyota Scion, lied to me and try to tell me that takes care of gassing up the vehicles, washing and waxing them for display, a full detail prior to delivery, etc… The worst lie I was told was by a salesperson at Dick Keffer. They told me that they take the car completely apart and clean every part and put it back together again prior to allowing customers to test drive them and that this admin or doc fee covers that.
I think it is ridiculous and that’s why these car dealers in North Carolina are getting so rich off their car lots. My advice to you is to either find a car dealership that charges a lower admin or doc fee or refuse to pay it and make them take it off the price of the new or used car – but do this only after agreeing to a price on the car you want to buy. This way they have to eat the cost of the admin or doc fee.
Also, be sure and look up the true invoice prices at Edmunds.com prior to ever going into any car dealership to buy a new vehicle. They also have wholesale pricing of used vehicles so you’ll know not to pay too much. And by all means if this is ridiculous price gouging of consumers in North Carolina by car dealerships like Scott Clark Toyota Scion makes you mad then please contact your state representatives and file a complaint with them.
If enough people in North Carolina do this then laws will be enacted or changed similar to what happened in California so that car dealerships can only charge a maximum $59 administrative or documentary fee. I would like to see a similar law to that of California regarding admin and doc fees get passed here in NC!