5 Hidden Fees Dealerships Charge on New Cars
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- Опубликовано: 8 июн 2024
- When purchasing a new car, look out for these 5 hidden fees!
Comment below with any questions you have!
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Chapters
0:00 - Intro
1:31 - Hidden Fee #1
5:06 - Hidden Fee #2
6:11 - Hidden Fee #3
7:40 - Hidden Fee #4
8:47 - Hidden Fee #5
9:59 - Necessary Fees 
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When we bought our Ascent, the dealer wanted $108 to upgrade the interior to LED lighting. I went to Amazon and bought a package of 12 LED bulbs and changed them out myself in about 15 minutes and it cost me $8. This is why folks never trust dealerships.
A response to the shady nitrogen filled tire dealerships out there is air is naturally 78% nitrogen already.
exactly what a stupid add-on
The elephant in the room which was not mentioned in this video but is *extremely* common at dealers these days are fees that are often referred to as "appearance packages" or "protection packages". Typically they involve things like protective coatings for the paint and upholstery (i.e., wax and Scotchguard), clear door edge film, windshield chip/crack warranty, and sometimes a few other things. They usually range from $500-1500, and are a total cash-grab by the dealer. The salesperson will say they can't take the fee off because all of their cars get those things applied, but the reality is that they can make those fees go away. My dealer tried to charge me $1600 for it and I told them no deal if I have to pay for it. They obliged.
Yes this is spot on, and as an F&I manager I cringed when we were told to say the “dealer fee cannot be deducted just for you, because it would be discriminatory…” When and if this was questioned, I just sent buyers back to their salesman/manager to negotiate an offset (and send me a reprinted and signed buyer’s order!) If I don’t get paid on it, I am not lying or defending it 🥰 PS I won’t lie even if I do get paid!
What you said is so true I've seen them as high as $5,000. Then they would tell you that you get free oil change for a year, no I don't I just paid for it...😂
Could you do a video on how they screw you on your trade in and how to deal with that?
If you don't walk out at least once, you've paid too much..
@@Seamus322 😅🤣😂
I was offered $2,200 from the first dealership. I took it to CarMax, Carvana, 3 Other non Subaru dealerships and got multiple offers around $5K. I ended up taking it to another Subaru dealership and they matched it. His advice of walking away and not being rushed worked for me.
Don’t buy a junk and you won’t get screwed angry because your trading in a 💩box be angry at yourself for not affording a better vehicle or earning more money to do so
Thanks for the clarity!
Thanks, very informative video!
Thanks for the good video!
Thank you, great job again.
Very helpful video,thanks.
You’re welcome! Thanks for watching
Excellent instructions
Thanks!
Very helpful. thank you
Please do a video on the installation of the Subaru Badge of Ownership. Thanks.
You didn't mention the delivery fee on a new car. You might consider yourself an expert negotiator, but when you're buying a new car, there's one fee you can't budge: the destination charge. This line item is tacked onto every brand-new vehicle, regardless of the sales price.
Thank you Alex for the honest useful information. I have ordered a2023 Forester Premium MSRP $29,695 + OP15 $1,165 price as configured $30,860 destination & delivery $1,225 + floor liner $132, bumper cover $162 and rear seat back protector $153 total $32,532. I am in CA we have painful sales tax almost 10%.
From your other video I learned I don’t have to pay the market adjustment $7,000. The dealer try to sell me a car from their inventory and charge me ONLY $1000 market adjustment. But I want to build my own vehicle with stuff that I needed. Sales person mention that when I build my own vehicle, there is no market adjustment. It will arrive on August 14.
I got a call today 7/25 the vehicle has arrived and now I learned from your video to check all the charges.
The dealer tried to hose us for Nitrogen, Windshield protection, and window tinting…they were tacking on several thousand $’s of add-ones that we never asked for and never approved. We didn’t pay for any of it and they were NOT HAPPY about it and even more unhappy when we wouldn’t give them a great review. We will never use them again.
Alex, thanks for that😊
My dealership automatically adds LoJack. At least my salesman said they had no problem taking it off if I didn't want to pay for it. They also really pushed for getting z-guard applied. At $1,500, it's a hard sell. I guarantee it only cost them a percentage of that amount
Great info! Does the 2024 Impreza Sport have the standard tinted back windows also?
Thanks! Just checked the spec sheet for the new 2024 Impreza and it doesn’t come with window tint on any trim. Most Subaru models are on all trims but the base with the exception of the Impreza.
Hi Alex. Greetings from Alberta, Canada. Thanks for all your great vids. I've got a 2024 Crosstrek premium coming from Japan. I should have it by mid-August - really looking forward to it. Currently driving my 2008 Impreza - that's been a fantastic car and it's still going strong.
When I bought my 2021 Legacy XT I paid a reasonable $199 "doc fee". Our local Subaru dealer in Florence, KY also does a great job of not ripping people off. No side add-on stickers, no dog and pony show during the sales process (who doesn't hate that?) it's actually easy to get a deal done and out the door in 1 hour. That of course assumes you know what you want. I might add, if you are buying an Outback or a Legacy and you're not sure if it's worth it to get the model with a turbo 2.4 engine, here's how to decide. If you really only want to go from point A to point B and a car is just a transportation device...the standard 2.5 is fine. If you are a former or current automotive enthusiast and the journey is part of the experience when traveling-you will not regret getting the turbo. I'm fresh off of a weekend trip in my '21 Leagcy XT with running the two lane highways with hills and twisted roads and I really enjoyed the whole trip especially the drive. It's not just the engine upgrade, the steering and handling are improved. (I don't work for Subaru.)
I am fully subscribed to Warren Buffet view on cars. Never bought a new car and never will. Not that it's something inherently wrong with new cars, it's just initial drop in value coupled with the fact that most of the buyers are impulse/emotional (which partially explains drop in value) makes it a double whammy. Overinflated new price and over-saturated secondary market. It's way cheaper to get extended warranty on a year old vehicle bought at 3/4 of MSRP vs buying new one and pay all the fees taxes and "delivery".
Yesterday purchased a 2024 crosstrek. Dealer quoted &28,840 on phone, after they did credit check and discussed financing, a extra $1800.00 was added. Asked what is that, said it is dealer ordered options and cannot be removed. Most of the options made sense except phone charger for $400.00. Car will arrive in early September? At final purchase we will see what else is new to charge for, Michigan subaru dealer. We needed a car quickly, used car market is extremely overpriced.
In addition to a dealer doc fee of around $1000.00 here in SE Florida, dealers add on a electronic filing which can be anywhere form a few hundred to over $1000.00.
Alex thank you for your honesty!!
You’re welcome Richard!
Florida is like the wild west with the gouge…true there is no state income tax, and loved the homestead exemption and save our homes, but you get to pay the “gorgeous weather tax” over and over and over…..
Florida is insane with dealer fees. Almost all 1K or over. The add on’s others mentioned is what is killing trust in the industry. I’m 51 and bought a 22 Forester Wilderness. I’ll drive it till the end unless things change.
No front window tinting in CT
Thanks!
Thanks for the super thanks!
@@alexpmo don’t thank me, thank you! Love all your tips and tricks and your fresh approach, and I have been with Subaru since 2006!
Alex, I bought a used 2021 Outback Premium w/33,093 miles from a used car dealership in NJ that specializes in selling used vehicles that have formerly been leased. The dealership already provided a lifetime engine warranty and the window sticker said "full warranty." I plan to hold the vehicle for a number of years. At least 5 and maybe more than 7 years. I was sold a 7 yr. 100,000 mile additional or extended "premier care" warranty w/$100 deductible for $3,762. It includes towing, emergency road services, rental vehicle reimbursement, trip interruption reimbursement, and MFR deductible reimbursement. My question: was this a good idea to get the additional warranty? The cost per mile is $.06 and cost per month is $44.79 (I figured the costs as the difference between 100K and the mileage when purchased). Currently I drive on average 5k to 6k per year. If you need additional information to answer let me know. Thank you in advance.
Question on insurance add one. Like insurance for my wheels, rims. Dings and dents and windshield protection. To name a few. I bought a lot of insurance add-ons that added to the price of my new Subaru. Help others or should I say warn other buyers. Just a thought where more of my money went to insure the banks car. Thank you again. Evelyn
How do I get rid of optional packages which I don't need but a dealer has already put on the car? I can just tell the dealer or do I need to order a bare-bone car on the website?
I have nitrogen in my tires from the dealer, I use Costco now. Why? Because every time I had service they would let it out of my hot tires to match the pressure on the sticker. I do notice that my pressure stays more constant and I haven't had to add any for over 6 months. I live in the Midwest too.
Would you do a video on the Forester Touring car?
Nitrogen tires are good only for race cars or aircraft.
Because I’m waiting to order a 2024 Forester Premium, this video is most helpful and appreciated. Thank you!
Any word from Subaru on how early you can order it? August perhaps? Thanks.
@@andyny29 They just say early Fall or early Winter 2023.
I am curious about the 2024’s…will it be a Hybrid? I traded in my 2020 Forester Touring and opted for a 2023 Forester Premium, which I love. I already had a 6 month lease extension from March which would have run a bit short. There was also so much extra stuff “i.e. gadgetry” I never used on the 2020 that I just could not imagine what a 2024 would be like! I am also averse to change and that 12” iPad on the new Outbacks was just too much for me! Lastly I finally tried Apple Car Play (after several Premium and Limited Foresters) and have the Tom Tom app and love it! No need for a Touring just for the built in Navigation (yes that’s why I got the 2020!) Good luck on the 2024.
Hey Alex where are u guys located or the website?
The processing fee, even though allowed by my state, is like going to a restaurant for dinner and then they charge extra to prepare and cook your meal. Four years ago I purchased a Certified Outback from a Subaru dealer. They wanted to charge me $499 for the Processing Fee. I was ready to walk when the salesman after talking to his manager said that everyone needs to pay the fee. But - for me they would deduct from the agreed to selling price by $499. Then they would add the Processing Fee back on to satisfy their management. I effectively did not pay the Processing Fee.
It's interesting that you mentioned the "pinstriping" cost that some dealerships try to make you pay for. Unfortunately this happened to me recently (2 weeks ago) with one of the dealerships here in the Charlotte area and I just told them "no thank you" and walked out. As always Alex, you provided us with another educational video!
How much 2023 Ascent premium at your dealer?
CT requires VIN etched windows
yeah my subaru dealership charged for an alarm, "ceramic coating," and 3M film on the door handles.
the 3 dealerships near me in PA, are selling crosstrek sports/wilderness 3k above msrp
Which ones name them
Yea same here I ask them how much tin on the front window is 100$
Take a look at the ford maverick. I’ve legit seen an 8k markup on a 26k vehicle. It’s been so bad I’ve almost eliminated it from contention.
Don't forget the ever popular "documentation or processing fee." I've seen that to be as much as $800. I guess they expect the buyer to fork over that much for.....? Nothing or does it take an employee or employees that much time to deliver a new car? Luckily, states are gradually capping or making these fees illegal.
Documentation fees ?
Do you see any incentives in early 24?
Is the processing fee the same as the doc fee I see on some new sales?
yes, they are the same.
Thank you kindly for rhis and many other videos. A question if you will. Are we obligated to pay for factory installed accessories that we would not have ordered? If we decline does the dealership take a hit? I oike mine and got a fair price, id like to know this going in. Thanks.
You're welcome! If you do a custom build, you're not required to add the accessories. However, if the car is already built and you're choosing amongst an incoming Subaru in a dealer's pipeline, or one that is already on their lot, you will have to pay for any accessories already installed on the car. Best way to opt out of accessories is with a special order.
@@alexpmo Thanks again. This is a factory order with no accessories. I like my dealership and got a great price, I'm relieved now that this will not be an issue.
The dealership fee is also commonly known as the doc/document fee and it _is_ negotiable. Dealerships love to price gouge using this fee if it is not capped by state law.
i've been trying to buy a new car for the last 3 months but the dealerships all feel so scummy (Southern California) that I've just decided to repair my old car and drive it until it wont pass smog.
Port fees... All the dealers in the los angeles area are adding these bullshit port fees. Has me staying away from buying a new car
What is a protection fee? Subaru is charging me $389.
PS Nice job as always Alex! When I was in Madison and Mequon (Milwaukee) Wisconsin, I routinely delivered cars to Michigan, Minnesota, Iowa, Indiana and Illinois customers and even Florida, Maryland and Colorado! E-contracting really streamlined those complex lease differences! Isn’t it nice to work for an aboveboard dealership you don’t cringe when people mention it’s name or admit you work there???!!!
Thank you!
Ugh!! DESTINATION CHARGE on vehicles made right here in Detroit 🤬
Paint protection & door edge guards for $1200 made me walk out the door...
Room/atmospheric air is 80% nitrogen. Costco air pressure is 100% nitrogen, claims will hold pressure a bit longer. Surprise and last minute added costs give many legacy dealerships a bad name. I bought my 2023 Subaru Outback through Costco buying service and it was straightforward without any surprise extras. However, many unnecessary extended warranties were “offered” at the signing of paperwork. I enjoyed all your tips in your past videos. Has battery drainage when leaving a powered tailgate open all night been solved?
Thanks! Haven’t heard any updates on the battery drainage while the tailgate is open but I’ll post about it if I do hear something
@@alexpmo campers have suggested using a carabiner in the lock to defeat the battery thinking it’s open. Search in RUclips for videos on this.
ruclips.net/video/5SffDQ6lGBo/видео.html&feature=share
@@alexpmoI own 4 Subarus currently and would love to see a video with clarity on the battery drain issues related to hatch being open and I’ve also heard it’s related to the key fob. If you’ve already done a video on this please let me know here and I will look it up to watch!
great video! I have a question, do you know what the tint percentage is?
What about plate fee?
That's subject to the state you live in. Here in KY it's 77.50
Hi Alex. How can I copy/clone the key fob for my 2020 Forester? Thanks.
Can anyone recommend a wireless carplay for a 2022 ascent for android, having to plug my cord in and losing connection is driving me crazy
Insane a modern car doesn’t come with wireless phone connectivity.
@suspicionofdeceit I should have gotten the 2023 which does but they wanted 3k more, but yes I agree
@@davidshirley6850 I have the 22 Crosstrek and it doesn’t have wireless CarPlay either, lame.
Great video, as always. I am wondering what you think about extended warranties. Are they worth the money?
The Subaru dealers in my area are offering a 10-year warranty that they say is directly from Subaru, and it covers everything except for wear and tear items like tires and oil changes. Thanks again for the videos. As a new Crosstrek owner, I have learned a lot from you. Thank you!
NEgotiate the cost of said warranty. THey will start over 5k but you can get one for way less. IF are sure you will keep the car it May be worth it.
The content of your videos is really good. Loads of information which is really helpful to current or potential Subaru vehicle owners.
The only thing that makes the quality of your videos suffer, is the constant swaying back and forward while filming. Really annoying and makes me not want to watch till the end...
A walk around is good, a move in for a close up is good, but NOT the constant back and forward motion.
Hi Alex, Thanks! How does out of state buyer works with your dealership?
Thank you Alex very informative. Question for you or the group. I saw on your window sticker and a window sticker of a Crosstrek here in PA that you have to talk to the dealer for the price of Starlink. I have been cross shopping for my wife and when I pulled the window sticker for a Forester it’s included. The Forester being a 2023 the Crosstrek a 2024 are they making a change in 2024 or is it by model?
Where are you located I will drive to buy from you?
Louisville, Kentucky
A note on the tinting. Usually the tint already on the back windows (known as privacy class in Australia) does not have any UV protection which is the reason I get my windows tinted
Two fees you didn't mention. Chip Shortage Fee and Gas Surcharge Fee. Did you guys see these during Covid?
Where is your location?
My local dealer did have window tinting added in on my 2023 Forester Premium which actually can make sense in New Mexico’s unforgiving sun! But they let me delete it as I was getting it done by the same people who did my 2020. They use excellent products that I now have experience with. I also ended up with a few Subaru OEM things that were already on the Forester they snagged for me off the pipeline. No biggee - they were nice to have and with VIP pricing also a win-win!
Alex, let your subscribers know that every automobile Dealership gets an additional 4% kickback per vehicle from the manufacturer.
Heheheheh you just did! Is that the “holdback”? That’s the one I know of, but I thought it was in 2 parts and ran about 1% total at Subaru.
@@mjc63 Toyota pays their dealerships 4% cash back
@@Doc1855 nice
Dealer processing fee is a bogus. That's part of the dealer overhead, you should never pay that. Bring a sharpie when you negotiate and cross out fees you don't want to pay. The 2 best negotiation tools are a sharpie and to walk out.
New one is a $50 Supply Chain Hardship Fee.
Love your videos. The first place we went to for an Ascent wanted to charge us:
$99.95 Subaru Starlink
$695 Clear Shield Pro Package
$3150 SAS 7yr/100k Gold Plus Plan
$1050 SAS 3yr/Maintenance Plan
Are these normal items to add?
The $100 for 3 year Starlink is well worth it and definitely a must have imo. My new Subaru will be used as a secondary vehicle and it comes with a lifetime powertrain warranty from the dealership. So I rejected everything else. If you will be putting a lot of mileage on it, you might put those extended warranty plans to good use. If not, you can skip it. It all depends on you and how you will use your vehicle.
@@boombastik3584 I agree. I was glad to get the 3 years for that price. I've had my Ascent almost 3 years now but never used Starling once. Still, in case of a serious accident where you're not able to call for help yourself and you're in a little traveled location, it will get help to you..
Those are voluntary. I took the gold plus plan.
Gases all behave the same with temperature and pressure. Having 100% nitrogen is useless. But, I want air in my tires, because if my car goes underwater, I can use the air in my tires to breathe. If it is all nitrogen, I'm dead.
Really, how are you going to get to the tire stem underwater, open it into your mouth to breathe, then stay underwater for a while to hang out? Why not just surface if you go into water, why go for the tire stem first?
lol😂😂😂
Someone’s been watching James Bond movies…..
If it’s taxable it’s negotiable.
Sadly Dealerships bend over their “Valued Customers”, and have a Greedy grin while they’re screwing everyone they can.
We have to drive at least 5 hours round trip just to get a decent deal. If not then the dealerships in the Wenatchee, Washington area will SCREW all the customers
You left out doc fees, never pay those!!!
I live on Maui, and there is a monopoly as there is only one car dealer of each brand. There are a lot of "dealer markups." One guy at another dealership from the one I purchased my Subaru told me that he had to make a livinfg SOME way. I own a 2022 Subaru Forester Limited. Luckily, Servco Subaru follows the correct charges. They're very honest. They have dealerships on 4 islands.
Air is already 70% nitrogen.
78%!
@12:13 I was almost sad I'd lose my turtle 🐢
😂 🐢
If higher cost of living states like CAL and NY ($85 and $175) respectively have docs fees under $200, then other lower cost of living states that have higher doc fees are just ripping us off!
Here's what the scam artists at the Windsor mazda dealership add to their new cars to jack up the price: "Etching, Nitro, Wheel Locks, 10-Year Rust Module, Paint Sealant and Fabric Protection." Adds about five grand to the price. Hey, the local Suburu dealer adds a "green package" that includes the nitrogen in the tires, that's a $400 add on.
Dealer processing is NOT a normal fee, at least not in the places I have bought cars. I have never paid it. Years ago, they used to charge a dealer prep fee but Consumer Reports found that there was an allowance for that in the dealer invoice. Prepping the car and doing the paperwork is a cost of doing business. Do you get charged a paperwork or preparation fee when you buy furniture or appliances? Once, a dealer F&I person (finance and insurance) handed me a contract with a $50 paperwork fee. I refused and said I would go elsewhere. It was taken off. You should know that the sales person and the "sales manager" are not the only people who are trying to maximize profits for the dealer. Look, they need to make a profit to continue to exist, but it can be done in a better way. I liked the previous videos, but this one, although it offers some good tips about fees to avoid, I think seeks to justify other fees.
either way if you pay msrp youre paying to much. every dealership has to make a profit somewhere. so msrp is a sneaky price
Two luxury car dealers in Portlandia are pulling these stunts with used cars as well. One dealers is installing Stargard security and marking up the price by $695 whether you want it or not; the other luxury dealer is not only adding on Stargard, they are also adding “interior and exterior coatings” for a total of $1,695 extra. That’s the sort of thing I’d expect from a high-volume domestic dealership that has a huge ad budget, not a luxury brand! (Needless to say, Zi’m not buying from those dealers.)
Fees always have to be disclosed. If a buyer is too dumb or lazy to read the paperwork, they deserve to pay them.
We have needed a new car manufacturer to come in and crush all the too big to fail car manufacturers for the last two decades. Do you think we have forgotten about “too big to fail”. We pray continuously for a new car manufacturer.
The Democratic Party lost the vote when they blocked other manufacturers from coming in.
Man. I'm just gonna buy a Tesla.
The "rear bumper cover" is an example of a ripoff charged by the factory.