Is there a reason for a car dealership to add a fee instead of increasing a price in MD?

[Anonymous]

Does anyone have any idea why a car dealership would want to add a reconditioning fee to a used vehicle and lower the price? Do they pay less taxes on the transaction? I do not understand the logic otherwise.

[Anonymous]

They are trying to fool you - they will tell you you are buying the car for $9,500 (and add a $500 fee) rather than tell you you are buying it for $10,000.

Either way, just tell them you won't buy the car if they charge the fee. And be prepared to walk away.

[Anonymous]

My MIL told them that fee is their cost of doing business and she wouldn't be paying it, so they took it off. Worth a try.

[Anonymous]

Anonymous wrote:Does anyone have any idea why a car dealership would want to add a reconditioning fee to a used vehicle and lower the price? Do they pay less taxes on the transaction? I do not understand the logic otherwise.

Not sure about them paying less on taxes (you don't pay sales tax on fees in Md.) but they pay less on commissions and generally people might bristle at the fee but aren't as apt to try and get that reduced.

[Anonymous]

Anonymous wrote:Does anyone have any idea why a car dealership would want to add a reconditioning fee to a used vehicle and lower the price? Do they pay less taxes on the transaction? I do not understand the logic otherwise.

You're paying that fee for the convenience of buying at a dealership. They supposedly do a 120 point inspection (yeah, right) and give you a shitty warranty on it that they won't honor. But you pay for that convince, rather than getting on Craigslist or AutoTrader and taking the car to your mechanic for a $100 once-over to make sure everything is good. Then you pay only Blue Book or close to that, depending on how bad the seller wants to get rid of the car.

[Anonymous]

I think they do it for reasons like those stated above but also because it enables them to report a lower sales price to TrueCar and Kelleys and Edmunds and all the other price comparison sites, which steer business to them. Like others have said above, just refuse to pay the fee and walk away if they won't remove it. Two can play at that game.

Also, OP, do a search here in Off-Topic about new car purchases and the internet or email method (I can't remember the terms exactly). There have been two great threads with a ton of information and some excellent advice.

[Anonymous]

120 point inspection. bull shit.

I can kill 20 inspections just on the wheels and tires alone with out even thinking about it. Geting to 120 "inspections" is cake.

Negotiate your price. pay said price.

tell the dealer you will pay all your own taxes and tag fees. It means you will make a trip to the DMV to get tags and pay taxes

if a dealer tries it add on recondition fees, deal pep, ect. walk away.

when you buy food from a restaurant they don't add a "food prep fee" they wrap the entire cost of the menu item into the advertised price except tax/tip. Dealers need to do this as well.

if you are advertising a $25K car. that price needs to include everything but taxes/tags. You can look up the DMV numbers on taxes and tags.

I hate the dealer fees...

the other thing to do is when you negotiate you negotiate on the "out the door" price. IE the number that includes everything.