What is Non-Negotiable?
Most parts of a car purchase are negotiable. However, there are certain parts of the transaction which the dealer cannot negotiate with you. This does not mean that the dealer is being difficult or unreasonable. In fact, if you expect the dealer to bend, you are actually asking for something you cannot achieve and will only demonstrate your lack of car buying knowledge. That being said, if one of these items causes you trouble, you can always ask or try to achieve a concession equal from the price of the vehicle or some other item your are purchasing.
The parts of a car deal which are not negotiable are:
1. Sales tax. Call your Congressman. Call your Senator. Call the Governor. Call your Mom. But, if you live in a State that has Sales Tax, you have to pay Sales Tax on your vehicle purchase. There are also a couple of wrinkles concerning sales tax. First, you pay sales tax on the difference between the purchase price and the value of your trade in. So if you buy a vehicle that costs $30,000 and trade in a vehicle which costs $10,000; you will only pay sales tax on the remaining $20,000. Second, when you lease, you save sales tax. Sales tax on a lease is only calculated on your monthly payment - so you end up paying approximately 1/2 the sales taxes as compared with those who pay sales tax on the total purchase price. Third, and this one you won't like, you must pay sales tax on the manufacturer rebates. If you are purchasing a vehicle that costs $30,000 and there is a manufacturer rebate of $2,000, then you pay the sales tax on the full $30,000 and then deduct the rebate off the fully taxed amount. I know, it's not fair. You're right and remember, the dealer is being forced to collect that money for the State so don't get angry with the dealer.
2. Tag and title fees are not negotiable. They depend on where you live and the type of vehicle you buy or lease. Again, another fee for the government.
3. Doc fees are not negotiable. In some States, the "Doc" fee (which stands for the documentary fee a dealer charges) is set by Statute - e.g. New York and New Jersey. In other States, e.g. Georgia, the dealer sets their own Doc fee. This is an administrative fee the dealer charges to offset the cost of registering your vehicle, doing the title work, perfecting the lien on the title, etc. The dealer charges the same fee to each Consumer, regardless of which vehicle they purchase, their credit, etc. Doc fees will not be waived. If you have an emotional problem with paying the dealer an administrative fee, negotiate for that amount off the sales price - but remember, the Doc fee is not negotiable.
4. Lemon Law Fee is not negotiable. Most States will charge consumers a small fee, e.g. $2, which is collected to help administer the State's Lemon Law Program. Everyone who buys a vehicle will be paying that fee and it is not negotiable.
5. Emissions fees are not negotiable. If you are buying a vehicle that is more than 3 years old in the Atlanta Metro (the 13 Counties which require the emissions test), you will have to pay the cost of the Emissions test. Fees range from $10 to $25 and are set by the examining station.
6. Bank fees are not negotiable. These are fees usually associated with consumers with challenged credit. The lender will charge a bank or "discount" fee to the dealer if the dealer wants to sell the retail installment contract to the lender. This charge will be calculated into the transaction and will be paid to the lender. Unfortunately it is not negotiable. The dealer is not making any money on it - instead it is a charge the lender is passing through the dealer to the consumer.
7. Lease acquisition fees are not negotiable. Some leasing companies will charge an acquisition fee or bank fee when you sign a lease. Usually it is around $500. That fee is not paid to the dealer, but instead is a fee charged by the leasing company and unfortunately it is not negotiable.
8. Like acquisition fees in leases, "disposition fees" in a lease are also not negotiable. A disposition fee is a fee the leasing company charges the lessee upon the termination of the lease. This fee is used to help offset the costs of preparing the vehicle for resale, transportation to an auction, and the final inspection. If you purchase or trade your leased vehicle before the end of the lease, you can avoid paying the disposition fee. If you return the vehicle to the leasing company, you be charged the fee.
9. Mileage fees in leases are not negotiable. The leasing company will charge a per mile charge for miles driven over the maximum allowed by the leasing contract. This being said, there are two things you can do about mileage fees other than driving less. First, you can negotiate for more miles in your lease. Typically, it will cost 8 cents a mile at the beginning of the lease if you add it to the lease payment; and 20 cents if you go over the maximum allowed. Also you should ask the dealer whether any of the miles are refundable if you purchase them up front. Some leasing companies will refund you for unused miles. Secondly, if you trade or purchase your leased vehicle, you will not pay the mileage fee.
10. Warranty transfer fees. Some extended warranties and some new car warranties charge a fee if you want to transfer the warranty to the next purchaser. This is a more unusual situation with the recent trend of covering the vehicle and not the person; however, there are still some warranties which will charge the consumer if they wish to transfer to the next buyer. Remember, if you have an extended warranty and are trading or selling the vehicle you need to compare the amount of money the purchaser will give you with the amount of money you would receive if you cancel your warranty and get a refund for the unused portion.
If you found this helpful, tell me what you think?
