Dealer Documentation etc fees?

[MattECDNdealer]

As far as I know Canadians can't change the dealer they have their reservation with. I had inquired about it when someone wanted to move their reservation to our dealership because theirs wasn't getting back to them.

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[Bronco4lyfe85]

Gather 'round kids. I'm going to tell you a tale of car sales 20-odd years ago...

Car buying evolved with the advent of the information age and car selling was forced to adapt. Now that most people knew not just that there was an invoice, but the exact number! The sales staff were usually paid about 25% of the profit... well, after a doc fee and any other operational fees the dealer felt were incurred due to sales staff. If you've looked at new car MSRPs and invoices, you may have noticed there's not that much profit in a passenger car (not too much in our Broncos). There might not be any calculated profit left to take 25% of for the salesperson. What happens? They get what's called a "mini" which varies by dealer, but ranged from $1-200 per vehicle. Now, if you sold that car at invoice, then the dealership eats all that cost (out of holdback if the flooring fees haven't eaten that up). The salesperson sold on average 12 cars per month back then... 12 x $200 minis = $2400/month... what a lucrative business! Dealerships started getting fewer and fewer customers willing to pay anywhere near MSRP and rolled the fees they were taking out of the gross profit into the documentation fee. So, congratulations, you played yourself... as the meme goes.

If that grill costs about $2000--to make it proportional to the Bronco--you can bet that $30 of it is baked in like the enamel coating.

Imagine going to a cashier and asking for invoice on everything you buy? You'd save more money over your lifetime than doing it at the car dealerships if you could get it.