Dealer Processing Fee

Derrick Woolfson

I was at a MADA (Maryland Auto Dealers Association) meeting today, and one of the items we discussed was the processing fee. What is alarming, is that our staff is not telling the customer the correct lingo for what the processing fee takes care of, which is (and this is just an example!) "A fee that the dealership is allowed to charge in connection with services for which the dealership is not otherwise compensated." And the notion, that we need to have a brochure or documentation to offer the customer if s/he were to ask. 

How do you handle this on the dealer level? I know it varies state to state - i.e. whether the Dealer Processing Fee is capped, etc. But this is a something that we - as dealers - have to pay attention too. If I were to go to my team and ask them what it is I bet I would get different answers. 

 

Chris K Leslie

Is this different from a standard Doc Fee? 

Derrick Woolfson

Chris, no - it is the doc fee/dealer processing fee - for MD, the most we can charge is $300 - apparently, some states have caps, and other states do not. Something I did not know. And in MD, apparently with the fee being $300 it is one of highest doc/processing fees with states with caps.

Victoria Dillabough

I actually find we don't have to explain it often... customers rarely ask what dealer fees we have. 

Derrick Woolfson

Interesting, for us - it is random too, but definitely want to make sure we are saying the right things. 

Mark Rask

We don't have to explain it often 

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