processing/doc fees

Tori Zinger

What's the best way to explain the processing/doc fee to a customer? Especially a customer who is unhappy about the idea of paying it?

Ricky Patrick

We used to say it paid for the people who processed their paperwork after purchase. We also said it covered mailing fees and office supply cost.

But I always had the best reaction by saying "Dealers try to explain what this fee is, and honestly it's just built in markup. It means we can sell the car at a loss and still have designated money to pay the salesperson, finance person, and fund the boss's retirement."

Tori Zinger

I really like both of these responses. I agree, Dealer Guy, they can get really high. The dealership where I worked had a $495 doc fee. I always hated having to explain it. 

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