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."

Dealer Guy

In NY State the DOC fee is set at $75 but when I worked down south at a big Nissan dealer, as the ISD I was paid $50 on every DOC fee,which for them was $500. Some dealers are $600-800 - and that is PATHETIC GREED Tori! That amount is equal to the profit on most new car sales. 

What I say, if it comes up: Mr. Customer your paperwork is processed by 10 individuals here at ABC Motors once I leave this desk, and the $75 ($750 for the most greedy dealers) Dealer DOC fee helps subsidize the tedious efforts and attention to details required to properly process all your paperwork from your trade, the new car, dmv and all compliance paperwork by all the guys and girls in the back offices. I would not want their job, and despite the cost, it is the lowest in the nation and is set and established by NY State, so we must be in compliance.

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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