7 Fees to NEVER PAY When Buying a Car

Step-by-Step Guide: How to Avoid Unnecessary Fees When Buying a Car

1. Understand Manufacturer Suggested Retail Price (MSRP) Inclusions:

   • Watch videos on negotiating the out-the-door price to grasp the concept.
   • Note that fees like Destination Handling or Processing should be included in the MSRP.

2. Identify and Avoid Unnecessary Fees:

   • Be wary of separate line items for fees like Freight, Dealer Prep, or PDI.
   • These fees are often unnecessary and can be negotiated off the final price.

3. Dealer Prep Fee Negotiation:

   • Dealer prep fees should be covered by the manufacturer for new vehicles.
   • Negotiate to remove any dealer prep fees from the final price.

4. Understanding Additional Fees:

   • Look out for unclear fees like "pppa" and negotiate to remove them.
   • Refer to resources like CarEdge for examples of fees to push back on.

5. Destination Fee and Reconditioning Charges:

   • Destination and reconditioning fees should be included in the vehicle's asking price.
   • Avoid paying these fees separately; they should be part of the overall cost.

6. Beware of Upcharges and Additional Dealer Add-Ons:

   • Dealers may try to upsell products like window etching, paint protection, or Carfax reports.
   • Negotiate these add-ons or consider removing them from the deal.

7. Question Dealer-Installed Accessories and Packages:

   • Challenge the necessity and cost of packages like Safety and Security.
   • Negotiate the price of dealer-installed accessories to avoid overpaying.

8. Understanding Doc Fees:

   • Doc fees are common nationwide and are harder to negotiate.
   • Consider buying from sources like CarEdge that do not charge doc fees.

9. Be Prepared to Negotiate:

   • Don't hesitate to negotiate fees that seem unnecessary or overpriced.
   • Remember that dealers may be willing to adjust fees to close the deal.

10. Final Check and Decision-making:

    • Review all fees on the worksheet carefully before making a decision.
    • Ensure you are comfortable with the final price and the breakdown of fees.

By following these steps and being vigilant about unnecessary fees, you can save money and make a more informed decision when buying a car.