Monday, March 22, 2010

Dealer Fees

I have recently been asked, "why do auto dealers charge a dealer fee?" This originated back in the 1960's and 1970's when government regulation changes through the years required more and more documents/forms to be part of a legal sales transaction. The dealer fee was born to offset the cost of the extra office clerks that had to be hired to process the ever increasing number of forms. More on this later this week.

1 comment:

  1. Another reason dealer fees evolved is because manufacturers have significantly reduced dealer markup over the years - this is the amount between MSRP and dealer cost. Dealers would just like to their salespeople to earn a decent wage. In many cases, your salesperson who helped you all the way through the car buying process may only make $100 total on your transaction.

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