Dealer handling fee (in addition to standard $1,100 handling and delivery fee)

NewGuy

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Prior to ordering I talked to the sales manager. He put in writing that all vehicles on their lot have VIN etching as they come off the truck. There’s a $200 fee if I want the VIN etching insurance, but I don’t have to pay for that if I don’t want. The insurance provides some kind of coverage if the car is stolen and not recovered.

I mention that because “the glass is already etched” may not mean it’s something you have to pay for.
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JohnnyForensic

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Good afternoon!
My MME GT has been delivered to my dealer. I'm pretty excited!

Now, when I asked for a final price breakdown, I'm getting 3 additional lines:
  • Pro Pak = $499
  • Vin Etch =$399
  • Proc / Doc Fees = $795

I knew what Vin Etching is - although $399 seems obviously far off... - so I asked my dealer about the other 2 things:

Pro Pak: "Pro Pak is our interior/ exterior paint and fabric protectant that is applied to all vehicle. "

Proc / Doc Fees: " Proc/doc fee is our Dealer Handling Fee. Dealer handling fee of $795 is a charge that all customers and vehicles get. There's no negotiating on dealer handling fee. "

It seems like an easy additional margin without any rationale at all from the dealer. But I'd like to double-check here.
  • Would you say this is a common thing?
  • If not, what would you advise me to do?
Thank you!
Processing fees are bullcrap, but they all have them. If you have time to get X-Plan, do that first, but if not, that’s a fairly normal number depending where you are. For example, in Northern Virginia, that would be a standard price on that. I’ve seen them here as low as $699 and as high as $1499. It’s just pure profit for them, and they’ll also charge you the DMV fees anyway on top of it.
 

RickMachE

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I was quoted $85 documentation fee and no other hidden or undisclosed fees (apart from standard delivery and DMV fees). I got that in writing. I do not have X-plan. Of course we’ll see what happens when the vehicle shows up, but I plan to hang on to the email I received from the salesman quoting these fees until I receive the final bill.
If you're paying MSRP, using X-Plan saves a lot more than a membership fee...
 

Mach1E

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Yeah but I can see it from the dealer’s perspective too. It used to be 30 days waiting period but I think they changed it to 90 days to try and stop last minute signups because of the Mach-E.

It’s sort of like with those credit card signup bonuses. They were put in place to induce people to open a new credit card, but people figured out how to game it and open/close a preposterous amount of cards just for the bonus so they had to change the rules and now most banks limit people’s ability to do this.

Same thing with X-Plan, I don’t think they appreciated that people who had zero interest in Mustang Club of America were joining just for X-Plan and then cancelling membership and never being involved in the club but doing it entirely just to get the discount.
“They” didn’t appreciate it?

They who?

The only “they” in this situation I can think of is possibly a shortsighted dealership.

“They” MCA gets more members and money.

“They” Ford gets to sell more vehicles because it keeps them price competitive and keeps dealers from pricing some people out of the market.

“They” the good dealers participate in X plan, sell more vehicles and have happier customers.

Then there are the rest of “they.” I don’t give two squirts about those they.

X plan is less than 2% off msrp. No one is getting taken advantage of. This is absolutely nothing like people signing up for multiple credit cards and cancelling. In those cases, CC companies lose money. Ford makes the same $$ and the dealer still makes money at X plan.
 

Mach1E

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Prior to ordering I talked to the sales manager. He put in writing that all vehicles on their lot have VIN etching as they come off the truck. There’s a $200 fee if I want the VIN etching insurance, but I don’t have to pay for that if I don’t want. The insurance provides some kind of coverage if the car is stolen and not recovered.

I mention that because “the glass is already etched” may not mean it’s something you have to pay for.
How is this possible? Do they have a guy sneak on the train to etch the VIN on just this particular dealer’s vehicles?

Pretty sure he lied (in writing). But hardly the first time a car dealer lied.

Although the “as they come off the truck” may be accurate as it may be the first thing they do.

You can get an etching kit on Amazon for $19.99.

https://www.motorbiscuit.com/vin-etching-scam-decade/
 


NewGuy

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How is this possible? Do they have a guy sneak on the train to etch the VIN on just this particular dealer’s vehicles?

Pretty sure he lied (in writing). But hardly the first time a car dealer lied.

Although the “as they come off the truck” may be accurate as it may be the first thing they do.

You can get an etching kit on Amazon for $19.99.

https://www.motorbiscuit.com/vin-etching-scam-decade/
Vehicles get to the dealer and they etch the windows. The customer can choose to pay $200 for the VIN etching “insurance”. If the customer doesn’t want to pay for it, the windows are still already etched.
 

connoisseurr

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For those who have discussed the use of X-plan, can you point me to the pricing an incentives for using X-plan? The www.fordpartner.com website shows a sample invoice of the 4% off MSRP + admin fee. What about what else the dealer can charge, regarding dealer processing fee, etc.? Can't seem to locate that.
 

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For those who have discussed the use of X-plan, can you point me to the pricing an incentives for using X-plan? The www.fordpartner.com website shows a sample invoice of the 4% off MSRP + admin fee. What about what else the dealer can charge, regarding dealer processing fee, etc.? Can't seem to locate that.
Mustang Mach-E has a different X-plan formula than typical. The plan price is 98% of the adjusted MSRP (and includes the destination and delivery fee), plus a fixed amount of $275 for plan administration.

Beyond that, the dealer may add up to $100 in fees that are not value-adds for the vehicle.

So as an example:

MME MSRP: $50,000
Paint color upgrade: $500
Other factory options: $250

Adjusted MSRP: $50,750
Destination and delivery: $1,100

Total MSRP: $51,850

X-Plan: $51,088 (calculated from (51,850 * 0.98) + 275)

Now you can add in dealer "value adds":

Front window tinting (dealer value-add): $200
Window VIN etching (dealer value-add): $3,000

Cash price: $54,288 (calculated as 51,088 + 200 + 3,000)

In many states, here's where you subtract the trade-in value:

Trade-in value: $2000

Subtotal: $52,288 (calculated as 54,288 - 2,000)

Now you add in taxes and fees... Again, these are just examples, but notice that the dealer cannot add more than $100 here:

Sales tax, registration, title, plate, waste tire, other municipal/county/state fees: $4,000
Dealer doc fee: $100

Sub-total of amount to be paid and/or financed: $56,388 (calculated as 52,288 + 4,000 + 100)

Now you can finally subtract out any down payments, including incentives from Ford... And then anything remaining is what you need to pay and/or finance.
 
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Jeffvisor

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Good afternoon!
My MME GT has been delivered to my dealer. I'm pretty excited!

Now, when I asked for a final price breakdown, I'm getting 3 additional lines:
  • Pro Pak = $499
  • Vin Etch =$399
  • Proc / Doc Fees = $795

I knew what Vin Etching is - although $399 seems obviously far off... - so I asked my dealer about the other 2 things:

Pro Pak: "Pro Pak is our interior/ exterior paint and fabric protectant that is applied to all vehicle. "

Proc / Doc Fees: " Proc/doc fee is our Dealer Handling Fee. Dealer handling fee of $795 is a charge that all customers and vehicles get. There's no negotiating on dealer handling fee. "

It seems like an easy additional margin without any rationale at all from the dealer. But I'd like to double-check here.
  • Would you say this is a common thing?
  • If not, what would you advise me to do?
Thank you!
My dealer tried the VIN etching I saw it on the contract told them I didn't want it and they took it off. which means they did it and removed the fee? What is vin etching?
 

macchiaz-o

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My dealer tried the VIN etching I saw it on the contract told them I didn't want it and they took it off. which means they did it and removed the fee? What is vin etching?
The only thing it does is make the windows less attractive to thieves who would steal the vehicle and expect to be able to sell its glass. ? I'm not sure who would buy glass from thieves?
 

connoisseurr

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Mustang Mach-E has a different X-plan formula than typical. The plan price is 98% of the adjusted MSRP (and includes the destination and delivery fee), plus a fixed amount of $275 for plan administration.

Beyond that, the dealer may add up to $100 in fees that are not value-adds for the vehicle.

So as an example:

MME MSRP: $50,000
Paint color upgrade: $500
Other factory options: $250

Adjusted MSRP: $50,750
Destination and delivery: $1,100

Total MSRP: $51,850

X-Plan: $51,088 (calculated from (51,850 * 0.98) + 275)

Now you can add in dealer "value adds":

Front window tinting (dealer value-add): $200
Window VIN etching (dealer value-add): $3,000

Cash price: $54,288 (calculated as 51,088 + 200 + 3,000)

In many states, here's where you subtract the trade-in value:

Trade-in value: $2000

Subtotal: $52,288 (calculated as 54,288 - 2,000)

Now you add in taxes and fees... Again, these are just examples, but notice that the dealer cannot add more than $100 here:

Sales tax, registration, title, plate, waste tire, other municipal/county/state fees: $4,000
Dealer doc fee: $100

Sub-total of amount to be paid and/or financed: $53,388 (calculated as 52,288 + 4,000 + 100)

Now you can finally subtract out any down payments, including incentives from Ford... And then anything remaining is what you need to pay and/or finance.
Appreciate this information, but where can I find this on the ford partner.com website. I have a feeling the dealer I ordered my Mach-E through won't know crap about X-plan, let alone accept it. The more information I can walk in with, the better.
 

macchiaz-o

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Appreciate this information, but where can I find this on the ford partner.com website. I have a feeling the dealer I ordered my Mach-E through won't know crap about X-plan, let alone accept it. The more information I can walk in with, the better.
If your dealer has ever processed an X-plan purchase for any customer at all in the last few decades, this one will be no different for them. The X-plan price is listed on the invoice from Ford. Under X-plan rules, the dealer is required to show you this invoice, and to point out the X-plan price that is very clearly listed on it.

https://www.fordpartner.com/partnerweb/howitworks/how_it_works.do
 

macchiaz-o

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If your dealer has ever processed an X-plan purchase for any customer at all in the last few decades, this one will be no different for them. The X-plan price is listed on the invoice from Ford. Under X-plan rules, the dealer is required to show you this invoice, and to point out the X-plan price that is very clearly listed on it.

https://www.fordpartner.com/partnerweb/howitworks/how_it_works.do
From the rules:

Dealership Obligations and Rules
  • ...

  • The AXZD-Plan Pricing Agreement must identify the X-Plan price, the price of each dealer-added option, negative equity on vehicle trade, gifts, and any other allowable fees and taxes. A copy of the factory invoice showing the New Vehicle Purchase Program price in the box labeled or "X-Plan" and a completed, signed copy of the AXZD-Plan Pricing Agreement must be given to the customer.
 

connoisseurr

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ARK

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“They” didn’t appreciate it?

They who?

The only “they” in this situation I can think of is possibly a shortsighted dealership.

“They” MCA gets more members and money.

“They” Ford gets to sell more vehicles because it keeps them price competitive and keeps dealers from pricing some people out of the market.

“They” the good dealers participate in X plan, sell more vehicles and have happier customers.

Then there are the rest of “they.” I don’t give two squirts about those they.

X plan is less than 2% off msrp. No one is getting taken advantage of. This is absolutely nothing like people signing up for multiple credit cards and cancelling. In those cases, CC companies lose money. Ford makes the same $$ and the dealer still makes money at X plan.
My point wasn’t whether from the customer’s perspective this is right or wrong.

My point was why from the dealer’s perspective they might not want to honor what’s sort of a fan/loyalty discount for people who are neither and just read about some discount that they otherwise never would have heard of through some online forum.

Whether it’s a smart move on the part of the dealer is a different question. The deep shortage of Mach-E’s though is allowing for this kind of thing from dealerships. Easy to say you ‘don’t give two squirts’ but if you’re in the market for a Mach-E right now and want your vehicle right now, it’s not like the next dealership down the road has 5 Selects, 7 Rt. 1s, 14 Premiums, 5 GTs, and 2 GTPEs to choose from.
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