Hell, we should be happy it is only 500 since the demand is so high. I have one of the top ford dealerships in the nation here and they charge up to 10.000 over sticker for the new Mustang GT 500!!!!
They better get it while they can, 'cause when gas shoots up they'll be begging someone to take them off their hands. Anyone that pays that is an idiot. There is no resale value on those cars with everyone and their brother already having bought one.
Just remember that this is a first year (in the USA)car with a lot of buzz,and a lot of interested parties. If you threaten to cancel, all you are doing is losing your place and opening it up for the next guy. You can configure these cars till you're blue in the face, and then cancel it, And it will go to the next guy on the list. Remember, even if you ordered the options you want and the body panels in Blue, if you cancel and the guy who is 2 places behind you ordered the same configuration in Yellow, they just pop off the panels and replace with the Yellow ones (it takes under an hour to change the color of a SMART. I had my cabrio for 3 years, and changed colors 4 times)
And besides $500 is nothing as far as dealer markups go. I am also recieving a 2008 Dodge Challenger srt8 this year and they have a markup of more than $9000. It's all about supply and demand, if you want to be the first on your block to have one, than expect to pay a little (and $500 is really peanuts) more for it.
Mr. Weaver... Just who do you think you are spinning for?
All the dealers in regulated states seem to manage on the $35 to $150 doc fees
None of the Smart Center Dealers are new start ups .... They are all tied to other product lines and are banking on increased growth of this brand over next 3~7 years... (their construction cost and other expenses are amortized over multiple years too)
Your example or model is not real world... much too simplistic
Most have zero advertising costs... Most have zero hot lead costs.... and ALL enjoy 100% MSRP+ sales--- so zero inventory aging costs...
All can compete for up-charged extended warranty (a lot of profit there)...
All can sell dealer add on items and service... (yes, a but more profit potential)
As a previous (or current) dealer you should know that Service makes more money then sales... IN fact warranty work is a source of profit too....
I reject your simplistic 7%~9% time units sold as indicative of Starving Dealers loosing money...
Most ethical dealers will only up-charge the dealer prep to 100% over cost...
In this case the Pre Delivery Inspection (PDI) is a 7/10 flat rate hour item... According to PAG So, at $100 flat rate shop hour--- that is $70 real cost.. Thus $140 would be 100% profit... And therefore $499, $599, and now a Orlando FL report of $799 represents an unethical practice...
Docs fees are a legitimate cost...No reason not to pass to the buyer...
But again...Ethically the buyer should be protected by consumer advocates and State's attorney generals so they get value for what they pay...
If the real cost to record a sale, complete state regulated paperwork, receive and disburse taxes, receive and disburse Tile doc fees, registration docs fee, and create temporary vehicle license is under two hours at $15~$35 labor, then to charge several hundred for this service is fraud...
In the states (like ours here in Texas) that have strong consumer protection laws...these fees are limited to 50%~150% over actual
As a Army soldier I lived in dozens of different states... I can assure you some states let car dealers fraud the citizens out of Billions a year... Very little to none of it gets into the hands of the sales person or back office secretary doing the hard work...it is mostly pure profit and a LOT of it finds it's way into politicians pockets
Be happy to pay your $500 and nothing more. Form a great relationship with your dealership and the $500 will seem like a bargin.
Seems that dealers in the rest of the country will survive with $50 or so in these costs the Florida swindlers are bilking their customers for. My dealer will be just as friendly to me with my $55 doc fee as the Orlando one with their $799.
Make it short and to the point. No Rants.
Short of legal action by Penske in each state, I don't think he can stop it.
Typically, a manufacturer or distributor has leverage over dealer's with a margin that is held back. For example, let's say the base price is $15,000 and the cost to the dealer is $13,500. An additional $500 may be held back and paid in arrears on a quarterly basis, etc. This is what enables manufacturers to have some control over dealer appearance (replacing showroom tile, etc.).
Typically, a manufacturer or distributor has leverage over dealer's with a margin that is held back. For example, let's say the base price is $15,000 and the cost to the dealer is $13,500. An additional $500 may be held back and paid in arrears on a quarterly basis, etc. This is what enables manufacturers to have some control over dealer appearance (replacing showroom tile, etc.).
smart is taking $50 per lead for the reservation system from the dealers. There are no advertising costs for the dealers at all. Signage is leased, not purchased. There is no dealer "holdback" on this deal, and no CSI payments.
I would guess that those of you who want to take up torches and lambast your dealership have never run a business.
We can all jump to conclusions here. While we're enthusiastic about Smarts, their long term success will be impacted by good faith and fair dealing practices. Some folks will pay mark-ups for the pop of being the first on their block; but what goes around will come around.
Caveat emptor and don't be afraid to walk, contact PAG, or post. I'd be ticked too over last minute games like that. It's this kind of thing that gives car dealers in general a slimy reputation.
We can hear all the bulls*t we want from PAG apologists and dealer shills. What REALLY burns me is that PAG has the power to easily stop us buyers from being cheated like this and THEY CHOOSE NOT TO HELP US.
REMEMBER when we reserved PAG promised list price- NO extra markups- and if you think it's then ok to see the dealers go and add bogus fees- YOU my friend are short of an ethical compass.
Car dealers are sleazy garbage - that's a given- I don't expect anything different from them- it's PAG I hoped for better from!
Hi All
I went in person to Ray Catena dealership today and spoke to the salesmen and then the sales manager and tried to negotiate their onerous policy for backdoor surcharges,they would not budge.The cost would be the same for a $100,000 car or the $15000 smart. I told them that many of us felt betrayed and are angry, they took it with a grain of salt.I then contacted smart usa cust service and tried to change dealership, they can not do this at this time,however since I am a New York resident I can and did change my address closer to a dealer in Long Island who will only charge me $45.00 for DOC. fee and no other added on fees I know that this is is only a solution for me but anyone who is concerned can send a complaint to: customer-service@ib-smart.net I am told that PAG is aware of the problem and that they may be trying to do something about it, remember its the squeeky wheel that gets the oil.
I paid $160 doc fees for a car I purchased in November, I can live with that. BUT then I find out my smart dealer wants $400 to do the same paperwork, give me a break. My smart will be delivered to another dealer.
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they took it with a grain of salt.I then contacted smart usa cust service and tried to change dealership, they can not do this at this time,however 
since I am a New York resident I can and did change my address closer to a dealer in Long Island who will only charge me $45.00 for DOC. fee and no other added on fees
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