Letter to Orlando smart center

[kwagar]

With any luck I will take delivery this afternoon or tomorrow morning of my smart from the Orlando dealer. While I am resigned to the rediculous "prep fees" they are charging I have decided to give them the following letter upon completion of the deal. While I doubt it will have any impact it made me feel better to write it. If any other Orlando customers want to provide similar comments to the dealership I don't see what it can hurt.

February 1, 2008
To: Smart Center Orlando
Cc: Smart USA

From: Ken *******-Smart Purchaser.

Julie, Judson et al:

By the time I give you this letter I will hopefully be a proud and excited smart car owner and some of the pain and frustration of the long wait and poor communication from smart USA and from your dealership will begin to fade away.

However, I would be remiss if I did not express my strong objection to the dealership prep fees of $799.00 you charged me as part of the purchase of the car.

I have heard your reasons and justifications for this charge which I consider to be a rip-off and would like to share why I am upset with the fee.

1. The cars are being sold at MSRP. While it is good news that the dealerships are forbidden to sell above that level it is normal in the car buying process to be able to negotiate the price of the car to a point below MSRP and this opportunity does not exist with the smart car.
2. The Orlando smart center is charging the highest fees of any smart dealer in the USA and all dealers face the same limits on MSRP and profitability that Orlando faces. Your fees are more than $200 higher than Palm Beach and $300 above any other dealer. In many cases your fees exceed other smart dealers by amounts in excess of $500.
3. I had no choice in the selection of you as my dealer. I was assigned to you based on my zip code and was unable to choose a dealer based on the overall best negotiated deal, service etc. I was forced to use you and am therefore being forced to pay a non-competitive dealer prep fee.
4. To this point in time your service to early reservation customers and your communications to us regarding the status of your dealership opening and the availability of our cars has been average at best. So in my opinion you have done nothing for me to justify my paying you more than I would pay another dealer.
5. You have me “by the short hairs�. I want the car and I want it now so I have no choice but to pay your exorbitant fee.

My hope and I believe your obligation is that you will demonstrate over time a commitment to customer support, customer service, follow-up communication and smart car service that substantially exceeds what is normal and expected from a dealer. The only possible return for me for the fee is to receive service above and beyond that makes me feel better about your operation and in some small way justifies the difference in your fees versus others.

Frankly I don’t hold out much hope that this will be the case but feel that you should clearly understand my frustration and know what you might be able to do to justify your fees and move me from a buyer who feels he has been taken advantage of to a customer that feels good about his relationship with his dealer and speaks well of them to other potential buyers.

I have listed the fees charged by smart dealers around the country below for your review and consideration. I hope you feel good about being first on the list!!!!!!!!!!!!
Sincerely,

Ken ******
Winter Haven, FL


From Highest to lowest dealer rip-off add on profit. Most are called "doc fees", some are called prep fees....even a notary fee!!!

Orlando Fla- 799.00
Palm Beach Fla- 595.00
Louisville KY- 499.25
Ft. Lauderdale Fl (Westin)-499.00
Orange Park Fl- 479.00
Chandler Az.-400.00
Va Beach, Va- 399.00
Carey, NC - 398.00
Hartford Ct- 299.00
Edison NJ-295.00
La Vista NE-259.00
Bedford Oh- 250.00
Columbus Ohio- 250.00
Bloomfield Michigan - $180
Both Chicago dealerships-150.00
Indianapolis-150.00 (raised from first delivery which was 95.00)
Cherry Hill NJ- 95.00
9-10 Ca dealerships-55.00
Seattle Wa.- 50.00
Roundrock Tx- 50.00
McKinney, TX- 50.00

[eqwalker]

I would also mention that I would make sure that this information would be posted so others would see this and be aware of this high price. Mine from Tulsa, OK was only $89.00

[pelkface]

Very well done! Thanks for speaking up for those of us assigned to this dealer. I will not pay them such a high fee and will cancel my order if need be. If your letter generates further discussion with them, perhaps you can mention that they have lost at least one customer. I plan to tell them in person soon. I respect your decision to buy and wish you the best of luck with your new car!

[Nicholas]

Good luck with your new car and thank you for your letter. If and when our SMART arrives, I understand our dealership is to be Jacksonville, Florida. Our expected delivery is suppose to be the second half of 2008. I blame the dealerships as well as our elected officals for this farce...

[pbafirst]

If anyone was wondering, the dealer prep fee for smart center sarasota is
$489.50. This fee was non negotiable. However they were well aware of the hornets net this issue has stirred up.

[Carnut]

It's really sad, but better than having to pay $3 to $5K over MSRP which could have easily happened with this roll out. Enjoy your baby Ken and watch the traffic on 27.

[jwight]

Ken, good approach; I suggest you fax it to the smart brand manager before going to the dealership. Completely up to you, but there's nothing to lose and you might gain something. Unless the fee is mandated by local or state law, it is negotiable, whether they want to or not. If they're not willing to offset the MSRP or the doc fees, then push for offsets in goods or services - floor mats, cupholder, etc. and or/oil change or parts to the tune of whatever amount feels right to you. Hopefully you'll be able to get something out of the deal. Keep reminding them they hold the top spot on the forum dealer fee "Wall of Shame."

[Carnut]

Originally Posted by jwight

Ken, good approach; I suggest you fax it to the smart brand manager before going to the dealership. Completely up to you, but there's nothing to lose and you might gain something. Unless the fee is mandated by local or state law, it is negotiable, whether they want to or not. If they're not willing to offset the MSRP or the doc fees, then push for offsets in goods or services - floor mats, cupholder, etc. and or/oil change or parts to the tune of whatever amount feels right to you. Hopefully you'll be able to get something out of the deal. Keep reminding them they hold the top spot on the forum dealer fee "Wall of Shame."

Unfortunately Florida law stipulates that they MUST charge EVERY buyer the identical fee, so once they deliver their first unit it is fixed in stone.

[jwight]

Originally Posted by Carnut

Unfortunately Florida law stipulates that they MUST charge EVERY buyer the identical fee, so once they deliver their first unit it is fixed in stone.

Understand, but they aren't prohibited from giving you some goodies to offset the doc fee. Go for it and let us know how it turns out.

[BeSmart]

Originally Posted by Carnut

Unfortunately Florida law stipulates that they MUST charge EVERY buyer the identical fee, so once they deliver their first unit it is fixed in stone.

Nothing stops them from refunding excess charges to earlier purchasers, to achieve a lower doc fee, and keep their customer base. (There was one forum member who received a refund for being overcharged)

Nothing except greed?

Their policy seems very short-sighted.