Have buyers been paying dealer add-on fees?

I can tell you I didn't pay any of that on my MSRP 2005 prius, but I know you are asking about the 2006 models.

As for dealer prep, did they change this portion of the sticker for '06, or does the different wording allow them to charge for it?

 

Break Break...ahh... thats a negative good buddy.....

 

My dealer charged a $295 "etched glass" security add-on that is worth $0 in my opinion. I paid $500 under MSRP so I effectively got the Prius for $200 under MSRP. There was a $50 "Title and Registration Processing Fee"... but I think that is standard for most (if not all) new cars in this area.

For my 2nd Prius... the same dealer refused to go under MSRP... but also agreed to not add any "etch glass" or anything else. Hence... it will be $200 more than the one I bought this week. I will take delivery of that one after Jan 1st.

It sure seems strange paying full MSRP for a car. I suspect by this time next year... the supply will catch up and they will be available discounted like other cars... unless fuel prices go crazy again.

/Jim

 

That's $903 worth of insult. Don't pay a penny of it.

Know what the "holdback" is? It's part of the dealer's normal PROFIT, and therefore is already included in MSRP. So this EXTRA holdback is really a markup.

I believe it says on the Toyota website that buyers get a full tank of gas. If they're charging $10 (@, say, $2/gal), they're charging you for 42% of the tankful.

And yes, it's all negotiable. But I'd go elsewhere.

 

Don't pay a penny more than MSRP. Some places will give you $500 below via Costco discount. Some dealers have several new Priuses on the lot. They might be willing to negotiate. Especially after Jan 1st, they still have cars on the lot. Call around.

 

You should NOT pay for their advertising! They should give you the tankful of gas, though I would nopt quibble over ten bucks. If the "holdback" is a rebate from the factory to the dealer, it means Toyota is giving your dealer $434. By what possible logic could they use that as an excuse to charge you another $434????? As noted above, dealer prep is included in MSRP.

For my '04 I paid MSRP plus a "document fee" of $149 and I paid the taxes and fees, which the dealer passes on to the government. There is no reason to pay more for an '06 (except that, obviously, MSRP is higher).

As Jack noted above, all that stuff they want to charge you is nothing but a dealer mark-up above MSRP. Don't pay it unless you have so much money that you simply don't care, and you want the car that badly.

 

One of the reasons I made the Prius-Calculators was so I would be able to identify "surprise" fees:
2005-Model-Year-Prius-Calculator
2006-Model-Year-Prius-Calculator

 

I have my quote. Yea the floormats are a must buy, but only $45 doc fee, which I find very reasonable seeing as I am paying $700 under MSRP for my 06.

 

I got this info about TDA from the top ten dealer scams section on carbuyingtips.com:
Scam #1: The "Double Dip Advertising Fee" Scam

How the scam works: Dealers slip in an advertising fee on the vehicle contract. Cars are no different from any other product so it is ok for the advertising expenses to be built into the price of the car. So you ask, why is this the #1 scam of 2005? Most of the time, if this fee is added on to the vehicle purchase contract, you have just allowed the dealer to "double dip" and charge you for advertising twice. If you look at the factory invoice, in most cases, there will be advertising fees on it. The dealer has already taken this into account when negotiating your purchase price. Now, they are charging you again and making themselves pure profit.

How to avoid the scam: Have the advertising fee removed from your contract. If the dealer claims that the factory doesn't charge them an advertising fee on the invoice, make them show you the invoice. If there is no fee on the invoice (unlikely) then it is OK for the dealer to charge between 1% and 3% of MSRP for an advertising fee. Keep in mind that if the fee is not charged by the factory, it is 100% negotiable just like any other part of the deal. Unfortunately, advertising fees that appear on the factory invoice are considered part of the dealer cost and are not negotiable.