$500 'handling fee' buying a Prius?

Is this in addition to the tax they want to charge in Virginia because hybrids use less gas, so don't pay as much for the roads as other users? (By the way, when I moved to California in 1992 with my 1991 Honda Civic, I was charged what my family referred to as a "f**k you" fee for bringing in my supposedly less clean car, bought somewhere other than California, regardless of the fact that the Civics were built beyond California specs. Several years later, California had to refund this fee to everyone affected by it. No interest, but still, it was nice to get it back!)

 

Sounds just like an ADM fee I've seen posted on new car window stickers: Adjusted Dealer Markup. In Texas, we have a "doc fee" which is a legal fee for the sellers handling of legal documents. IIRC, the legal minimum is $50 but dealers are free to place whatever amount on that line in the contract that they think they can get away with.

Why are you posting this FHOP?

 

The only fee name outlawed on price stickers is the one called "extra profit". It's a car dealer requirement to come up the replacement name.

 

In Tennessee we have a hellish $375.00 documentation and title fee, along with our high sales tax. Then again, it's better to be bit there than to be bit harder in other taxes.

 

DadofHedgehog mentioned about the VA fees in his recent thread about FORD Fusion Energi, which he crossed state lines to buy in MD specifically due to the lower addon fees. The other possible "advantage"of buying in MD is CARB certification but I am not sure yet if that is meaningful for a variety of reasons (see below and VA Prius could be CARB certified too).

>>Tell me what town and will estimate his sales, property tax and hybrid fees ($64/yr).

* FORD warranty implies if FORD hybrid car is CARB certified you get CARB 150k batt anytime you have car registered in a CARB state, which I interpret would increase resale value. People here say that Toyota takes a hard line interpretation that to get the CARB warranty, the car must be CARB certified and orig owner must immediately register in a CARB state from the getgo. If that is true (which I question) then registering the Prius in non-CARB VA would nullify the CARB warrranty.

 

He should just ask the dealer to please don't handle it.

 

When I encounter these BS fees, I respond back with a BS buyers fee. They get it and drop it or I walk.

 

As expensive as buying a car in Tennessee is, the Toyota dealer I went to was very considerate. They showed me all kinds of tricks to cut the costs legally that I never would've guessed. I guess they'll like more of my money going to the dealership in a future purchase -- not to the state government.

 

When purchasing I shook hands with the salesman over a document that stated "documentation fee included". Then I was passed over to second salesman who produced a second document (ostensibly to use the dealership's letterhead), and a documentation charge had been re-instated, to the tune of $295.

The guy actually expressed dismay that I took exception to this. Eventually they re-wrote it once again, with the $295 struck off.

That's Open Road Toyota, Port Moody BC, in case it's of interest to anyone

 

Give me a hint about why it is expensive to buy a car in Tennessee? I like to compare state by state car tax policy.

 

We have an insane sales tax. It's like the second or third highest in the country maybe? I don't know that's what I heard on Yahoo!. It's like 9.725%.

 

OK thanks got it! In North VA we pay 4% sales tax + $64/yr hybrid fee + annual property taxes on blue book value of car. I figure total could be as high as 20% tax on a Prius assuming 10-yr ownership (depends on your town's tax rate).

 

It's as if the very state that borders D.C. doesn't want their residents to save the environment.

 

Kind of.

State and Local Sales Tax Rates in 2013 | Tax Foundation

This chart doesn't show specific location rates within the states (e.g., the total sales tax in the city of Los Angeles is 9%, 1.5% higher than the California base rate), but Tennessee is right up there too!