NJ Sales - dealership charge question

[RowanBuds]

Once again, it's me here to take your time to help answer my questions. I couldn't have gotten this far without the forums assistance, therefore I come asking for more of your help to complete my deal.

I've gotten to the point that I have an offer in place that I am amicable to. i asked the dealer for a printout showing all total fees etc.... to show an out the door price. My understanding is that I should pay state sales tax (7% here), a DMV fee for tags, then a fee for registration and I expected some sort of dealer tacked on "documents fee". Well, now that I see the full details, I have some questions. The line items which I find questionable at best are below:

GOVT FEES: $697 (What could this be - am I not already paying a government fee in the form of tax?)
Doc Fee: $349
Registration: $420
"Supl Title": $371

Can anyone explain these fees to me and give input on if they are reasonable? NJ Experienced dealers/buyers would be great to hear from.

Thanks, as always.

RB.

[motivevelocity]

I was told NJ fees were a little higher (compared to PA). I bought a car just recently in NJ and all i paid was $435 in fees (this included registration, title, plates, doc fees, etc). So seems like yours is pretty high.

[motivevelocity]

And mine was a purchase not a lease so not sure if yours is a lease maybe there are other fees associated with it.

[RowanBuds]

Thanks Tofu. Mine will be a purchase as well - it seems high to me also, totaling at $1,837 when I was expecting ~~ 500. Hope some other NJers will chime in.

[Aziego]

There is some short of lux tax that the state charges, that could be the gov fee. don't know what the title fee is. Don't remember seeing that in mine.

[MWcoupe]

I just picked up a car from nj last week. 350$ doc fee and 275 for registration fee etc. those were my only fees.

[BurnMeWallet]

Do you live in jersey or out of state? Seems like the dealership is trying to nickel and dime you to death with all these bullshit fees! Wtf is title suppl fee for $371. I would walk out of that dealership.

[RowanBuds]

I do live in Jersey. Yes, I agree. I asked the CA for a breakdown of each and will go from there. I am so close to making this happen, I don't want to have a bad taste in my mouth due to nickel and diming.

[Wah]

Here are the fees for my BMW and MB. I'm looking at the sales agreement for both, so this is not off memory.

BMW:
Sales tax (7%)
Tire fee $6.00 ($1.50 per tire... no spare in M)
NJ Luxury tax (0.4% of full sale price)
Registration/Title (estimated) $401
Doc fees $369

MB:
Sales tax
Tire fee $7.50
NJ Luxury tax 0.4%
Registration/Title $386
Doc fees: $389

Those are the only fees added. Sales tax is calculated after the trade in, but luxury tax is calculated before.

[afadeev]

Originally Posted by RowanBuds

I've gotten to the point that I have an offer in place that I am amicable to. i asked the dealer for a printout showing all total fees etc.... to show an out the door price. My understanding is that I should pay state sales tax (7% here)

Indeed, it's hard to negotiate away the state sales tax

Originally Posted by RowanBuds

...a DMV fee for tags, then a fee for registration and I expected some sort of dealer tacked on "documents fee". Well, now that I see the full details, I have some questions. The line items which I find questionable at best are below:

GOVT FEES: $697 (What could this be - am I not already paying a government fee in the form of tax?)
Doc Fee: $349
Registration: $420
"Supl Title": $371

Can anyone explain these fees to me and give input on if they are reasonable? NJ Experienced dealers/buyers would be great to hear from.

RB,
Don't get fixated on the fees. Look at the overall markup you are paying on top of vehicle invoice, and THEN you can judge if you are getting a decent deal.

Some of the aggressive invoice cost + profit deals look good, but the dealer makes up the difference on marking up all sorts of fees.
In other cases, you can negotiate minimal fees but the vehicle price is not discounted as much (as a reference, I paid $275 registration fee on my previous 335ix purchase, and that was it).

On my M3 I am paying higher "fees" than on the 335ix, but not as high as your $1,837. Then again, you may have negotiated a better deal then I did - it is impossible to judge until we compare both the vehicle price and the fees together.

HTH,
a

[RonnyK]

Originally Posted by afadeev

RB,
Don't get fixated on the fees. Look at the overall markup you are paying on top of vehicle invoice, and THEN you can judge if you are getting a decent deal.

While I agree that the out-the-door price is ultimately what matters, there is something inherently not "above board" about the tacked on fees. For one thing, because you often do not see these fees until closer to the end of the process, they can have an effect of keeping the buyer engaged longer because the buyer thinks he/she has agreed on a price when, in fact, that price is not final. From a negotiation standpoint, the buyer has then invested more time and thus, is less likely to balk at additional costs that appear small by comparison.

To be fair: if the price ends up the same under, I acknowledge that the buyer will save some money in sales tax (in states that have sales tax) having some of the price apportioned to fees rather than to the purchase price of the vehicle.

[E90potentialbuyer]

Originally Posted by RowanBuds

Once again, it's me here to take your time to help answer my questions. I couldn't have gotten this far without the forums assistance, therefore I come asking for more of your help to complete my deal.

I've gotten to the point that I have an offer in place that I am amicable to. i asked the dealer for a printout showing all total fees etc.... to show an out the door price. My understanding is that I should pay state sales tax (7% here), a DMV fee for tags, then a fee for registration and I expected some sort of dealer tacked on "documents fee". Well, now that I see the full details, I have some questions. The line items which I find questionable at best are below:

GOVT FEES: $697 (What could this be - am I not already paying a government fee in the form of tax?)
Doc Fee: $349
Registration: $420
"Supl Title": $371

Can anyone explain these fees to me and give input on if they are reasonable? NJ Experienced dealers/buyers would be great to hear from.

Thanks, as always.

RB.

PM'ing you. Looking at my contract.

I have following fees from my Nj contract;
- state tax
- nJ supplemental titling ( luxury tax of 0.4%)
- tire tax of $6
- Registration fee for 4 years of $405
- doc fees of $495 ( part of markup with dealer. I am paying invoice + 500).

[afadeev]

Originally Posted by RowanBuds

My understanding is that I should pay state sales tax (7% here), a DMV fee for tags, then a fee for registration and I expected some sort of dealer tacked on "documents fee". Well, now that I see the full details, I have some questions. The line items which I find questionable at best are below:

GOVT FEES: $697 (What could this be - am I not already paying a government fee in the form of tax?)
Doc Fee: $349
Registration: $420
"Supl Title": $371

Can anyone explain these fees to me and give input on if they are reasonable? NJ Experienced dealers/buyers would be great to hear from.

RB,

I dug-up up bill of sale, more data for you.
The exact State of NJ licensing fees are broken down as follows:
Title Fee .............................$85.00
Registration Fee .................$311.00
Electronic Temporary Tag Fee ..$5.00
Total Fees: ........................$411.00

Everything else beyond taxes is dealer markup.

HTH,
a

[BurnMeWallet]

Ok, to be fair, I didn't know jersey had a luxury tax of .4%. They don't have that in philly when buying a M.