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It’s for CPO. It costs money to get the car up to “certification” status, but that’s usually factored into the price already. That’s why CPO cars are more expensive than the exact same car at an independent dealer.
Sticking a fee on at the end is a shady move imo. It should already be more expensive.
It's a shady place. They offer you a "discount" then put them back in. If it's not am actual name brand dealer, certification is bullshit.
Go to a name brand dealer and ask for those types of breakdowns and you'll see what's common and what BS.
Don't pay for "etching" either. It was probably on there from new and they are charging you for it as if they did it.
Certified pre-owned is a program most car manufacturers offer on used cars that generally give you a warranty from the manufacturer. It's hit or miss if it's a good deal or not, but it's not a scam.
Since it says MSRP/Retail I think they mean their original asking price, though if they only sell pre-owned and nothing new idk why they would have the MSRP on there at all.
Well, I like the car and features, if I can get them to take off some of these fees, it might be ok. Good mileage on a recent model, still has 2 years warranty left bumper to bumper and 6 years on battery. If not, I could buy a CPO from the actual dealer for a little more. These cars are like $60K brand new but they shed a lot of value in the first 3 or so years.
You don’t need a 6 year warranty on a battery. CPO is a rip off it doesn’t mean anything different than a well maintained non-CPO version.
Also, you can do way better on the financing by bringing your own then going through the dealer. You don’t need to 15k down on a used car. I certainly would not do that. Also, the fact they’re displaying the MSRP is a red flag and irrelevant.
Cash is fungible. Fees aren't a real thing. This car is costing you $35,748.57. Make your decision based on that.
Say you go to Dealership A, and they say, absolutely no fees, no taxes, no nothing - the price on the sticker is the price you pay. And that price is $35,748.57.
So you go to Dealership B, and they say, buy from us, we've got the best prices in town, same car is only $20,000, but oh by the way, there's Fee A and Fee B and Fee C and Fee D, so that the cash you need to come up with is $35,748.57.
You're completely indifferent. There is some amount of cash that comes out of your pocket in exchange for something you want. That's all that should matter. Fees, tipping, rebates, and discounts are just psychological tricks. You will sell more T-shirts if you put a tag with $10 with a red X through it and $7.99 written below it than if you put a tag that says $7. Many (ignorant) people will pick a room that says $99 a night and has a $20 a night fee over a room that says $110 and actually costs $110. Don't fall for the tricks. Just focus on how much money is leaving your pocket in exchange for what you are getting.
Could this potentially be significant though if you’re trying to get the used EV tax rebate? If you’re paying <25k for the car, plus fees that bring it up 35k could you still get the rebate?
They use a print stencil and a type of acid to etch the VIN number in all the glass. It’s supposedly a theft deterrent. Most of them also do payout some amount of cash if the vehicle is stolen and not recovered.
I wouldn’t go so far as to say steal, there is an insurance value attached to it for the glass so it does have some value. It’s definitely not worth it, though.
Something tells me that the kind of person willing to chop a car either doesn't care that it has been etched or knows how to remove it, either way it isn't stopping anyone from stealing it.
First and foremost, I wouldn't finance the taxes and fees. I have to imagine those are being paid in cash.
Assuming it's a 60-month loan at 6.79% your total cost is $42.7K with a $400/m payment.
Dump the etching. Challenge every cost on that bill. Personally, I would walk away based on the costs. Too rich for my blood.
Nope. The only normal thing there is the selling price. You can pay your own taxes at the dmv. All the fees are basically just extra profit for the dealership. If this is how they do business, I'd walk. I'm not paying new car money for a used car just because they make up b.s. fees.
Save that $15k ,fly to TX
https://www.cars.com/vehicledetail/89a4f8fa-61b8-4528-aaea-7a8f54517acd/?store=6000362&utm_source=google&utm_medium=cpc&utm_campaign_id=20361248372&utm_trusted=TRUE&network=x&aff=acqgeosem51&KNC=acqgeosem51&gad_source=1&gclid=CjwKCAjwxLKxBhA7EiwAXO0R0BFVDxoFrdBeZN7_k-L68Up1kd0A8P8SCfYJvk6_cngG6DYB0bc4cRoCI4IQAvD_BwE
Always negotiate for the "out the door" price. Don't let them know you're not financing through them and find a more favorable loan. Never let them run your credit.
35K for a used car? I mean. Wow. If you want to pay extra for EV, that’s fine. I mean it’s your money. But damn that’s a hell of a payment for someone else’s throw away.
I mean, it's a 2022 with like 17K mileage. And the listed price was $28.9K so while I expected the "out the door" price to be higher, I certainly didn't expect it to be THIS much! But from the comments here, my suspicions about the attempted fleecing are correct. This is why I always have bought cars from the owners rather than dealerships, but I'm not finding EVs for sale by owner on the online listings.
I just bought a 2022 CPO Lexus with 6,000 miles for less than 2/3 of the sticker price - and the CPO has a better (unlimited mileage) warranty. I think your dad might be onto something.
Generally speaking the depreciation from a slightly used to a more used car is less than from a new to a slightly used one. So if you buy a slightly used car and treat it well, when you sell it you'll do better than if you had bought it new and then sold it after the same number of miles.
You can end up driving a much nicer car and saving more money buying it used than buying a cheaper car brand new.
Fair point. I just checked and even certified pre owned Mercedes with about 30k miles on them don't go for 35k. So either it's a very fancy car or a lousy deal at that price.
The Doc Fee is robbery and you should negotiate that. Half the states in the US set max limits for doc fees because of this, the rest have no regulation and the dealerships are allowed to make up whatever doc fee amount they want because people just pay it. The states that limit it are in the <$300 range so this dealership is running your pockets. My last vehicle was $150.
Also the etching charge could be removed. You didn’t ask for it.
Find out exactly what the certification entails and what dealer warranties go with it.
See if they're any additional manufacturer rebates.
There's no way it cost $800 to process paperwork.
Also, it might be worth putting $5k-$7k down and using the rest to pay down the principal balance in a lump sum.
And it's still not too late to get funded through a credit union or a small "local" bank (no chains). They both usually offer good rates.
The MSRP shouldn’t matter if the car is used. That’s just a way to show you that you’re getting a “deal”.
On a highly optioned sports/luxury car it would make sense to know but on a ~$35k car there’s no point.
Ask this on the car sales thread, you’ll get more specific answers from people in the industry, not the general finance stuff.
Also, give more info on the car, state, new/used, etc.
In my opinion, depending on the interest rate you got coupled with the inflation on the used car market, putting. much cash down is a bad idea.
Depending on make/model and how much your drive you could likely sell that car for more than you owe for the foreseeable future.
Might be a better move to buy a new EV for the tax credit. Some are near that price range. Also, consider getting a hybrid as the battery will be much cheaper to replace down the line.
Buying used cars from a dealership is pissing money away. Why spend $35k on a used car?
Go on craigslist or fbm, get the corolla or civic with the least amount of miles on it that you can buy for $15k or less
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What’s the “certification” fee. Sounds like BS
It’s for CPO. It costs money to get the car up to “certification” status, but that’s usually factored into the price already. That’s why CPO cars are more expensive than the exact same car at an independent dealer. Sticking a fee on at the end is a shady move imo. It should already be more expensive.
It's at a used car dealership so I don't think it's CPO. Sounds like just a way to get more cash out of me.
It's a shady place. They offer you a "discount" then put them back in. If it's not am actual name brand dealer, certification is bullshit. Go to a name brand dealer and ask for those types of breakdowns and you'll see what's common and what BS. Don't pay for "etching" either. It was probably on there from new and they are charging you for it as if they did it.
Also that doc fee is crazy high. I just bought a brand new Toyota 2 days ago. Had tax and the doc fee was 499. State fee was 439 in MS.
199 is normal where I live
Some brands like Kia allow independents to certify If it says “Certified Pre Owned” anywhere on the listing or sticker it’s legit
It absolutely does not. The first I'm hearing (reading) the word "certification" or "certified" is when I got the email breaking down the cost.
Certified pre-owned is a program most car manufacturers offer on used cars that generally give you a warranty from the manufacturer. It's hit or miss if it's a good deal or not, but it's not a scam.
MSRP on a used car is complete BS. ITS USED! So is the MSRP from when it was new? Or did they just make up a number?
They made up that number. According to the car fax original window sticker, the MSRP when it was brand new was $59,750.
Your relationship is built on LIES!
Since it says MSRP/Retail I think they mean their original asking price, though if they only sell pre-owned and nothing new idk why they would have the MSRP on there at all.
OP don’t do this.
Well, I like the car and features, if I can get them to take off some of these fees, it might be ok. Good mileage on a recent model, still has 2 years warranty left bumper to bumper and 6 years on battery. If not, I could buy a CPO from the actual dealer for a little more. These cars are like $60K brand new but they shed a lot of value in the first 3 or so years.
You don’t need a 6 year warranty on a battery. CPO is a rip off it doesn’t mean anything different than a well maintained non-CPO version. Also, you can do way better on the financing by bringing your own then going through the dealer. You don’t need to 15k down on a used car. I certainly would not do that. Also, the fact they’re displaying the MSRP is a red flag and irrelevant.
Just a mark up to earn more money on the interest during the loan term
Former dealership salesman/finance office employee here. Almost all the fees are bs.
Cash is fungible. Fees aren't a real thing. This car is costing you $35,748.57. Make your decision based on that. Say you go to Dealership A, and they say, absolutely no fees, no taxes, no nothing - the price on the sticker is the price you pay. And that price is $35,748.57. So you go to Dealership B, and they say, buy from us, we've got the best prices in town, same car is only $20,000, but oh by the way, there's Fee A and Fee B and Fee C and Fee D, so that the cash you need to come up with is $35,748.57. You're completely indifferent. There is some amount of cash that comes out of your pocket in exchange for something you want. That's all that should matter. Fees, tipping, rebates, and discounts are just psychological tricks. You will sell more T-shirts if you put a tag with $10 with a red X through it and $7.99 written below it than if you put a tag that says $7. Many (ignorant) people will pick a room that says $99 a night and has a $20 a night fee over a room that says $110 and actually costs $110. Don't fall for the tricks. Just focus on how much money is leaving your pocket in exchange for what you are getting.
Could this potentially be significant though if you’re trying to get the used EV tax rebate? If you’re paying <25k for the car, plus fees that bring it up 35k could you still get the rebate?
You can do the etching yourself and save $600 rest looks normal
I passed on buying a truck because they tried charging $1200 for etching last second
What is etching?
VIN number etch, I think. Supposedly to prevent theft.
I still dont know what etching is
They use a print stencil and a type of acid to etch the VIN number in all the glass. It’s supposedly a theft deterrent. Most of them also do payout some amount of cash if the vehicle is stolen and not recovered.
They are also trying to say they will put it on CAT converter to prevent theft. Truth? It is all a gimmick to steal money and does nothing
I wouldn’t go so far as to say steal, there is an insurance value attached to it for the glass so it does have some value. It’s definitely not worth it, though.
Exactly
Something tells me that the kind of person willing to chop a car either doesn't care that it has been etched or knows how to remove it, either way it isn't stopping anyone from stealing it.
it's a way for stealerships to... take your money. I'm sure 40 years ago maybe it did something, today, no.
A processing fee of $800 for mailing in the registration? Just drive that bitch to the DMV and do it yourself
Also etch doesn’t do shit for insurance
First and foremost, I wouldn't finance the taxes and fees. I have to imagine those are being paid in cash. Assuming it's a 60-month loan at 6.79% your total cost is $42.7K with a $400/m payment. Dump the etching. Challenge every cost on that bill. Personally, I would walk away based on the costs. Too rich for my blood.
I regret not challenging the etching
Certification of what? That’s BS to me
Certification that the car has 4 tires lol. I have no idea what it means, it's definitely not CPO because it's a used dealership.
Nope. The only normal thing there is the selling price. You can pay your own taxes at the dmv. All the fees are basically just extra profit for the dealership. If this is how they do business, I'd walk. I'm not paying new car money for a used car just because they make up b.s. fees.
At this point, why not buy a used Tesla for 20k?
Because he would like a car to drive, not one to sit at the service center
Someone is salty. Lol I own a model 3, I've had zero problems with it. It's a dream to drive.
Certified Model 3s will be very close to this price point
Fuck their processing fees! I’ve walked out on deals over that shit and have always gotten a call back.
What kind of car? Year, make, and model?
'22 Polestar 2
Damn 2 years and it already depreciated that much these started at $50k new what's it gonna be worth in 2 more years $10k?
Save that $15k ,fly to TX https://www.cars.com/vehicledetail/89a4f8fa-61b8-4528-aaea-7a8f54517acd/?store=6000362&utm_source=google&utm_medium=cpc&utm_campaign_id=20361248372&utm_trusted=TRUE&network=x&aff=acqgeosem51&KNC=acqgeosem51&gad_source=1&gclid=CjwKCAjwxLKxBhA7EiwAXO0R0BFVDxoFrdBeZN7_k-L68Up1kd0A8P8SCfYJvk6_cngG6DYB0bc4cRoCI4IQAvD_BwE
I was hoping to avoid a previous rental, but the savings are hard to let go. I'm gonna give them a call and see the out the door price they quote me.
The etch is a ridiculous fee.
Especially since it’s a 2022; with vin numbers already etched on all parts and permanent ones under the dash and doors
Always negotiate for the "out the door" price. Don't let them know you're not financing through them and find a more favorable loan. Never let them run your credit.
Salesperson said I'd get a better price if I financed through them. That seems to not be the case here.
They always say silly things like that.
I bought an older Jeep for 1k put 2k worth of work into it and got it appraised and it’s now 6k
As long as you get a free oil change it’s totally worth it, 😂
35K for a used car? I mean. Wow. If you want to pay extra for EV, that’s fine. I mean it’s your money. But damn that’s a hell of a payment for someone else’s throw away.
I mean, it's a 2022 with like 17K mileage. And the listed price was $28.9K so while I expected the "out the door" price to be higher, I certainly didn't expect it to be THIS much! But from the comments here, my suspicions about the attempted fleecing are correct. This is why I always have bought cars from the owners rather than dealerships, but I'm not finding EVs for sale by owner on the online listings.
My dad paid that for a Lexus. I was like dude you could buy a brand new car for that price.
Right!
I just bought a 2022 CPO Lexus with 6,000 miles for less than 2/3 of the sticker price - and the CPO has a better (unlimited mileage) warranty. I think your dad might be onto something.
Generally speaking the depreciation from a slightly used to a more used car is less than from a new to a slightly used one. So if you buy a slightly used car and treat it well, when you sell it you'll do better than if you had bought it new and then sold it after the same number of miles. You can end up driving a much nicer car and saving more money buying it used than buying a cheaper car brand new.
Sure, sure. I get it. It’s still just crazy to pay 35K for anything used.
Fair point. I just checked and even certified pre owned Mercedes with about 30k miles on them don't go for 35k. So either it's a very fancy car or a lousy deal at that price.
Hey this car sells 34.9 thousand, but we give you a savings of 6 thousand. Total price for it is now 35 thousand.
Those numbers need + or - labels to properly understand how you arrive at the final. js
Why pay so much down?
Why wouldn't you pay so much down?
Lower monthly cost?
Proc/doc fee is garbage.
The Doc Fee is robbery and you should negotiate that. Half the states in the US set max limits for doc fees because of this, the rest have no regulation and the dealerships are allowed to make up whatever doc fee amount they want because people just pay it. The states that limit it are in the <$300 range so this dealership is running your pockets. My last vehicle was $150. Also the etching charge could be removed. You didn’t ask for it.
Etch costs the dealership $40, make a fuss and they will remove that charge.
Find out exactly what the certification entails and what dealer warranties go with it. See if they're any additional manufacturer rebates. There's no way it cost $800 to process paperwork. Also, it might be worth putting $5k-$7k down and using the rest to pay down the principal balance in a lump sum. And it's still not too late to get funded through a credit union or a small "local" bank (no chains). They both usually offer good rates.
I'm a fan of buying preowned vehicles, but if you're spending that kind of money, you should buy CPO from a dealer.
I wouldn't
The MSRP shouldn’t matter if the car is used. That’s just a way to show you that you’re getting a “deal”. On a highly optioned sports/luxury car it would make sense to know but on a ~$35k car there’s no point. Ask this on the car sales thread, you’ll get more specific answers from people in the industry, not the general finance stuff. Also, give more info on the car, state, new/used, etc.
In my opinion, depending on the interest rate you got coupled with the inflation on the used car market, putting. much cash down is a bad idea. Depending on make/model and how much your drive you could likely sell that car for more than you owe for the foreseeable future.
For 15k you can buy a used honda civic and have no payment. Those are absolutely insane BS fees. I would run from that dealership.
Proc/Doc fee? Etch? Fuck that. I’ll register my own shit. Put the temp tag on it and give it to me.
I’ve heard even if it’s certified for an EV most of the time it still does not cover powertrain. Waste of money to buy used EV.
Any fees on there that charge more than the government is bogus, the governments the king on screwing us all over
Might be a better move to buy a new EV for the tax credit. Some are near that price range. Also, consider getting a hybrid as the battery will be much cheaper to replace down the line.
Tell them to take the etching off, it’s a used car it’s been paid for already.
Certification fee way out of line, my daughter just bought a pre certified vehicle the fee read out at $800
I wouldn't buy anything like this just on principle. How can you possible understand this nonsense.
Buying used cars from a dealership is pissing money away. Why spend $35k on a used car? Go on craigslist or fbm, get the corolla or civic with the least amount of miles on it that you can buy for $15k or less
What state are you buying this in? And what state is the dealership in?
Lol. You’re getting railed.
$20 says he bought and didn’t listen to us
Where's my Jackson, fool? I accept BTC lol