Law and Rights
"You mean I didn't have to pay that?"
In many car sales contracts you'll see a charge for what car dealers call a "documentary fee." Watch out! That's nothing but extra profit. Doing the documents is part of what they do in every case so there's not really any extra work involved --- just extra money for the dealer.
Some states, like Ohio, do allow a car dealer to charge the documentary fee if they are arranging your financing, but there's nothing that requires it and there's nothing that says it has to be the maximum amount that even those laws allow under some specific circumstances. Nothing, that is, but greed.
That greed can get out of hand. Take the case of Lithia Motors, where they were hit with a record fine of $500,000, imposed on a dealership chain's nine stores in Alaska.
On top of the half million dollar find, Lithia Motors was also ordered to send $200 refunds to several thousand Alaskans who were charged document preparation fees that the state said had been overcharged or illegally charged. It was the largest fine handed out to an Alaska auto dealership and shows a good example of car dealer greed.
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Law and Rights
A Dealer Doc Fee Can Be Fraud
"You mean I didn't have to pay that?"In many car sales contracts you'll see a charge for what car dealers call a "documentary fee." Watch out! That's nothing but extra profit. Doing the documents is part of what they do in every case so there's not really any extra work involved --- just extra money for the dealer.
Some states, like Ohio, do allow a car dealer to charge the documentary fee if they are arranging your financing, but there's nothing that requires it and there's nothing that says it has to be the maximum amount that even those laws allow under some specific circumstances. Nothing, that is, but greed.
That greed can get out of hand. Take the case of Lithia Motors, where they were hit with a record fine of $500,000, imposed on a dealership chain's nine stores in Alaska.
On top of the half million dollar find, Lithia Motors was also ordered to send $200 refunds to several thousand Alaskans who were charged document preparation fees that the state said had been overcharged or illegally charged. It was the largest fine handed out to an Alaska auto dealership and shows a good example of car dealer greed.
Lithia's 104 dealers, actually based in Oregon, had collected the fees from customers goiong back to 2002.
If a car dealer tries to hit you with $250 for their documentary fees, argue with them. If they won't reduce it for you to something more reasonable, then take your business elsewhere. If you just found out about it and it's too late, then call us. In many cases we can get that back for you and make the car dealer pay us for our time to do it too.
Don't waste your money and don't let a crooked car dealer rip you off. When it happens, call us. That's what we're here for.Burdge Law Office
www.OhioConsumerLaw.com
Helping Consumers Get Even Since 1978
www.OhioConsumerLaw.com
Helping Consumers Get Even Since 1978
Subscribe in a reader- The Next Big Fraud Device?
Watch out! The next big fraud is one you don't see coming. It's a convenience that sounds easy but it can cost you thousands of dollars when you buy your next car or truck - before you even know it has happened to you. Easy signing, easy stealingMany...
- Negative Equity Gets More Negative
It's everywhere. Reports of a rising recession, layoffs, abandoned factories, bankruptcy threats and more. And now, some hungry car dealers are starting to show it in the paperwork we are seeing. There's more (and higher) negative equity numbers...
- Convicts At Car Dealers, Part 3
"Cheezit, guys, here come the cops!" It's not just a line from an old movie. It's probably what they said at an upstate New York Chevy dealer recently when the police showed up with search warrants. Not a good way to start the day. If a car dealer?s...
- Convicts At Car Dealers, Part 2
If the car dealer?s employee is willing to steal from the company that pays her, what makes you think they won?t steal from you too? Arnold Pontiac GMC had been in business since 1916 and Joyce Piasente had worked there for 27 years but she stole nearly...
- Forbes Quotes Burdge
In a recent article, Forbes website ran an article called "10 Ways to Outwit a Car Dealer" and quoted Lemon Law attorney Ron Burdge discussing the secret ways car dealers make money off customers, including "Dealer Reserve." That's a practice many...