This auto dealer scam allows a dealer to make a quick profit from car buyers. Even though it is legal, it is considered to be a scam because auto dealerships are able to recover these preparation fees from the manufacturers.
Generally, preparation fees cover the checking of fluid levels, peeling of plastic off the seats, vacuuming the interior, and washing and waxing the exterior. It takes about 2 or 3 hours of work. They may tell you that you must pay a fee for this, however you don’t have to pay anything because it is already paid for and listed on the MSRP. The car scam lies in the fact that the dealer double collects the car preparation fee.
If you refuse to pay for the preparation fee, simply tell the car dealership to credit you the amount of the preparation fee service on your contract. If they do not honor your request, just get up and walk out. Keep in mind, that it is legal for a car dealership to tack on preparation fees on your final bill, but if you go into the dealership armed with knowledge, you can save yourself a ton of money.
If you believe you are a victim of car preparation fee scam, you really cannot report it to the Better Business Bureau and lodge a complaint about their dishonesty. You can report that the car dealership engages in this practice on record, and perhaps somebody else can benefit from your experience.
There are many forms of auto dealer fraud nowadays. To avoid becoming another victim of a vehicle fraud simply educate yourself on what is or is not legitimate. Hopefully, reading this blog will minimize your chances of becoming a victim of car preparation fee fraud.
Do any car manufacturers pay for the preparation fee the dealers charge?
I am not sure which fee you are referring to but if there is a standard fee charged on all deals then most likely it is legal. The DMV regulates all charges on the sales documents and there are set maximums for most charges. For example a dealership cannot charge $500 for document preparation – in fact I just took on a case where they did so. I hope I have answered your question. If you have a specific issue feel free to call my office at 818.990.0418.
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