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Someone wrote me and I thought I'd reply in the forums so everyone can see. Identifying info removed
Discussion or posting about 'What is a legitimate charge by the dealer when buying a new TDI and
what should not be paid.'


I'm sure I read it here, but perhaps not?

Reason for asking is:

Dealer [removed unless the message sender wants to fill it in] is saying on their invoice that they charge for '[removed] Ad Association'
$200, 'Full Tank and Internet Reserve' $182, and 'Port Prep Fee' $25.
:BS

These seem like mickey mouse fees to me and I do not recall ever seeing such baloney on any invoice before. :dunno
Am I all wet, or is this just a way for the dealers to maximize profits on these supposedly hard to get TSI JSWs with DSG.

Sorry to be so long winded, but I need to know so I won't be screwed blued and barbecued!
I assume TSI is a typo. All those charges are at the same time, valid and also baloney. They are actual charges but at the same time, should be absorbed by the dealer. Some places won't budge on "delivery + prep + documentation", it depends on the dealer and state and what's the local norm. Prep involves peeling the plastic covering off and going through a checklist. They normally charge you about $200/hour for prep and judging by the number of complaints on leaving the suspension blockers in, they don't even do it. Documentation is the fee they pay to the DMV to get you plates. Delivery is also a fee they pay but it's $750 so the math doesn't add up: $349 + $550? Personally, I would not pay the floor plan interest, prep port, or ad fee, and would question the other stuff.

Why not charge you for the phone calls to you or a employee worker's comp insurance surcharge? Those are valid costs too but I don't think any buyer would stand for those. http://www.edmunds.com/advice/strategies/articles/59651/article.html here is some more opinion on those
In another case, a friend of mine was told by a dealer that he could buy a hard-to-find Volkswagen for $500 over invoice. When the contract arrived, the dealers had added a $349 fee for "D&H" or "delivery and handling" charge. This charge was added to the contract despite the fact that the invoice already contained the following charges: $550 for the destination charge, $200 ad fee, $92 for "floor plan interest reserve" and a $25 "port prep fee."
After checking with industry sources, it is Edmunds' position that fees on the manufacturer's invoice are not negotiable. However, if duplicate fees (such as the "D&H" fee in this VW contract) are written into the contract by the dealer, these additional charges can be challenged.
 

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Those are charges for people who don't contest them ;) Full tank of fuel now costs $182? Internet reserve? Did you buy it off ebay or what?!
 

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Thanks!

Someone wrote me and I thought I'd reply in the forums so everyone can see. Identifying info removed
I assume TSI is a typo. All those charges are at the same time, valid and also baloney. They are actual charges but at the same time, should be absorbed by the dealer. Some places won't budge on "delivery + prep + documentation", it depends on the dealer and state and what's the local norm. Prep involves peeling the plastic covering off and going through a checklist. They normally charge you about $200/hour for prep and judging by the number of complaints on leaving the suspension blockers in, they don't even do it. Documentation is the fee they pay to the DMV to get you plates. Delivery is also a fee they pay but it's $750 so the math doesn't add up: $349 + $550? Personally, I would not pay the floor plan interest, prep port, or ad fee, and would question the other stuff.

Why not charge you for the phone calls to you or a employee worker's comp insurance surcharge? Those are valid costs too but I don't think any buyer would stand for those. http://www.edmunds.com/advice/strategies/articles/59651/article.html here is some more opinion on those
:)

Thank you for pointing me in the correct direction. All information is appreciated.

Yes, I did indeed make a typo. You see, I am a 'hunt and peck' typer.
The "S" is right next to the "D" so it is indeed TDI and not TSI.

Those figures appear right on that dealers' 'Vehicle Invoice'
so I don't see how I will be able to avoid them, do you? :confused:

I guess I should be thankful that they are selling me a JSW TDI with DSG and
P75 wheels for $26,505.33 delivered which is $561 below MSRP but with
their usual added fees which I have not had broken down as of yet.

MSRP or Monroney is $26,915. The dealer is showing the invoice figure as $25,854 and
is selling it for $26,354 ($500 over) plus miscellaneous fees for a total of $26,505.33
which includes a temporary permit so I can drive it home from Texas.
Make sense to everyone? I hope so.

Seems like this may be the best deal I can find, as all dealers here in Southern California act
like the few cars they have are the only ones that will be made and they won't go below MSRP! :ugh

:D
 

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The charges cited in the original post are legitimate. They appear on the invoice. The DAA fee varies around the country, but the fuel, interest reserve, and port prep fees are charged to the dealer.

When I was in grad school I sold BMWs. The store I first worked for had a $500 DAG (dealer advertising group) charge on each car. Another store 20 miles away didn't participate in the factory ad program, so they did not have this charge. So after working to locate a car and negotiate a deal, a customer could go to the other store and be told "We'll beat them by $500." in the first minute of discussion. Guess where I ended up working?

There is a great VW dealership near me that posts the invoice of each car in stock on their website. Click on the blue stock numbers; some links don't work (probably sold):

http://www.nmvw.com/inventory.htm
 

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Refreshing to be Sure

One can only wish that all VW dealers would do as your New Milford VW dealer is doing. :yum:

I notice that they are a small dealership as their stock is rather limited.
No Jetta or Golf TDIs in stock seems strange, but perhaps they do have
'em but don't want everyone to really know what the true invoice is?
I hope that they do not have any and are simply not hiding the facts.:confused:

Interesting to see just how much there is to play with in the Touareg V6 3.0L TDI.
The Touareg TDIs I have seen are always with an MSRP over $50K.
There don't seem to be too many of them around;
Kind of defeats the economy factor at those elevated prices.

:D
 

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I notice that they are a small dealership as their stock is rather limited.
No Jetta or Golf TDIs in stock seems strange, but perhaps they do have
'em but don't want everyone to really know what the true invoice is?
I hope that they do not have any and are simply not hiding the facts.:
Those guys are straight shooters; they've been around for a long time in a very affluent part of the state and wouldn't risk their reputation. On the other side of the coin, I've seen dealers list their sold orders on their website and then when you go there (of course, they won't disclose anything over the phone) they don't have anything near their online inventory.
 
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