Documentation Fee

Submitted by T-Hussle t3_11dkw51 in massachusetts

I'm about to close the deal on a new Subaru Outback from the dealership and I'm being charged a $693 documentation fee. I understand that Massachusetts does not set a legal upper limit on this, but this seems a bit steep from what I've seen online.

Is this the standard now-a-days?

Update: as u/modernhomeowner pointed out, Subaru disables Starlink due to a MA Right to Repair law. After bringing this up, the sales manager offered a $250 discount on the MSRP, saving me a little in taxes as well! Still paid the $693 Documentation Fee, but negotiated more than I thought I could. Thank you all for your insights! I owe you all a friendly merge on the pike if I catch ya!

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[deleted] t1_ja98qnf wrote

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T-Hussle OP t1_ja9ai1u wrote

Thanks. Ya, I caught this way too late. Don’t think I gave a lot of negotiating power at this point.

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user72230 t1_ja9amrl wrote

If you can back out, you still have power

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UncleCustard t1_ja9j75q wrote

Exactly this. You're in control until you've given them the money and signed the papers. If you haven't. Just say "I'm not willing to pay documentation fees. Also, is my deposit 100% refundable?" They'll get the drift.

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modernhomeowner t1_ja9cgg7 wrote

Keep in mind Subaru will disable its Starlink because you are buying it in MA. Use that as negotiating leverage against going to Toyota, Tesla, VW, or any other brand.

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T-Hussle OP t1_jaalc7k wrote

Thanks for the heads up! Because of this comment here, I ended up using this as my reason for a lower fee. They gave a $250 discount leaving me nicely below the $500 mark. :)

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Rick_Sanchez1214 t1_jaab6ua wrote

The dealer doc fee is nothing more than a straight up cash grab, pure profit. You can negotiate this number down a couple hundred bucks during the sales process.

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movdqa t1_ja9cmi4 wrote

My local dealer charges $495 for documentation fee. This is at Toyota of Nashua. Prime Subaru of Nashua is also $495. So $693 does seem high.

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Banea-Vaedr t1_ja9b6mj wrote

Mine was $500. I suspect the dealership expects that to be negotiated down. Did you do any negotiation at all on the car?

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funferalia t1_jaaaiw2 wrote

You’re getting played. There are other Subaru’s and other dealers. Call Subaru of America directly.

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March_Latter t1_ja9fqih wrote

I would not pay it...This means I don't go shopping at dealers as too many people think its just a fee instead of what it is, added profit. I have been out of dealerships for a while now and oddly financially I do a lot better on cars. I save about 4k a purchase on a used car, and I sell them about 18 month later losing no more than an extra 2K. And I drive a Mercedes and a BMW.

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LasagnahogXRP t1_jacaax8 wrote

What do you use to buy cars?

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March_Latter t1_jacc5s9 wrote

I look online. It isn't hard as many people have gone to the dealership and been lowballed on their car. Many people can't make their payments on these higher end cars so when you show up willing to buy the car for trade in value they are thankful to see you.

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kentuckyfortune t1_jaaa1iy wrote

Hi OP, have you called Subaru of America and mentioned you are a potential buyer? If you have owned subaru previously you can ask if they provide loyalty credits (usually $500) - they will ask for your old VPN to verify or if you get a nice customer rep and explain a discount would push you over another brand car they nay give it to you. This does not take money away from the sales person and should be given after all negotiations )don't even mention it in case they try to argue that as part of your deal. The coupon should be given after final price.

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kocoerc t1_jaaivu3 wrote

Go to another Subaru dealer and price out the same car. Let the more expensive dealer know you found a better deal elsewhere. They'll change their tune very quickly.

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[deleted] t1_ja9nfwm wrote

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PakkyT t1_jaa0l6i wrote

True, but they also don't have to get the sale because of those high fees if the buyer is not willing to pay them. EVERYTHING is negotiable.

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Hoosac_Love t1_jabtvkf wrote

What is a documentation fee,never heard of that ,I have bought a million cars

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