The Selling Price add “dealer handling” or a “documentation” fee to it. With new cars, it is: A maximum profit first offer. Don’t forget: they’ll probably
usually Manufacturer’s Suggested Retail Price (MSRP) plus some silly add-ons like “Market price adjustment” or “Paint protection”, listed on an
“addendum” sticker, placed next to the MSRP on the vehicle’s window. Withused cars, old-school dealers set their asking price at $2,000-$3,000 above
cost, or more.
TIP: Don’t forget about D&H!Ah, the fine print ... most new car dealers have some type of dealerhandling (D&H), document or administration fee. No matter what they call (^)
it, it’s just profit. Make sure you know that the price you’ve negotiatedincludes D&H; otherwise be prepared to have that little sign in the corner, (^)
that says something like: “To the negotiated sales price, add $498.99 fordealer preparation and documents,” brought to your attention after you’ve (^)
gone through your negotiations.
The typical D&H range is $199 to $399 on low- to mid-priced cars andtrucks, and $499 to $999 on luxury vehicles. This is pure profit, but in most (^)
states, if a dealer prints it on their documents, it cannot be crossed off, as itmust be shown as having been charged to all customers equally. However,
the D&H fee can always be “backed out of” the sale price. It will still showon the documents, but you won’t have paid it on top of what price you
thought you’d negotiated. Just make sure you bring this up early in thesales pitch.