Contact 5 Investigation: Dealership Fees
(WPTV Staff)
Reported by: Shannon Cake
The following story was also posted online at www.leasetrader.com.
You don't hear it from too many auto dealers, "Take your money and put it in your wallet!" That's what one local dealer said, and he also said he is being met with opposition from other dealer's from across the state.
Contact Five's Shannon Cake took a look at the dispute over dealer fees and whether Floridian's will be paying them in the future. Earl Stewart of Stewart Toyota in Lake Park said he's going where most car dealer's won't! He's talking openly about something industry insider's call 'Dealer Fees.' He claims they're tacked onto your bill after you've negotiated the price of your car.
"The dealer fee, maybe most people don't know, is an extra charge, a surprise charge coming after the price has been quoted for the car. They range in my experience from as low as 389 dollars to 999 dollars, almost a thousand dollars." said Stewart. "The consumer should have the right to price and compare cars just like they have the right to price and compare TV's, refrigerators, or any item that they buy."Stewart is so convinced dealer fees are misleading.
"Every dealer can choose his own dealer fee, there's no state cap." said Stewart. He took his message to the State Capitol, 'Talked out of school' if you will, and told lawmakers all about his industry's sales tactics. "We name it some thing obscure. We always try to get the word fee in there cause that's got the official ring to it," said Ted Smith, President of Florida Automobile Dealer's Association. "Our opinion as a trade association is consumers should know everything that happens with a sales transaction. We have a difference of opinion with Mr. Stewart because we believe people do know what they're paying for cars, we believe the contract stipulated what people pay for cars and to that end, we don't think there's a problem that's broken here."
But since Stewart has been running his ads, he's been logging his answering machine messages."I agree wholeheartedly with Earl Stewart. I just stopped by a dealership yesterday and the dealer fee is $2295, on every car they have on their lot. I think this is outrageous and it should be stopped. "But Florida's Automobile Dealer Association believes the sales table is one place the government doesn't belong.
"We don't believe the legislature should control the selling point of a vehicle or any component of the sales price of a vehicle," said Ted Smith. "The consumer of today is not this poor unknowledgeable,uneducated person who comes and sits at the mercy of car dealers. My goodness! Gross margins on vehicles have never been at a lower point."
F.A.D.A. said this is really a debate about a difference in pricing. One dealer might price their care super low so it looks good in the ads in newspapers, to get extra traffic through their doors. It's a way to compete with other auto dealers in town.
But F.A.D.A. claimed the dealer fee is more of a sales strategy than a misleading sales tactic. The Association said that they are in favor of always making sure the dealer fee is clearly disclosed according to Florida Law. Stewart said just by the fact that it's called a 'fee' on the contract, that is miseading and he's hoping one day, dealer fees are banned altogether in this state.
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This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com.
This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com