Go to a new car vendor’s with the honest intent to buy a new car, and you get hit with a virtual hurricane of jargon of all of the different versions of charges they plan to make you pay. Who truly knows what these things mean? You do, if you read the rest of this content. Let us begin with the A’s. The Additional Dealer Markup is a silly made-up fee the new car vendor makes up only for you. It will be right there on the MSRP sticker, called ADM. Ensure that you totally knock the Additional Dealer Markup all the way down.

How about the vendor floorpan assistance fee? That is a silly thing to charge too. This is different with used cars. That is what they need to pay to their financers for all of the stocks of vehicles that they keep. Usually, they pay about $100 each month in interest for every car on the lot. They want you to pay it for them. The thing is, the car factory generally assists dealers with this. But they will just go around and get it all over again from you as well. Isn’t that handy? If the car has been sitting there on their lot for a few months, they will have gotten that fee three times from the car manufacturing facility. But they still would like you to pay for it. It is an absolute insult to your intellect, and you want zero part of it.

How about the vendor prep charge? That is the fee that the vendor collects from you to ready the car for sale – they take the plastic off of the seats, do any superficial cleaning that needs to be done, put on one wax coat on and inspect the fluids. This is now and then the case for used cars, as well. The used cars circumstance varies from lot to lot. For this, they would like you to pay $500. What could it take them, one hour to finish the job? How could they in good conscience charge $500 per hour for such a job?

Another weird fee they love collecting from you is the Drive Off Deposit. That is just a completely made up fee that the new car vendor collects from you to try and balance out the rebate that they may have given you. It is just thieving, plain and straightforward, and you do not want them to do this to you.

And ultimately, the Factory Holdback is one you want to watch out for. The factory holds back 2% or 3% of the price of a car from the vendor until they actually sell it. Once the car is sold, they will give vendor the their cash back. What dealers do is, they try and double charge it – one time from the car company, and one time from you. If you see this on your invoice, ask to have it taken off or threaten to leave. It is well worth the hassle to display some backbone.