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Old 05-19-2020, 05:25 PM   #1
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Prep fee

Hello!

I’m a new member and live in Colorado. We just purchased a 2020 Forest River Rockwood 2280BHESP. We are having some pretty big issues with the dealer. Can anyone please tell me what the dealer prep & handling fee is for?

Thanks!
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Old 05-19-2020, 06:02 PM   #2
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To enhance the dealers profit.
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Old 05-19-2020, 06:04 PM   #3
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Hiya Debbie, and welcome!

Those terms have no standard meaning. I used to work at a VW dealership and it meant getting the car from "shipping" condition to "delivery" condition. That included filling fluids (they were shipped without oil or engine coolant), inspecting and doing top-offs, adjustments, and things like removing the pllastic from the seats, putting gas in it, and connecting the battery. It took an entire day on a Rabbit.

When I worked for Datsun, the dealer prep didn't mean much. We ran down a 125-point checklist, test drove the car, and sent it to the detail shed for a scrub-down. PDI was paid flat-rate. There was no incentive to do the work.

I worked for a Chevy dealer where it meant nothing. A high-school kid hooked up the battery, gave it a standard safety check, and pulled the covers off the interior. A salesman put a gallon and a half of gas into it drove it a few miles. The goal was to sell the car before the gas ran out.

"Handling" means whatever they want it to mean. You probably want to argue that they are the same fee, or redundant fees to your purchase. I don't know. But if the various jobs related to pre-sales and sales are compartmentalized just so, different aspects could be charged to either a delivery or a handling account. This could be especially true if things like transportation, pre-delivery service, and the pre-delivery inspection are subcontracted.
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Old 05-19-2020, 06:14 PM   #4
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Quote:
Originally Posted by pointrow View Post
To enhance the dealers profit.
X2. Or to put a finer point on it, to allow the dealer to recoup "costs of doing business" while still making it look like they gave you a rock-bottom price.
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Old 05-19-2020, 06:30 PM   #5
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Welcome to the greatest RVing forum. Never be afraid to ask a question. You'll probably get a correct answer and other opinions.

X3- just another term for more profit. Besides car & RV dealers adds such a charge. The quoted price should be the price you pay plus tax & license. Anything else is a rip off. You've already bought it, so water under the bridge. The buyer has the money and drives the deal. If a dealer won't budge on such fees you should walk. Plenty other dealers out there.

Have fun and be safe....
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Old 05-19-2020, 06:33 PM   #6
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Pure Profit for them ! Just say no Way !
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Old 05-19-2020, 06:41 PM   #7
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Say no and walk away. They will back down real fast.
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Old 05-19-2020, 06:55 PM   #8
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Dealer Prep and Handling - also described as Administrative Fee in many dealerships - it all depends on each state's consumer protection laws ...

It's a way to state to a customer during shopping for a vehicle that a vehicle is going to cost X and then when it's time for the customer to sign the vehicle purchase agreement it is suddenly X + Y where Y is the "fee" shown on a separate line. In Kansas where I live it tends to range from $ 199 to $ 399. As was said, it is totally negotiable.

Most dealers will be quite convincing on why they break out the "fee" and what the "fee" goes for. The bottom line of how much you are paying the dealer (less taxes) is what you need to be happy with. If not walk away and keep shopping.
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Old 05-19-2020, 07:04 PM   #9
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all of the above info is true - and most dealers will tell you that everyone is charged it and they cant remove it.

just tell them you dont care where it goes, but it comes off so the agreed price is the price you pay no more, if not, walk out the door
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Old 05-19-2020, 07:12 PM   #10
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"Prep Fee" is negotiable with the dealer. When I get down to the final negotiation, I will tell the dealer to drop the "Prep Fee or any additional charges" and I will sign the deal.
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Old 05-19-2020, 08:16 PM   #11
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That is why I deal with them on ONE single number....Bottom line, out the door, tag, title and taxes. No add on fees.

I was ready to walk on one truck, when we got to finance and they started trying to add on a protection package fee. Salesman and manager caught me at the door and the fee went away.

Ken

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Old 05-19-2020, 08:32 PM   #12
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I also tell the salesman I will not speak to the business manager after the sale is done. If they want to try and sell me on extended warranty, protective coatings or any other add on feature I will need that price up front.

Occasionally I have been interested in some of those add ons and I find the price tends to be much better if they have to come up with one before you are "committed" to making the purchase. And by knowing the price of those high profit items you can say yes I will take "X" but here it the total price I am willing to pay.
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Old 05-19-2020, 08:50 PM   #13
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Quote:
Originally Posted by rodekyll View Post
Hiya Debbie, and welcome!

Those terms have no standard meaning. I used to work at a VW dealership and it meant getting the car from "shipping" condition to "delivery" condition. That included filling fluids (they were shipped without oil or engine coolant), inspecting and doing top-offs, adjustments, and things like removing the pllastic from the seats, putting gas in it, and connecting the battery. It took an entire day on a Rabbit.

When I worked for Datsun, the dealer prep didn't mean much. We ran down a 125-point checklist, test drove the car, and sent it to the detail shed for a scrub-down. PDI was paid flat-rate. There was no incentive to do the work.

I worked for a Chevy dealer where it meant nothing. A high-school kid hooked up the battery, gave it a standard safety check, and pulled the covers off the interior. A salesman put a gallon and a half of gas into it drove it a few miles. The goal was to sell the car before the gas ran out.

"Handling" means whatever they want it to mean. You probably want to argue that they are the same fee, or redundant fees to your purchase. I don't know. But if the various jobs related to pre-sales and sales are compartmentalized just so, different aspects could be charged to either a delivery or a handling account. This could be especially true if things like transportation, pre-delivery service, and the pre-delivery inspection are subcontracted.
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Old 05-20-2020, 10:53 AM   #14
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The RV typically needs some TLC to transition from the factory-delivered state to the "customer-ready" state. The RV MSRP price includes enough profit margin for the dealer to check it out, clean it up and otherwise make it nice, but discounts from MSRP pricing often give that away, so the dealer add back in a fee for doing what he should have done as part of the deal (cost of doing business). It may be in addition to an administrative (paperwork) fee or "dealer" fee and/or specific fees for other necessary services, like installing a trailer hitch.


As was stated earlier, there is no standard definition of what prep & handling means. It's whatever the particular dealer wants it to mean.
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