Hello, isn't acquisition cost normally included in the MSRP for a vehicle? For example, if I configure a car on automaker's website which it calculates at $70k then isn't that what I should expect to pay the dealer for the car, without an additional "acquisition fee" on top of that? Please confirm.

 

The last three vehicles I have purchased or leased have included a $100-150 "documentary service fee" which I assume is because I financed with the dealer's bank. If I hadn't financed I shouldn't have to pay anything extra, except maybe a delivery fee to have the car transported to the dealership. If you're buying off the lot the delivery fee is already listed on the window sticker.

 

It is indeed a lease doc fee, traditional loans also have them. Dealers do have all sorts of fees they are charged and pay for, part of the cost of doing business.

Everything is negotiable. The only number that should matter to the buyer is the bottom line, in the case of a lease, the amount due up front, the monthly payment & any fees at lease end.

 

I'm totally fine with a "documentation fee" of $150 because that's fairly standard. However, I wouldn't expect to pay an additional "acquisition fee" because that should be included in the msrp. Based on the feedback I'm getting here that seems to be the general concensus here - that no acquisition fee should be added to the msrp - correct?

 

MSRP does not include any fees, it is the price of the car as suggested by the manufacturer, in fact MSRP does not even include the manufacturer to dealer transport fee.

 

A dealer "doc" fee is the cost that dealers charge for their office to complete and prepare all documents for the customer to sign and clear the car. It is pretty standard in today auto dealerships. Doc fees are regulated by each state as to the amount each dealership in a specific state can charge. All customers get charged the same. Florida can charge the most fee's.

See this link......

This will help and everyone should be aware of these extra charges....

Average Dealer Documentation Fees by State

Hope this helps answer a few questions.

 

I went to the "build your jag" site and captured a screenshot of the extra "acquisition fee":

https://www.dropbox.com/s/2oz767iocg18jsw/Photo%20Apr%2003%2C%208%2023%2019%20PM.png

Looks like there's an additional $995 "destination/handling charge" that isn't included in the standard build price displayed when you build your car online.

 

Every car that is sold has a destination fee, which covers the transportation of the car from the point of entry into the USA to the dealership. Consider that Jaguar has to have these cars shipped by overseas transport, there is a cost for that. These componets are called a "destination fee".

I suggest that you go to New Cars, Used Cars, Car Reviews and Pricing - Edmunds.com and build your car at this site. It will provide MSRP and Dealer cost for the car, adding in "destination fees".

That should provide a true cost of MSRP vs dealer cost.

Hopefully this information helps your cause in closing a deal.

 

That's still not an acquisition fee. The acquisition fee is the document/filing fee charged by the dealer when you buy your car. They're essentially charging you for the time it takes to sell you the vehicle. As an earlier post shows, the state law in Washington limits this fee to $150, which is consistent with my experience. Other states have no limits. On all my purchase paperwork it also clearly states that the fee is negotiable, wording that is probably required by state law as well. But it's really not.

Addendum: I've also heard of one local dealer adding a "B&O tax" to the deal. This is shady (and maybe illegal?). B&O taxes are never a customer's responsibility, but I'm sure many people just assume its some sort of sales tax and pay it anyway.

 

The only time that I have ever seen an "acquisition fee" is in a lease. This is a fee that the leasing company charges to acquire the car for you and is just an adder that pumps up the capitalized cost that the lease is figured on. This fee is usually non-negotiable.

Another non-negotiable fee that a leasing company charges is the "disposition fee" at the end of the lease. This is not included in the capitalized cost and is charged if you just turn in the car and do not exercise your purchase option.

Just a couple of ways they get some more money out of you buried in the fine print of the lease.

 

Franchised dealers are independent of the manufacturer, and may sell the vehicle at whatever price they see fit. Very few cars are sold at MSRP, and virtually all are discounted. But if a particular vehicle is in short supply and there is high demand, a dealer can ask well over MSRP by adding a supplemental window sticker for BS options such as paint protection, carpet protection, wheel locks and other dealer-installed items of dubious, if any, real value.

If a dealer insists on charging you the "doc fee" and says he is required to charge everyone the same amount, then tell him you won't pay it and if he wants to make the sale then he should further reduce the selling price by the amount of that doc fee and then add the doc fee back so that you will pay your net price. I've seen doc fees in GA of $500 or more - a ripoff; simply additional dealer profit. Fight back! You're in the driver's seat - you have the money and they want it! Walk out the door and see how fast they run after you! They don't want to lose a sale over a few hundred bucks.

Everything is negotiable. But remember that the dealer is a professional and he has the upper hand because he knows all of the tricks of the trade. You're the sheep going to slaughter because you've become emotionally involved and are in love with that XKR!