Dealer Prep/Doc Fee
When I got home I pulled the paperwork for my Street Bob that I purchased last April from a different dealer. There's no "Prep" and "Doc Fee" on that paperwork but, there is a "Negotiable Dealer Conveyance Fee" of 249.00.
Last edited by SluggoMagoo; Feb 5, 2019 at 05:05 PM.
When I got home I pulled the paperwork for my Street Bob that I purchased last April from a different dealer. There's no "Prep" and "Doc Fee" on that paperwork but, there is a "Negotiable Dealer Conveyance Fee" of 249.00.
Anything called a "dealer prep" or "prep" fee is a total effing ripoff. Every cent is pure add on profit and nothing else. Do not pay it.
Here is my understanding of exactly how dealer prep, or as it's more correctly called, the PDI or Pre-Delivery Inspection, works. Please, anyone who is now or has worked for a dealership, please chime in if I'm incorrect on some of it.
1. Every dealer sets the maximum amount of time that a tech is allowed to spend on the PDI. I believe my local dealership allows 3 hours.
2. The newest, lowest paid techs do PDI's, not the most experienced techs.
3. Since this is NOT billable hours, the tech is paid the non-billable hour rate.
4. I would guess that in most dealerships, the non-billable rate is around $15/hr, give or take. Actual "apparent" cost to dealership: $45.
5. It is obviously in the MoCo's personal interest to make sure the PDI gets done, because if it isn't, and the new buyer rides out into traffic with brakes that don't work, and gets injured or killed in an accident, the dealer and the MoCo will get sued, and they will lose.
6. Because of the need to make sure the PDI gets done, the MoCo reimburses the dealership for the cost of doing the PDI.
7. Net cost to dealer for "dealer prep", zero.
Again, any dealership staff, do I have this right?
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