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Dealer Prep/Doc Fee

 
  #1  
Old 02-05-2019, 06:01 PM
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Default Dealer Prep/Doc Fee

Had a deal on the table for a 2017 Road Glide standard with 6800 miles. I liked the bike. Vivid Black with chrome. General Manger came over and sweetened the deal and discounted the price by $1000. I wanted to add a few options and a year extended service plan which was another $4300.00. Out the door price would have been around $25,300 and change. That's with tax and registration delivered to my garage. I looked over the sheet and the "Prep" and "Doc Fee" was $950. Basically $50.00 shy of the GM discount. I didn't sign.
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; 02-05-2019 at 06:05 PM.
  #2  
Old 02-06-2019, 09:07 AM
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For Me - If the $25,300 had been acceptable out the door. I probably would have signed. Don't care what silly numbers they come up with to get there.

Originally Posted by SluggoMagoo View Post
Had a deal on the table for a 2017 Road Glide standard with 6800 miles. I liked the bike. Vivid Black with chrome. General Manger came over and sweetened the deal and discounted the price by $1000. I wanted to add a few options and a year extended service plan which was another $4300.00. Out the door price would have been around $25,300 and change. That's with tax and registration delivered to my garage. I looked over the sheet and the "Prep" and "Doc Fee" was $950. Basically $50.00 shy of the GM discount. I didn't sign.
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.
 
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  #3  
Old 02-06-2019, 12:15 PM
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Sorry I wasn't clear here. I thought the "Prep" and "Doc Fee" @ $950 was in retaliation to my discount. I think it's garbage charges. Does anybody else have input on this issue.
 
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Old 02-06-2019, 01:01 PM
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Originally Posted by SluggoMagoo View Post
Sorry I wasn't clear here. I thought the "Prep" and "Doc Fee" @ $950 was in retaliation to my discount. I think it's garbage charges. Does anybody else have input on this issue.
Negotiate the out the door price. Tell them you will buy it at $23.5K out the door but that is it. If they decline your offer, keep searching. You can almost find a 2019 RG Standard in that price range if you look hard enough.
 
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Old 02-06-2019, 01:11 PM
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I'm specifically asking about this "Prep" and "Doc Fee" @ $950. Seems like a fabrication of sorts to dick up the deal you thought you were getting.
 
  #6  
Old 02-06-2019, 01:21 PM
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Originally Posted by SluggoMagoo View Post
I'm specifically asking about this "Prep" and "Doc Fee" @ $950. Seems like a fabrication of sorts to dick up the deal you thought you were getting.
Well, that depends. A "documentation fee" may be mandatory in your state. You would need to do some digging on that one.

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?
 
  #7  
Old 02-06-2019, 01:42 PM
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How much prep can there be on a bike with 6,800 miles (assuming it was properly serviced at 5,000 miles)?
 
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Old 02-07-2019, 06:17 PM
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I had been internet shopping for a Harley for a few weeks, checking out all of the used bikes at dealers close by. A certain dealer had one that I was entertaining. Most of the guys in the crew I work with ride Harleys, so I asked the foreman if we could stop at the dealer. He's a Harley head, and agreed. I walked right over to the bike when I saw it, a 2014 Road King with 16K on the dash. I bullshit with the salesguy for about five minutes, and said I wanted the bike. He asked if I could wait a minute, and I said yes. He goes o the sales manager, and he starts typing stuff into the computer. He, (the sales manager), walks over to me, and hands me a paper. He had it all broke down. Asking price, prep and freight, and he was nice enough to include a full service plan. All for a mere $383 a month for seven years. I chuckled, and thanked him. I then told him that I had been shopping for a bike for a few weeks, and was about to be on my six month, winter hiatus. I let him know that I was serious about the bike, and had a few others at various dealers I wanted to look at. I told him I was paying cash, and offered him $3800 less than the price on the bike. He laughed, walked away, and talked with a guy behind a desk. He came back, and counter offered with a price $1000 less than what was on the bike. I told him my offer was firm, and it was an out the door offer. No tax, no prep, no title fees, out the door. He said again he couldn't do it, but wanted to sell me the bike. I said you can either sell it today for my offer, or the guy that plows your parking lot can stare at it while he plows all winter. He asked if I could throw in another $400 so he could pay his sales guy his commission. I said, no offense, the salesguy talked to me for five minutes, if he makes hat much money, I want an application too. I stood firm on my offer, and he extended his hand a said 'sold!!!'. We did the paperwork, and he tried really hard to get me to ad a service plan. He had all the different ones printed out. I thanked him, but declined. I went home, called Uber for a ride to the dealership, and rode it home.
 
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  #9  
Old 02-07-2019, 08:02 PM
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Originally Posted by Het View Post
I had been internet shopping for a Harley for a few weeks, checking out all of the used bikes at dealers close by. A certain dealer had one that I was entertaining. Most of the guys in the crew I work with ride Harleys, so I asked the foreman if we could stop at the dealer. He's a Harley head, and agreed. I walked right over to the bike when I saw it, a 2014 Road King with 16K on the dash. I bullshit with the salesguy for about five minutes, and said I wanted the bike. He asked if I could wait a minute, and I said yes. He goes o the sales manager, and he starts typing stuff into the computer. He, (the sales manager), walks over to me, and hands me a paper. He had it all broke down. Asking price, prep and freight, and he was nice enough to include a full service plan. All for a mere $383 a month for seven years. I chuckled, and thanked him. I then told him that I had been shopping for a bike for a few weeks, and was about to be on my six month, winter hiatus. I let him know that I was serious about the bike, and had a few others at various dealers I wanted to look at. I told him I was paying cash, and offered him $3800 less than the price on the bike. He laughed, walked away, and talked with a guy behind a desk. He came back, and counter offered with a price $1000 less than what was on the bike. I told him my offer was firm, and it was an out the door offer. No tax, no prep, no title fees, out the door. He said again he couldn't do it, but wanted to sell me the bike. I said you can either sell it today for my offer, or the guy that plows your parking lot can stare at it while he plows all winter. He asked if I could throw in another $400 so he could pay his sales guy his commission. I said, no offense, the salesguy talked to me for five minutes, if he makes hat much money, I want an application too. I stood firm on my offer, and he extended his hand a said 'sold!!!'. We did the paperwork, and he tried really hard to get me to ad a service plan. He had all the different ones printed out. I thanked him, but declined. I went home, called Uber for a ride to the dealership, and rode it home.
How about a pic of the new King? A little snow in the background wouldn't hurt, seeing how the dealer's lot gets plowed all winter.
 
  #10  
Old 02-07-2019, 08:37 PM
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Originally Posted by Het View Post
Asking price, prep and freight, and he was nice enough to include a full service plan. .
Prep and Freight on a used 2014 bike? Hmmmm
 
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