Dealer Sales Commission - Is this for real?

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Trying to work through a lease deal and saw the dealer charging a 2% sales commission over and above a $799 Doc fee. Is this typical or mainstay now?

Don’t remember paying sales fee in my previous deal 3-4 years ago.

Thanks much for your help with me question.

I’ve never seen such a thing before

Screenshot you can share?

Yes this is a thing. Happening with Toyota and Lexus recently.

Is this basically just a different way of writing “ADM”?


Lenders do it all the time - origination fee - lol

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It’s as real as your ability to walk away.


Yes pretty much.

I think for the dealer it changes the amount the dealer has to pay management or staff.

Sounds more like the buyer now paying the sales commission, instead of the dealership. Interesting way of flipping it around and passing that expense to consumers…

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Is 2% norm for dealer to pay their sales person once the sale is completed ? Looks like they passing on this to the buyer now. Atleast it’s not 18% Tip on a party of 6 or more.

The salesperson won’t benefit from this. They’ll make what they were making before.


Thanks. Is it negotiable or avoidable?

Also, is this just a Toyota or Lexus thing?

It’s a thing. I know a couple of shops that do it for walk in or call in customers but will gut it for our prospects specifically.

The other charge I saw that seemed elevated was the government fees @ $585.

Isn’t that just the title and plate fee for $125-150 - What else could go in there?

The exact fees will depend entirely on your state/city/county etc.

Also if you’re just in the shopping phase and soliciting a quote over phone/email many dealers will stick a generic ~$500 in there for gov’t fees to cover their bases (especially if you’re not local). If you were to agree to a deal then the fees would be more precise on the actual contract.

Thanks Jeff - I’m local and remember paying $125 in my last deal with the same dealer.

Just noticed the below fine print at my local NY Lexus dealer. Clever way of saying ADM, I guess.

“*Prices exclude tax, tags, freight, $175 processing charge (not required by law), and sales commission charge of 2% (not required by law).”

Just ask them to increase the discount to offset it. I recommend awaiting the last day of the month to try this.

So if it says “not required by law” I should be able to exclude it. Right or in this market I’m a dreamer?

You certainly don’t have to pay it. But, the dealer is the one holding the cards here.

Shop around, there are plenty of dealers in the tri-state or hit up leasecompanion