Dealer Sales Commission - Is this for real?

Ask the Hackrs
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1

Hi,

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.

2

I’ve never seen such a thing before

3

Screenshot you can share?

4

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

5

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

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6

Lenders do it all the time - origination fee - lol

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7

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

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8

Yes pretty much.

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

9

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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10

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.

11

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

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12

Thanks. Is it negotiable or avoidable?

Also, is this just a Toyota or Lexus thing?

13

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.

14

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?

15

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.

16

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

17

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).”

18

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

19

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

20

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