Lexus IS500 - NJ Dealer Fees

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Hi - Dealing with a NJ Lexus Dealer on an IS500 and asked them for their OTD pricing with a breakdown of the fees.

Got them to $2,000 off sticker but looks like they’re clawing back most if not all of that discount with their fees. Which ones of the below aside from the the taxes are not “essential” fees and not just additional ways for the dealer to get more profit? I understand Doc Fees and registration fees are part of it but NJ doesn’t cap them at a certain amount like NY.

MSRP: $66,875
Selling Price: $64,142.60
Doc Fee: $799
Tax: $5,760.90 (NY Tax 8.875%)
Luxury Tax: $259 (0.4%)
Dealer fee: $1,297.50
Acquisition Fee: $799
Plates: $350
Total OTD pricing: $73,408

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The dealer fee is probably the thing I would ask to be removed. They may have added a fake ceramic coating or some film somewhere or a VIN etching or some other security service, etc. I can’t comment on the discount being good or bad for this specific vehicle, but that dealer fee of almost $1300 is BS.

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I am looking to buy/finance this vehicle - am I wrong in thinking that acquisition fees are for leases? I didn’t see one when I got my car last year…

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Yes, it is for leases. For the finance deal, there may be stamp fees.

As far as the discount: IS500 doesn’t get much discount. Please check with LH broker if they can do better than your local dealer.

It really doesn’t matter. If a dealer has a " dealer fee " then you can expect to get more discount to offset the extra cost.

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The former is NY tax, the latter is NJ

Which state are you a resident of?

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I’m a NY resident. It was a NJ dealer but wanted to clarify that I would be registering in NY so hence NY tax shown.

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Luxury tax should only be levied if the car is registered in NJ, at least as far as I know…

That would be interesting (read: insane) if it’s actually a tax paid on cars sold in NJ, not just registered in NJ, but I am not 100% sure on that.

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NJ Division of Taxation - Luxury and Fuel-Inefficient Vehicle Surcharge.

It’s not clear from this website if the car needs to be registered in NJ or only bought in NJ to qualify for this luxury tax.

It sounds like it is cars sold in NJ regardless if the person is registering out of state from other sources but I’ll see if any NJ people can say if this is false.

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I am shocked you are finding better pricing in NJ then NY.

NJ Lexus dealers are usually no fun.

Keep in mind in NY the dealer fees are more tightly regulated and often much lower.

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Here is the actual law:

https://pub.njleg.gov/bills/2006/PL06/39_.HTM

It’s not purely clear to me, but it sounds like the tax is necessary to be paid for vehicles that are getting a title in New Jersey, meaning that you should not be paying it if you are purchasing from out of state.

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This is correct. There is no NJ tax collected for an out of state reg sold in New Jersey.

The only potential NJ regulatory fee is new tire fee which is 1.50/tire. Out of state could also be exempted, I’m not clear. NJ Division of Taxation - Motor Vehicle Tire Fee

Edit: out of state reg doesn’t pay tire fee, either.

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