In Pat Goss’ latest Car Buying Tips video, America’s Trusted Mechanic advises you to look for hidden processing fees that may be embedded in your contract when buying a car. In his professional experiences, Goss has come across contracts soliciting hundreds of dollars in processing fees. While dealerships are entitled to charge for the labor of managing paperwork and tasks of that nature, some fee prices are too high and illegitimate.
To learn more about contracts and find out what Goss recommends you do if you find hidden fees in your paperwork, be sure to watch this video.
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Things to watch out for in a contract are hidden fees for various processes and so on.
Most dealerships are going to charge you a processing fee and that processing fee, oh 100 to 150 dollars, that’s for handling the paperwork and things like that, and certainly they are entitled to be paid for. I’ve seen contracts where there is 1,500 dollars in processing fees, or even 6, 7, 8 hundred dollars. These are not legitimate because there is no way they could spend that much time and effort in handling the paperwork.
So watch out for hidden fees. If you find a hidden fee in the paperwork say ‘No, I’m not going to pay that and if they refuse and tell you that its mandated by law or that they have to do this or whatever their excuse might be, it’s time to walk.
The common theme is always, always be ready to politely get up and walk out of the dealership.