Our Prices Are Legit – No Hoops To Jump Through

WHERE’S THE CATCH?

Let’s put it in clear language. THERE IS NO CATCH with our pricing.

We get customers that don’t believe there isn’t a catch with our pricing. So let’s walk through the “typical dealer’s catches” and why we decided against that mentality. And the most important thing to gather from this post is ALWAYS READ EVERYTHING ON THE WEBPAGE ALL THE WAY TO THE BOTTOM! Here is an example dealer’s disclosure to watch out for.

ADDENDUMS

You might ask, what do you mean by addendums? Addendums are additional dealer items added to the price of the vehicle. You might ask, “Wouldn’t I see that in the pricing on a dealer’s website?” The answer, unfortunately, is typically no.

In most cases, these additional accessories, purchase requirements, or finance requirements are shown in the fine print at the bottom of the dealers’ webpage. In rare cases, the addendums are placed prominently and clearly. Bravo to those guys. But here are the common signs the dealer is hiding these addendums from the online price.

1. Disclaimer below the price stating that pricing excludes any dealer-installed options displayed on the window sticker addendum.
2. Scroll to the very bottom of the vehicle detail page (VDP) and look for language about what the price excludes, and you will find that it excludes dealer-installed options.
3. Scroll to the very bottom of the VDP and look for language about the cost of the “package” the dealer offers. It may be a “Protection package,” “Value package,” or another dealer-branded set of dealer add-ons. And then, it will say the vehicle is installed with that package for some dollar amount.

What are some of the items dealers add? 

These items can range from added accessories to strict purchase requirements. Here is a list of common items you might see.

ACCESSORIES

• LoJack – this is an aftermarket GPS tracker that helps recover your vehicle if stolen and provides other diagnostic data. (GM has OnStar that acts similarly)
• Door Edge Guards – A helpful add-on for people with children to protect your door and the cars around you.
• Window Tint – This makes the vehicle look more aggressive and does help with the sun.
• VIN Etching – etches the VIN of the vehicle into the windows of the car. They supposedly make it harder for a thief to sell your vehicle.
• Nitrogen in Tires – dubious practice and questionable if it has any benefit.
• Wheel Locks – Locks the lugnuts of your wheel, making it harder for a thief to steal.

The number of accessories that a dealership can add is nearly endless. Most accessories offer some value; the important thing is determining what that value is worth to you. Don’t overpay for an accessory that you don’t want or won’t use.

Some of the items are considered FTC targets as fraudulent add-on products. Here is the quote from the FTC. “Ban fraudulent junk fees: The proposal would prohibit dealers from charging consumers junk fees for fraudulent add-on products and services that provide no benefit to the consumer (including “nitrogen filled” tires that contain no more nitrogen than normal air).”

We believe accessories should be added a-la-cart on a customer-by-customer basis and should not be a mandatory add-on. In most cases, dealers have added these options to pad profits on the deal. We will talk to you about any service contract, protection plan, or accessory we think would benefit you and allow you to decide whether you want them or not. 

Do we have add-ons? 

We do add certain accessories/upfits that cannot be removed; these items range from spray-in bed liners to cab chassis beds. It can’t be removed easily, so we add it to the pricing on the vehicle, but we itemize it in the pricing box on our website. On chassis cabs and box delete HD trucks, many people want the vehicle completed and ready to go. So we will add service bodies, flatbeds, grille guards, and other items to complete the vehicle for use. On a cab and chassis truck, we cannot order it with leather, so we add leather to some of those vehicles due to customer demand. But our addendum items are displayed on the website and priced so you can see what we have added and how much we charge.

DOC FEES

We did have a $199 doc fee at one time, but we eliminated it. While our doc fee was tiny compared to some dealers’ doc fees, we believe it is a better customer experience to only have to worry about taxes and government fees. In most cases, a doc fee is a surprise fee added during the final steps of the purchase process. Dealers have disclosures buried on the page that says the price does not include document fees (or use other terms like customer service fees, administrative fees, etc.). It is hit or miss as to whether the dealer discloses how much the fees are. For example, there is a very large dealer that sells a tremendous number of new Chevrolets. But the dealer has a $999 fee noted at the bottom of the page of a vehicle that isn’t always noticed by customers looking at the dealership’s price online, which is why when price shopping dealers, it is essential to pay attention to the fine print.

Dealers that charge these fees are not bad people or crooks. Doc fees have been a part of the dealership world for decades and only in the past ten years have some dealerships started to phase out the old practice. Doc fees originated as a way to help dealerships handle the overhead associated with processing and paperwork. Unfortunately, in today’s automotive market, they act more as a way to obfuscate a dealership’s actual vehicle price. The usual doc fee in the Southeast is between $500-$1,000. 

TRADE IN REQUIREMENTS

Some dealers won’t sell you a vehicle if you don’t have a trade-in. You read that right. They also will claim the discount from MSRP is only available with a trade-in. This is against GM’s rules, and these unethical dealers are trying to take advantage of customers in a seller’s market. GM doesn’t want customers being tricked into thinking a price is good only to find out later there is a condition to receive the price. 

You are never required to trade in your vehicle with us at Donohoo Chevrolet. Trading into a dealership is usually easier than selling yourself and sometimes offers a tax credit depending on your state, but it shouldn’t be a requirement for purchase.

These addendums to deals can be extremely lengthy. Check out this Mercedes dealership’s requirements for buying one of their G-wagons. 

FINANCING REQUIREMENTS

Some dealers will not sell you a vehicle unless you finance through the dealer. For someone that wants to pay “cash” the dealer may refuse to sell the vehicle. While you could finance and immediately pay it off, many people don’t want to affect their credit. Some dealers will tell the customer they must make payments for a certain number of months if they finance. Read your finance contract. That is rarely true, and you should be able to pay it off without penalty. Dealers say that to ensure the money earned from the lending source doesn’t get taken back. 

By the way, just because a dealer makes money arranging financing doesn’t mean you are getting a bad deal on financing. Lenders pay dealers to handle financing because dealers do it more efficiently than lenders. It is easier for the customer to do everything in one place instead of leaving the dealership, getting financing arranged, and returning to the dealership. If you walk into your local bank branch to get an auto loan, your interest rate is usually in line with the dealer’s rate. The local bank branch staff must be paid for handling the loan, the same as the dealer.

We do NOT require you to finance with us. In certain instances, GM will run incentives that are only available if you finance with GM Financial, but that is a GM decision, and GM rebate is tied to that decision, not ours.

CONCLUSION

We hate how complicated shopping for a new vehicle has become. However, reading the fine print can be the difference between a great deal or one that haunts you for years to come. Remember to ask questions.

• What are the addendums, and do I want to pay for items I may not want?
• Does the dealer require financing or trades? 
• What are the additional fees not included in the advertised price? 

We believe that transparent and clear pricing is what customers truly want, and our customers find our approach refreshing. If a dealer is hiding fees, requirements, or add-ons in the fine print, they are weaponizing consumer ignorance to pad their pocket. If you do your job as a consumer and pay attention to a few details, you will save money on your vehicle purchase.

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