Need Advice! Am I being Ripped Off?

[pugmom]

Hi,I am looking to purchase a new Versa SL CVT hatchback with the ABS package (that's it!).

I've been in contact with 2 local Nissan dealerships where I live, and these are the quotes I'm getting:

Dealer #1

MSRP: $16,675Invoice: $15,976

Dealer #1 says they can sell to me at the invoice price of $15,976 (sounds good)but then.... with fees (tax, title, license, document fee,etc) they tell me to expect to add 11% - 12% to make a total of around $17,893.12 (If I'm doing my math right here...)

Dealer #2

MSRP: $16,425

Invoice: $15,792

With their taxes, titles,,etc I'm told it would be"$17,982.66 Out the Door"

Am I missing something or aren't these prices way over MSRP and thus a rip off?!!and isn't the golden rule "Don't pay over the MSRP"??

Can someone help me and tell me how to negotiate all this.....Is it normal that these prices increase up like this with all the fees?Any advice would help me so much.Thank you,Amy

[motoguy128]

Sales tax here is 6%. Title, license and registration depend on where you live. They can be up to $500. 11-12% is a little high. Destination is up to $800, but that's supposed ot be included in the MSRP... but maybe not the invoice.

[pugmom]

The destination charge IS included within the invoice price I was quoted...but I still don't understand how the fees can jump the price up that high?I live in Tucson, AZ (not an expensive town)so it just seems a bit high to me too....

I guess I'd have to have the dealers go over all fess line by line with me.

[matttail]

your state DMV can tell you about the fees too - it's most likely not something the dealer is making up - but simply what it will cost you in your state. And cost of living for your town has nothing to do with state fees.

[Robi]

Look pal, just go for it. A few hundred dollars one way or the other is really no big deal. If you are close to deciding think about the dealer and how they treat their customers. Ask around ... then go for it. The V is one sweet little car and get your color and enjoy. The wife picked Magnetic Grey for ours with all the bells and whistles. With zero percent financing how can we go wrong ... but hey that's Canada and we are crazy about our cars and winter driving ... eh.

[lakebrenda]

That's the same car and options I bought in September last year. My price was almost the same minus my $600 trade in and Palm Beach County Fl is 6 1/2 % sales tax. I shopped all local dealers around and that was the best I could do. I love the car!! It is worth every penny to me. I am a"little old lady" driver but it zips around town. The thing I like most about it is fantastic stereo (came with it) 6 CD and I can turn on a dime coming out of my local Starbaucks!

[ThirstyRoss]

Something is fishy here.

Either you are being quoted for different cars, or one (or both) of the dealers are lying.

The MSRP and Invoice prices should be the same for both dealers. The MSRP is set by Nissan itself and you can find out what it should be on the Nissan website (Price Your Versa).

I also wouldn't trust the dealer to give you an accurate invoice price, if they even give you one at all, it better to find that out through a reputable source (consumer reports, car cost canada, etc)

The extra fees like A/C Exise tax, Fuel Tax, Sales tax, and so forth can definitely add a couple thousand to the price of the car, depending on what your provincial/state taxes are.

My advice, find the invoice price of the Versa with the options you want (from one of the sources mentioned above, not a dealer), and tell the dealer you will pay them the invoice price + 6% for the car. You will still have to pay taxes and freight, etc, but those aren't really part of the cost of the car (they're fixed fees) so don't worry about them so much.

[Ever Victorious]

Dealer #1 is simply estimating fees without giving you a concrete number. Not uncommon if you haven't gone through the whole paperwork process at the dealer.

Dealer #2 is offering a similarly equipped car. The difference between MSRP and invoice on the two cars looks like it could be attributed to a difference in packages... maybe one has ABS, and the other has Convenience, or something like that.

Not knowing the local fees for your area, I couldn't tell you if this is normal or not. Knowing the local fees in MY area, it wouldn't be far off. We have an 8.9% sales tax (yes, second highest in the US, thank you very much), $35 documentation fee, $30 licensing, $40 local RTA tax (king-pierce-snohomish counties only), and a couple other small transportation taxes (which, in essence, make up approximately 1% of the car's purchase price). Here, you can always accurately estimate by adding 10%. $15,976 x 1.1 = $17,573.60... Not very far off from your dealer's figure.

Of course, it is ALWAYS prudent to go through fees line-by-line. Things that are normal (at least in the US) will be sales tax, destination charge, documentation fees, licensing fees, and local transit fees.

[leighvan]

If you are a COSTCO member, use their car service to identify a dealer in your area that has their approval, should keep the mumbo-jumbo to a minimum.

[KimberKenobi]

Also, look at the licensing fee... and then, when you get your registration receipt, look at what they paid for the licensing fee.

In Kentucky, a personalized plate stays with the driver (not the car) so mine was already paid through the year... They charged me $87 for my licensing and paid $12 (county fees) so I'm going to get the remainder back - come hell or high water.

Also, just because I'm confused on the understanding of this... Paying (or not paying) over MSRP does NOT include all the taxes and fees. If you're paying less than MSRP, but the taxes and such total more than that, that is just what happens when you pay your fees.

[pugmom]

Thank you for your advice, everyone I called the Arizona state insurance dept today to see if I could get some answers- I just recently moved here from New York....and I was told that the city tax is around 9% on vehicle purchases.It does seem a bit high....but seeing as this is a city where so many people rely on the automobile (as opposed to mass transit) -- that's why the taxes are so high. Guess that's the way they offset the city's costs on stuff like road construction, etc (not that I'd know about such things).

Bottom line...I want this car- and Nissan does offer the 4.9% x 60 financing on the Versa...which helps alot.Hopefully I'll be posting pictures of my new Versa in the next few weeks Thanks again everyone!

[KimberKenobi]

woot!!