Originally Posted by TaylorMcStrat
I'm not trying to defend anything - just explain it. Obviously, furniture stores have high margins on their merchandise, and more inventory turnover....
Actually furniture has a much lower
turnover of inventory. This and the square footage floor cost is why their margins are higher.
You call it a "deceiving money grab" for a Harley dealer. How do they deceive you? Do they not show you the fee before you sign on the bill of sale? Do they try to hide it during the sales process?
Doc fees are similar to "shop supply" charges. If they're intentionally left out of the price, or hidden is such fine print as to be invisible and added later, they are deceiving. Look at it this way; if they do need to collect these costs and did not want to deceive, they would simply included them in the price posted. Naturally the price posted would be higher and that may put off the potential buyer, hence the trickery. Ask any car salesman.
The above applies less to dealers who at least list these charges on their tag, but it's still questionable IMO. Look how many buyers (often new first time buyers) who may know the MSRP on the vehicle they are interested in purchasing, are instructed by dealers that that MSRP is not the price you pay. "There's the $250 doc fee to cover all the paperwork that the manufacturer and state require us to do." (actually 15 minutes by their $15 the employee). Is this not deceitful?
Their latest lie is to say "the state requires us to collect this doc fee from everyone, there's nothing we can do about it". In reality the attorney general for the state of WV got tired of so many complaints from customers about this tactic, some paying one amount, others negotiating it down, or off all together, that they require dealers now; "if
you're going to charge a doc fee it has to be the same for everyone." See how dealers misrepresent that "the state requires us to collect this amount"?