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Discussion Starter #1
OK, I see by several posts that dealers "have to" add on several items. I don't know what ones are real and what ones aren't. I have seen the advertising fees and paperwork and license fees and I have seen those in previous car purchases. But what are Wholesale Finacial Reserve and Factory Holdback ? Are these tacked on to the bottom line, or are they included on the Maroney sticker? Maybe RAV4POWER's wife, who works at Toyota can explain....
 
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No problem.

Yes, the sticker includes Wholesale Finacial Reserve and Factory Holdback.

Doc fees usually vary from dealer to dealer. Your license and registration fees go to your local DMV. Both of these fees are added to the bottom line. You will also have to pay for an Inspection, and in the state of NY there is tire tax of $12.50
 
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Holdback is fairly invisible to the buyer. It's not a separate line item anywhere. Holdback is payment from the manufacturer to the dealer (~2% of MSRP for Toyota) to help offset the financing costs and pay salespeople's commissions and such. It basically works out that holdback is pure profit that is usually never seen or realized by the consumer, because it doesn't show up on the price of the vehicle, either MSRP or "invoice." The dealer pays the cost of "holdback" when they purchase the vehicle from the manufacturer and then gets it back at a later date. It artifically inflates how much the car costs the dealer, so that they can show you less profit.

Look here for more info: Edmunds on Holdback

Wholesale financial reserve has nothing to do with the sticker or invoice price of the car, and is therefore not "included" on those either. WFR is what Toyota pays the dealer if you finance through Toyota. Pay cash or finance through you own bank or CU, and this doesn't factor into things at all. Best way to handle WFR is to know your score, know what you can really get for financing, and if the dealer can beat that, more power to them, if not, finance elsewhere.

Doc fees may or may not be inflated, depends on the dealer.

I'm not knocking dealers here at all. I don't want to imply that anything here is "unfair." All Toyota dealers get the same holdback. All dealers are entitled to a fair and reasonable profit.

All of these issues will be of no importance if you negotiate on an "out-the-door" price and go with who can offer you the lowest OTD price that you are willing to pay.
 

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Discussion Starter #4
Fees

Thanks for the feedback. This explains a few terms I never saw a few years ago. I just wanted to know what and where they come in so I don't have to explain to the wife why the dealer just had to add a thousand on to the 28 thousand or so I have to pay for the car. I think there is a cap on how much Iliinois dealers can ask for the DOC fee. Some dealers want it, others don't.
I have E-mailed Sams Club to start the ordering process and am just waiting for a response. I better here from them tonight.....
 
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