Car Preparation Fee Fraud

This underhanded auto dealership scam allows a dealer to make a quick profit from customers in the range between $500 and $2500. This also depends on how much the customer is willing to spend. Even though it is perfectly legal, it is considered a scam because auto dealerships are able to recover these preparation fees from the factory. They will make up some B.S. excuse that they are trying to recoup their losses when they discount the manufacturer's suggested retail price (MSRP).

After you have worked so hard to haggle with them on the price, the dealer attempts to jack up the price in the end. They even tell you they are doing this. If you have paid the entire price that the dealership was asking, you are actually being screwed.

You are paying for the highest price anybody would pay for a particular model plus $500 in "pre-delivery service fees" that they will recoup from the factory anyway.
What do preparation fees cover?

In general, preparation fees cover the peeling of plastic off the seats, checking of fluid levels, vacuuming the interior, and washing and waxing the exterior. This is perhaps about 2 or 3 hours of work. They may tell you that you must pay a fee for this, but if you are adamant, you will not have to pay anything because it is already paid for and listed on the MSRP. The fact that you are paying for something that is already paid for is called Double Collecting. Unfortunately for the consumer, this practice is widespread at many car dealerships. You really want to avoid this at every chance.
How do I weasel out of paying the car dealer's preparation fee?

If you refuse to pay for the preparation fee, just tell the car dealership to credit you the amount of the preparation fee service on your contract. If they do not honor your request, just get up and walk out. The only thing you lose out on this deal is your time. If the preparation fee is $500, you will have to work many hours to earn that money. Keep in mind, that it is perfectly legal for a car dealership to tack on preparation fees on your final bill, but if you go into the dealership armed with knowledge, you can save yourself a ton of money.
What to do if you are a victim of this scam

If you believe you are a victim of this preparation fee scam, you really can not report it to the authorities if the car dealership was upfront, though underhanded, about their fees. However, you can report them to the Better Business Bureau and lodge a complaint about their dishonesty. By doing this, you can report that the dealership engages in this practice on record, and perhaps somebody else can benefit from your experience.
There are many forms of consumer fraud going on nowadays. It is up to you to educate yourself on what is or is not legitimate. Hopefully, our advice will minimize your chances of becoming a victim of car preparation fee fraud.

Fabiola Castillo is an online marketer for the website NinjaCOPS.com. This virtual store specializes in personal defense products where you can buy Mace pepper spray, kubaton keychains, hidden video cameras, cheap stun guns, nunchaku tricks videos, telescopic steel batons, and many other home security products.