Dealer deliver charges - Please explain

naddis01 · 12-09-2012, 11:27 PM

I am currently getting quotes for a new ute and the dealer delivery charges in the quotes seem to vary wildly. Can someone please explain what these charges are actually for? I assume pre delivery checks etc but almost $2k in some cases seems quite excessive. If it is actual delivery charges from the docks then it seems quite extreme.

Anyway some insight would be good.

Thanks in advance.

wrongwaynorris · 13-09-2012, 12:59 AM

The most expensive car wash you will ever see . Put absolutely bluntly and honestly they are a bloody rort .

vbvbvb088 · 13-09-2012, 03:36 AM

Back in the day (1986) I did ‘work experience’ at a Holden dealership. One task of mine was pre-delivery checks. Tasks to tick off: All lighting works, wheel nuts tight, fluid levels full, all locks and keys worked, wipers, boot popper, boot contents, tyre pressures, tyre caps, horn, heating/cooling, seat belts operation, window winders / elec windows, radio and tape player, park brake, owners manual, fit accessories as required. On hoist – exhaust rubbers. Calais pop up headlights. No licence – no drive it – but others did for auto / cruise control, gauges etc.. I live in same area now – near here is a white VL Berlina I did the check on. 20c an hour.

Fiesta_Man69 · 13-09-2012, 10:58 AM

Tell the dealership you know it is a rort and to dump the charge or you walk. They do it everytime they run a 'driveaway' price anyways so they can do it for you if they really want your business.

Otherwise, insist on being there while they carry it out - to do it properly actually takes time instead of the tick a box and not even look at the car business that goes on now. There are threads on here that have posts by mechanics who work for all brands of dealers saying that its a rort and no checks are made because of time pressures.

Mad_Pom · 13-09-2012, 11:01 AM

Surely it's not just the PDI.
Wouldn't this include all back of house functions to get the car to an on-road condition.
Order the vehicle in the first place
Organise the dealer finance to purchase it
Process the registration
Track the vehicle
Fuel
Clean

Not that I am saying that $2000 dollars isn't a very high price, but I am thinking there must be more to it.

Fiesta_Man69 · 13-09-2012, 11:10 AM

Quote:

Originally Posted by Mad_Pom

Not that I am saying that $2000 dollars isn't a very high price, but I am thinking there must be more to it.

No. There isn't. You are paying $2K for a car wash.

Dealer delivery exists only to inflate the profit margin on each car (which is usually pretty small, mind.) Most people are sucked in to the salesman's spin (read: lies).

Like I said there was a few good threads on here a few years ago where mechanics from all brands spilled the beans, and I'd take their (many times over) word over any car salesman's bs.

ratter · 13-09-2012, 12:40 PM

It covers the pre-delivery inspection which does get done (but how well depends on the tech doing it)
Fueling the car
Getting the car registered
pre-delivery detail
Finance cost against an average time that cars sit as cars are normally on floor plan finance
possibly another clean just before actual delivery
and includes the first service cost as well

there are probably quite a few other things that are included

csv8 · 13-09-2012, 12:43 PM

DASHGT has the fingers on the car industry pulse, can you enlighten us ? thanx

**Sorted** · 13-09-2012, 12:43 PM

What about Transportation Costs to get the car to the Dealer - surely the dealer has to pay for this?

Of course the car just arrives and all they do is wash it and give it to you lol

RedHotGT · 13-09-2012, 01:01 PM

Quote:

Originally Posted by ratter

It covers the pre-delivery inspection which does get done (but how well depends on the tech doing it)
Fueling the car
Getting the car registered
pre-delivery detail
Finance cost against an average time that cars sit as cars are normally on floor plan finance
possibly another clean just before actual delivery
and includes the first service cost as well

there are probably quite a few other things that are included

What some of you may have not noticed - is that the OP is based near Griffith NSW - not exactly Sydney or Melbourne.

So - the dealer has to somehow receive the car from the manufacturer - right? Let's say for the sake of this discussion that the car in question is a Ford Falcon.

The dealer needs to order the car (and pay for it from manufacturer)
It needs to be dispatched and transported to the dealer (Made in Melbourne - and based on retail price of transport (because I'm not a dealer) thats about $1350.00)
Then you've got your fuel
Pre Delivery Clean and Detail / Inspection
Registration/On Roads

Can easily see how it would add up to $2000 in a regional area.

FYI - I don't like the idea of dealer delivery fees either - but different areas would logically attract different costs. Its a necessary evil. Do dealers take a little advantage with it though? Probably. But to be fair - they've gotta make a buck too don't they?

But i'm sure there would be complaints if a Ford Dealer in Tennant Creek NT was selling a brand new Ford Falcon for $45k and you could buy the same car in Melbourne VIC for $40k

csv8 · 13-09-2012, 01:04 PM

Back in the 70's I lived in Kalgoorlie, I ordered an XLE Cortina. The train had to go to Perth then the car trucked to Kalgoorlie !!! They couldn't unload cars at Kalgoorlie. Hopefully, times have changed..

xisled · 13-09-2012, 02:06 PM

It also includes rego, ctp and stamp duty. That cost it self is between $600 to $1200 depending on the customers age, state and type of car.

naddis01 · 13-09-2012, 02:23 PM

Just to provide a little more detail. The utes in question are Ford Rangers and Mazda Bt50's which are all sitting on the lot. All are capital city based as I wanted to see what I could get elsewhere before nailing a price locally. The dealer delivery price is over and above rego. The one with 2k dealer delivery has a discount of around 7.5k.

XR6Runner · 13-09-2012, 04:05 PM

Quote:

Originally Posted by Sorted

What about Transportation Costs to get the car to the Dealer

Are you saying that if I sold you a product, you would be happy for me to charge you the amount it cost me to get it transported?

Quote:

Originally Posted by ratter

It covers the pre-delivery inspection which does get done (but how well depends on the tech doing it)
Fueling the car
Getting the car registered
pre-delivery detail
Finance cost against an average time that cars sit as cars are normally on floor plan finance
possibly another clean just before actual delivery
and includes the first service cost as well

That is all up to the dealer, you just pay for the finished product. There should be no extra charges for 'cleaning your car', 'pre delivery detail', or anything like that.

neptune blue · 13-09-2012, 04:18 PM

Quote:

Originally Posted by Mad_Pom

Surely it's not just the PDI.
Wouldn't this include all back of house functions to get the car to an on-road condition.
Order the vehicle in the first place
Organise the dealer finance to purchase it
Process the registration
Track the vehicle
Fuel
Clean

Not that I am saying that $2000 dollars isn't a very high price, but I am thinking there must be more to it.

its a crock
I got my pre delivery down from $1,100.00 to $200.00
they wash the car, quick vac and fuel it

dealer finance is not pre delivery and you pay for all the costs through the interest and finance charges
process the registration , they are there daily its not like they made a special trip just for you
order the vehicle well again if they dont order it they dont make a sale

also best time to buy a car off the lot is just before the end of the month bill is due (finance on vehicles sitting in the lot)
there have been a number of reports o TV about dealer pre delivery charges
take the quote to another dealer and to get your business I bet they reduce the pre delivery charge for an identical vehicle

cobramania · 13-09-2012, 04:48 PM

I just happen to have the new vehicle purchase contract papers for my FPV Cobra in front of me.
Under the details of purchase, sub-heading of Other Costs & Charges are these, (I ordered it in Oct. 2007 & given it's a limited edition car, they wouldn't give any discounts on purchase price or drop dealer charges): Registration Fee, Compulsory Third Party, Premium Number Plate, Dealer Delivery, Stamp Duty. I had to pay all of these.
Rego, Government charges, & all other charges, aren't included in/as part of dealer delivery charges, they're all separate. My dealer delivery charge was $3295.00 back in 2007, (Sydney Dealer).

As for what dealer delivery charges entails: transport from factory, pre-delivery check (oil, water, air, damage to paint, check all doors, windows & locks work, bonnet, boot & fuel lid releases work, keys & remote entry work, lights, instruments, & audio works, clock set to correct time, spare wheel, jack & tools in-place & secured, general, wash & clean) & time spent to do all the paperwork, fuel may be included, but mine was delivered with just under 1/4 tank.

As for whether all of that gets done & how well it's done is anyones guess.
If you get dealer finance, you pay extra fees as part of that.

Delivery charges would also include dealer running costs, but these are also factored into the actual purchase price of the car, the dealer buys the car from Ford for less than what they charge you for it's purchase. The dealers wholesale purchase cost, is less than their retail sale price to you, that's why they can have a list price, then offer you a discounted sale, they just reduce their profit margin on the sale. Dealer delivery is pretty much pure profit for the dealer.

P6LTD351 · 13-09-2012, 07:25 PM

How come I don't pay a dealer delivery fee for a TV?

I know some will say it is absorbed in the price but the RRP price on the manufacturer's site is usually more than the store price so that can't be the answer.

It's not as if I'm buying the car from ebay interstate. When buying a new car, you are buying it from an authorised dealer. It is a rort - plain and simple. Paying for fuel? That's like buying a TV and not having the power cord included.

Brent · 13-09-2012, 07:47 PM

Quote:

Originally Posted by xisled

It also includes rego, ctp and stamp duty. That cost it self is between $600 to $1200 depending on the customers age, state and type of car.

Not sure what state you're in, but that isn't the case in Vic. Stamp duty, rego, & ctp are all extras over & above dealer delivery charge.

P6LTD351 · 13-09-2012, 07:58 PM

Quote:

Originally Posted by Brent

Not sure what state you're in, but that isn't the case in Vic. Stamp duty, rego, & ctp are all extras over & above dealer delivery charge.

Correct.

Rodge · 13-09-2012, 07:59 PM

No better way to make dealers sharpen their pencil than asking for the net driveaway price after taking youre trade, (if any). If you get 4-5 change-over quotes and haggle hard with the 2 best of them, they'll be cutting these dealer delivery charges to the bone to earn your business. Who cares what they cover, all that matters is the driveaway / change-over price.

Kevaclone · 13-09-2012, 08:03 PM

Quote:

Originally Posted by eb2monty

How come I don't pay a dealer delivery fee for a TV?

I know some will say it is absorbed in the price but the RRP price on the manufacturer's site is usually more than the store price so that can't be the answer.

It's not as if I'm buying the car from ebay interstate. When buying a new car, you are buying it from an authorised dealer. It is a rort - plain and simple. Paying for fuel? That's like buying a TV and not having the power cord included.

this has been a common sook from buyers since dealers started charging it

and it's nothing more than a way to advertise a vehicle a few thousand less than you end up paying.

Remember the signs

++++++++++++++++++++++++++++++++++++++++++++++++++ ++++
Latest Wizbang just $9999 *
Leather whatsits, turbo charged wipers, 27 cup holders
In stock now

*plus $1999 dealer delivery and on road costs

++++++++++++++++++++++++++++++++++++++++++++++++++ ++++

Great a new car and it's only gonna cost $9999

It's the reason we now have a "Drive Away Price"

xtremerus · 13-09-2012, 08:15 PM

Quote:

Originally Posted by eb2monty

How come I don't pay a dealer delivery fee for a TV?

You will if you want it delivered to your house. Unless you haggle the deal to include it.

Same as P & H for online sales. For small dollar sales, the P & H can be more that the purchase itself.

blownv8au · 13-09-2012, 09:08 PM

Quote:

Originally Posted by xtremerus

You will if you want it delivered to your house. Unless you haggle the deal to include it.

Same as P & H for online sales. For small dollar sales, the P & H can be more that the purchase itself.

That's fair enough BUT, i don't pay anyone to have their products delivered to them, however i will pay to have it delivered to me.
I'd say most businesses pay to transport the products they sell to their place of business, then add this to the cost of the product not a separate charge.

Car dealerships sell cars right? So why should we pay for them to stock the bloody things.

polkgs · 13-09-2012, 09:47 PM

It really is a charge that was invented as a profit making ancillary. The buyer should not have to pay to have a new vehicle presented in a professional manner.

2011G6E · 13-09-2012, 09:57 PM

It's an invention, pure and simple.

It's been questioned since the seventies...I have old Motor and Wheels magazines that have articles every few years on "dealer delivery" and the excuses wheeled out by dealers as to why they do it and what various dealers charged.

The commonest response was that "it was a good time to catch things that hadn't been done at the factory".

I'm sorry? You're openly admitting that the factory can't be trusted to do their job and screw together a vehicle competently and that someone has to "go over their work" at the dealership?

Sorry, doesn't wash. They take the cars off the truck, put them in the holding yard, put them on the lot, and when Mr Consumer comes along, they wash them and put a little rubbish bag on the seat. The "real" time that they "catch things the factory hasn't done" is at the first complimentary service such as with our G6E when they fixed the annoying low frequency grinding noise in one of the drivers seat runner when it moved from one memory position to another (they had to replace a runner)...it had been doing it since day one, so they didn't "catch that factory fault" at the pre-delivery.

At most it should take an hour or so. Looks like it's a fine old tradition that dealers are quite happy to keep rolling along...

Ben73 · 13-09-2012, 10:09 PM

Quote:

Originally Posted by blownv8au

Car dealerships sell cars right? So why should we pay for them to stock the bloody things.

That's it.
It all should be included in the price of the car.

When I buy a car I expect to pay for the car to the dealer, then pay for stamp duty and rego and that's it. If the dealer can't cover their costs of the car in the sale price, then perhaps they should go back to business school and figure out how to cover their costs and still earn profit. I'd guess that's a major part of running a business.

Anyway I thought all dealers talk drive away prices now instead of the price of the car alone.

P6LTD351 · 13-09-2012, 10:14 PM

Quote:

Originally Posted by xtremerus

You will if you want it delivered to your house. Unless you haggle the deal to include it.

Same as P & H for online sales. For small dollar sales, the P & H can be more that the purchase itself.

??????

If I called up Ford and wanted them to transport a car from Victoria to my driveway in Adelaide then ok. No one has that option though.

ratter · 13-09-2012, 10:25 PM

fact is it is included in the cost of the car, it's just they show you the break up of the total costings, if you do not like the deal in front of you, shop some where else and see if you get a better deal.

Itsme · 13-09-2012, 10:33 PM

Quote:

Originally Posted by ratter

fact is it is included in the cost of the car, it's just they show you the break up of the total costings, if you do not like the deal in front of you, shop some where else and see if you get a better deal.

I agree and no matter what you will be charged a delivery fee on a brand new car.....call it a dealers commission from the manufacturer. lol

b0son · 13-09-2012, 10:37 PM

The difference between the wholesale cost and retail price is costs + profit. The RRP is set to allow a reasonable margin on the product to the retailer.

Car dealers not only have the margin on the product, they charge a dealer delivery fee to effectively get a second bite at the cherry, forcing you to pay AGAIN for the things that should normally be covered in the markup from wholesale to RRP.

Its a rort.