HELP! Should I be paying a RAG fee?

[gmag24]

All,

I understand what the fee is, I'm just wondering if I should be paying for it as part of my new LR4 purchase. I was under the impression that this fee is baked into the dealer's invoice price, but not entirely sure. Now I'm all of a sudden getting quoted $400 for the RAG fee. I call BS, but would love some feedback. Everything else seems above board, but in addition to the Invoice + $1,500, they're adding in this fee and I'm a bit skeptical. Thanks!

 

[Izzyandsue]

Not sure what a RAG fee is, but dealers can add anything to their invoices like blinker fluid refills, protection package (piece of tape on the doors), and other useless crap just for pure profit. Ask them to explain it, ifntheynwant some more money from you, they will invent some other bull and spread it across.

 

[gmag24]

The way it's labeled, I can totally see them snickering behind the backs of the unsuspecting. Anyway, I get its a legit fee for the dealer, but certainly not one the consumer should be paying for.

 

[GermanRoots]

I hate those mandatory dealer fees. You have two options, pay it or walk away from the deal. If I were you, I'd do the latter. See if you walking away from the deal motivates them to take another $400 off the price so they can charge you their fee.

 

[gmag24]

GermanRoots,

Man, we're on the exact same page! It's definitely not a mandatory fee. I did a lot of research. If its not on the invoice as a fee, I shouldn't be responsible for it. In my case, it turns out the RAG fee is actually their regional advertising fee, which is baked into the invoice price. If they differ in opinion, then they're basically charging me for an additional advertising fee.

First and foremost, I'm definitely not going to pay for THEIR ordinary cost of business. If they can't revert the fee, then as you've said, they'll have to take the hit somewhere else and simply bring down the price. Not my problem.

So here's my plan. I have their final quote. I'm going to shave that $400 RAG fee and get a cashiers check for the final quote, less the RAG fee. Then I'll give them my explanation on why I refuse to pay. If they don't concede, I'm out the door with check in hand. We all know what happens next....

 

[GoLoaf]

Does it really matter what "fees" they charge? Total price of truck = total price of truck. Is it too high or too low? Don't pay more than you're comfortable with. If they want to call a piece of the price a RAG fee or a TOWEL fee, let them.

 

[gmag24]

It doesn't matter but it is a matter of principle. I'm comfortable paying $400. Heck, I'd pay even more considering my deal and my desire for the car. But to try and stick it to me with a blatant fee is poor on their part

 

[Izzyandsue]

Good luck, sounds reasonable to me but I am not the dealer. Whe we get our company cars from VW( long story), we agree on final price that we pay out the door. Then they do the goofy sheet with segregated fees to make their accountants happy, I get that. But the number is the number no matter how they spread it.
I realize they need to make a profit, so don't mind that, but if they pull some add on surpirse fees at the end, I would worry about their openness in negotiation. I deal with the VW dealer because they are upfront, no schemes to add fees, don't even try to sell extra warranty or tire inspection fee or whatever ridiculous things dealers come up with these days.

If you get it, post some pics!

 

[Disco Mike]

If you haven't taken delivery, go find another dealer that won't charge this. I would also call the Rover Customer number and let them know what is going on. If you have taken delivery, you are most likely out of luck since you did sign a contract instead of dealing with it ahead of time.

 

[gmag24]

I haven't signed anything yet. I committed to buying the car verbally, so they know I have some level of Commitment. The fee is bogus. If its not on their invoice their passing on their own cost onto me and I won't pay. As I said, I'll walk in with check in hand, less that bs fee, and see who balks. There's plenty of other dealers and inventory to choose from.