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Dealer preparation fee

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Math for Non-Math Majors

Definition

A dealer preparation fee is an additional charge by a car dealership to cover the costs of making a new vehicle ready for sale. This typically includes cleaning, inspecting, and detailing the car before delivery to the buyer.

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5 Must Know Facts For Your Next Test

  1. Dealer preparation fees are often negotiable, and buyers can ask to have them reduced or removed.
  2. These fees can range from $100 to $500 or more depending on the dealership.
  3. The fee covers tasks such as washing, waxing, checking fluid levels, and ensuring no damage occurred during transit.
  4. Some dealerships may include this fee in the total price of the car without explicitly itemizing it.
  5. Buyers should always ask for a breakdown of all fees when negotiating the final price of a vehicle.

Review Questions

  • What tasks are typically covered by a dealer preparation fee?
  • Is it possible to negotiate or remove the dealer preparation fee?
  • How much can a dealer preparation fee typically cost?

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