* * * FREQUENTLY ASKED QUESTIONS * * *
(as well as a few of my unsolicited opinions)
Welcome to our FAQ page. Here we try to address some common questions and misconceptions about the automotive industry in general as well as some that apply to our dealership specifically. You should find the following topics helpful and at times humorous regardless of whether or not you are currently in the market for a car.
The Documentary Service Charge is. . . . Ohio law permits a documentary service charge to compensate retail sellers for the costs associated with regulatory compliance. Ohio motor vehicle dealers are required by law to provide specific notices in a variety of documents, such as Buyer's Guides, Buyer's Orders, Spot Delivery agreements, EPA disclosures, Privacy Notices, Limited Warranty documents, IRS documents, Lemon Law disclosures, as well as prepare title transfer documentation. In addition, Ohio motor vehicle dealers must comply with regulations directed at "financial institutions". Dealers are required to check consumers' names against the OFAC SDN list to ensure that we are not prohibited from transacting business with a customer (including entities and countries). Dealers must satisfy the requirements of the Fair and Accurate Credit Transactions Act and the Fair Credit Reporting Act. This includes creating policies to verify customers' identity and otherwise protect against identity theft. Also, dealers must create policies to ensure information obtained by consumers is protected. Dealers are required to develop safeguarding measures, including document storage and disposal procedures and policies for protecting electronic information. The cost of compliance, including providing copies of all documents to our customers, and retaining documents as required by law has become greater as more attention has been given to concerns regarding terrorism, identity theft, data breaches and consumer protection. The documentary service charge helps dealers offset these growing costs.
Well, I've never been charged this before at any other dealership. . . . For decades most dealers across Ohio have consistently charged a documentary fee. Currently, Ohio law allows a dealer to charge up to $250. Many dealers gloss over this when they "explain" the purchase order that you are about to sign and verbally lump the fee in with title/registration fees. However, if you've purchased a car in the last 10-15 years from a reputable new or used car dealer, you should find this fee itemized on you purchase order. You probably didn't know you paid it, but it's there.
Well, I won't pay it. . . . The Documentary Service fee is not a negotiable item. If a dealer or salesperson were to modify or waive this fee for one customer, that dealership/company would be in violation of the compliance laws that regulate our industry. No single sale is worth opening that can of worms.
Should I buy a service contract when I purchase a used car? The answer to this question is different for everyone, and you need to look at more than the small addition to your monthly payment. There's an old saying that goes "If it's made by man, it's gonna break." As a general rule, do you have the financial reserves set aside to pay for a $3000 transmission repair? A $2500 engine replacement? A $1200 air conditioner repair? If you've answered "no" to any of these questions, then you might give it some serious thought. If you will find it difficult to pay an addition $15-25 a month for the coverage, what will you do if something major goes wrong?
I'm looking for a low mileage car. . . . Well, by now we've all heard that the industry average is 15000 miles a year. However, it's easy to lose track of the what the average miles for a particular year of car is while keeping in mind what the current model year is (and the older you get, the tougher it becomes :). Since the 2010's have been on the road for a while now, we thought we'd put together the following list (model year followed by corresponding average mileage): 2009--15000 mi., 2008--30000 mi., 2007--45000 mi., 2006--60000 mi., 2005--75000 mi., 2004--90000 mi., 2003--105000 mi., 2002--130000 mi., etc. So, if you're looking at a 2003 model car with 97000 miles, that would qualify as a low mileage car. Really. Whether or not you personally drive 5000 miles a year or 25000 does not change the fact that the industry average is 15000 a year. That brings us to the next topic. . .
The Great Pumpkin, Unicorns and the $5000 Honda with 50000 miles. I wish I had just one dollar for every time someone asked me to locate "an inexpensive car for my son/daughter. . .maybe a Honda or Toyota . . . for around $5000. I'd like it to have around 50-60000 miles. You can find that for me, right?" Uh. . .well. . .no. No chance. And here's why. As was so conveniently explained in the prior paragraph, the industry average is 15000 miles a year. So, to find a 50-60000 mile car, you'll probably need to buy a 2006 or newer model. Conversely, most vehicles priced for $5000 or those vehicles with a book value of $5000 will typically be no newer than a 2002 model (probably 1999 or older in a Honda or Toyota), and those will have average miles for the year of the vehicle. The odds of finding a car old enough to sell for $5000 that has such extremely low mileage are extremely low. And to make that vehicle a Honda or Toyota. . . well, you might want to look up the number for the jolly ole' fella living at the North Pole.