Reconditioning fees: What they are and how they work
Quick insights
- Reconditioning fees cover the cost of fixing a vehicle to be showroom ready.
- While not all fees and prices are negotiable, reconditioning fees can be.
- Reconditioning fees are one type of fee that can get added to the cost of a used car, in addition to other fees.
The sticker price of a used car can be significantly lower than the out-the-door price, or the total cost of the car. This is due to the fact that fees, such as reconditioning fees, may get added to the total price by the dealer. When purchasing a car, it can be helpful to be aware of these fees and try to negotiate a lower price. Let’s demystify reconditioning fees and explain what they are in more detail below.
What is a reconditioning fee on a used car?
A reconditioning fee is a charge added by the dealer which is meant to help cover the expense of making a used vehicle ready to sell. Dealers may need to pay to have a vehicle inspected or detailed before putting it back up for sale and a reconditioning fee is used to help pay for these services. These types of fees may be added by a dealer as a way to advertise a lower asking price (as the asking price typically does not include added fees). That’s why you might not be aware of these additional fees until later in the purchasing process.
Are reconditioning fees legal?
Yes, reconditioning fees are legal. Make sure to read the fine print of your agreement before making any purchase so that you are well aware of the costs, terms and conditions.
Are reconditioning fees negotiable?
While some fees are non-negotiable (such as taxes, registration fees and title fees), reconditioning fees can be.
Reconditioning fees can be expensive, but they are negotiable. You can ask the dealer to provide a list of all the fees to expect and see what preparations and repairs were done on the car. You might notice that the dealer could be significantly overcharging for small repairs or adjustments. For example, if a small dent repair is costing you thousands, you may be able to negotiate this price down.
If there is little wiggle room on the cost of reconditioning fees, consider alternative negotiation strategies, such as trying to lower the out-the-door price (the total amount of the car) or adding free services or features.
Other fees to be aware of
In addition to reconditioning fees, you may want to look out for other fees that could be negotiable, such as:
- Documentation fee: Dealers may add this to cover the cost of preparing the paperwork for registration and more.
- Advertising fee: This includes the costs of marketing the car, such as advertisements and videos.
- Extended warranty: Used cars may come with an extended warranty, so it can be helpful to review and negotiate what is included.
At the end of the day, it can be important to review the fine print of all the paperwork that goes into buying your used car so that you can make well-informed decisions and prevent any surprise costs.
In conclusion
Buying a used car can be expensive, so if you can find room to cut costs, you may be able to do so by negotiating down the reconditioning fees. Carefully review all the added costs that contribute to the out-the-door price and review the terms and agreements of your paperwork, such as extended warranties. Understanding these costs can help you make informed decisions when buying a used car.
