Prep Fee

[smoothie]

I am posting this to see if anyone else has encountered this. I have enquired into purchasing a Landmark and the dealer stated they charge a prep fee of $1495. Is this normal? I clarified that they are asking me to pay them to get trailer ready to sell and he responded yes?

 

[Oregon_Camper]

NEVER!!!

That is 100% margin for them. I'd run away from any dealer asking me to pay them, in order to sell me an RV.

Remember to bring a PDI as well. This is your chance to inspect the RV, as the dealer will not do a good job. You can get mine by clicking on the link my signature below, or you can search the web for one.

Finally....do NOT, repeat do NOT give them any $$$$ until you have completed the PDI and they have resolved all the problems found.

 

[danemayer]

Not normal.

If you want to continue negotiating, set that aside, get the price and terms you want. Then refuse the extra fee. Worst that can happen is that you waste some time with them and then go elsewhere and they lose a sale.

 

[rhodies1]

I could be wrong with this comment but I believe Heartland pays the dealer a prep fee to ensure the unit is ready for sale.I do not believe many dealers bother the inspection just pocket the funds .

 

[Gary521]

Its like buying a car. In the sales person office is a sign that says " The is a non-negotiable prep fee of $XXXX.00" Well, just about everything is negotiable. Maybe the prep fee is not but the price of the vehicle sure is. I think its the bottom line that matters. I think I have seen that sign in RV sales offices too. Is it pure profit for the dealer-yes. Can you whine about it -yes. Can you do anything about it -probably not.

 

[Oregon_Camper]

Its like buying a car. In the sales person office is a sign that says " The is a non-negotiable prep fee of $XXXX.00" Well, just about everything is negotiable. Maybe the prep fee is not but the price of the vehicle sure is. I think its the bottom line that matters. I think I have seen that sign in RV sales offices too. Is it pure profit for the dealer-yes. Can you whine about it -yes. Can you do anything about it -probably not.

I'd argue that you could walk from that dealer and then work with another dealer. Even if there isn't a dealer close, the $1,500 could allow a buyer to purchase from a location ~1,500 miles away and have it shipped to them (ave is ~$1 per mile). I'd do that vs having someone steal $1500 from me.

 

[danemayer]

Back in the 70s during one of our gas shortages, I accompanied one of my friends to the Honda dealership so he could buy a new Civic. Honda had recently started to get a good rep and the Civic had great gas mileage compared to everything else.

I noticed on the window sticker a dealer item labeled "ADP $1,500.00". I asked what ADP stood for and the salesman was kind enough to explain that it was "Additional Dealer Profit." Civics were in high demand at the time and they just wanted the list price, plus their expensive add-ons, plus ADP.

 

[smoothie]

NEVER!!!

That is 100% margin for them. I'd run away from any dealer asking me to pay them, in order to sell me an RV.

Remember to bring a PDI as well. This is your chance to inspect the RV, as the dealer will not do a good job. You can get mine by clicking on the link my signature below, or you can search the web for one.

Finally....do NOT, repeat do NOT give them any $$$$ until you have completed the PDI and they have resolved all the problems found.

I appreciate the response. I didn't think this was normal considering that is what the PDI is for. I am going to decline the prep fee and see where it goes.

 

[smoothie]

I could be wrong with this comment but I believe Heartland pays the dealer a prep fee to ensure the unit is ready for sale.I do not believe many dealers bother the inspection just pocket the funds .

It would be nice to get the specifics on if that is true or not. That would be good information to take in to the bargaining table.

 

[TravelTiger]

Maybe ask, if you don't pay the prep fee, and then you find an issue after delivery, will they make the repairs that you are ENTITLED TO FROM HEARTLAND with the factory 1 year warranty? Or, if you do pay the fee, the unit will have zero issues, and if you find ANY issue during walk through (or within 30 days of use), you get your money back?


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[jim rotman]

I just purchased a 2018 Sundance 189MB and the dealer I got the best bottom line price had a "Dealer Service Fee of $995". Some thing new to me but another dealer that had a higher price made no mention of fees. Probably buried in the price. Point is to just shop dealers and get the best bottom price.

 

[jerryjay11]

I am posting this to see if anyone else has encountered this. I have enquired into purchasing a Landmark and the dealer stated they charge a prep fee of $1495. Is this normal? I clarified that they are asking me to pay them to get trailer ready to sell and he responded yes?

That sounds more like a "prep fee + Freight fee" combined because I paid $1785 total for both with our camper. Maybe, as someone suggested, work that off on the purchase price end.

 

[smoothie]

I really appreciate all the feedback. Final result is the fee was negotiated down 50%. This was due to the fact that there were issues discovered during the PDI that should have been taken care of during the dealer prep that we were paying for. We were pleased with the outcome.

 

[BigJim45]

I really appreciate all the feedback. Final result is the fee was negotiated down 50%. This was due to the fact that there were issues discovered during the PDI that should have been taken care of during the dealer prep that we were paying for. We were pleased with the outcome.

You SHOULD NOT have to pay for any repairs found during your PDI walk. This dealer is RIPPING you OFF really bad. I WOULD HAVE WALKED AWAY FROM THIS DEALER?

 

[smoothie]

I think there was a misunderstanding. The prep fee was something the dealer "normally" charges. It is not attached to the PDI. The PDI and any repairs found from it are covered free of charge. We reduced the amount of the prep fee they charged because of items we found during the PDI.

 

[Oregon_Camper]

I think there was a misunderstanding. The prep fee was something the dealer "normally" charges. It is not attached to the PDI. The PDI and any repairs found from it are covered free of charge. We reduced the amount of the prep fee they charged because of items we found during the PDI.

I think the general thought here is what your dealer is calling a "prep fee" is really just a PDI. It behooves them to do this and avoid customer finding all the issues. Any chance you have an itemized list of what is done during their "prep?"

Having said all that....CONGRATS on the new trailer!! You will LOVE it.

 

[smoothie]

I think the general thought here is what your dealer is calling a "prep fee" is really just a PDI. It behooves them to do this and avoid customer finding all the issues. Any chance you have an itemized list of what is done during their "prep?"

Having said all that....CONGRATS on the new trailer!! You will LOVE it.

I see what you are saying. That is probably true just worded as a prep fee. Thank you for the well wishes. We are looking forward to many great experiences.