Admin Fees in Sales Agreement

[Diversion]

Does this fee make sense?
There will be an additional $250.00 Administrative fee. This charge covers the implementation of
documents for title work or Coast Guard preparation. For Documentation work. XXXXXXXXXXX Brokerage
will prepare documents but does not apply any vessels with the USCG.

Thanks

 

[mrsrobinson]

Like the fee car dealers like to throw in. I never pay it and walk if they insist. I am very surprised to see a boat broker trying to hit you for $250 in fees in this market.

 

[Fishnut]

It's called the shake down. :smt021

 

[fwebster]

It is added dealer mark-up but by changing the description to a service fee, they are able to charge everyone the same fee and make it stick legally. To delete it on some deals opens the dealer to a discrimination charge.

I have yet to pay one, but it is included in very contract. I tell the dealer if he is going to charge me the "service" fee, then document and describe for me what value I receive from those services. Nobody ever tries, and they adjust the numbers by the amount of the fee.

Truthfully, their F&I guy's compensation is covered by the point spread he gets on financing, the documents fee you pay, the commission insurance agents pay him and the mark-up on warranties he sells. I don't care who pays him........and I don't mind paying for services I buy that are necessary, but I will not pay added mark-up cleverly disguised as a service fee. I don't need financing, I make my own insurance deals, I handle my own USCG documentation, so there is very little the dealer's F&I guy has to offer me so I take a pretty hard line on the doc charge.

 

[CSR_Admin]

Its a legit fee. We don't include it in the Agreement but we certainly offer the service if a customer wants it. If you want to go through the hassle yourself just cross it out on the agreement and write in that you will handle your own documentation. I'll tell you this - $250 is a bargain for somebody to handle that. Here is a link to the fees: http://www.uscg.mil/hq/g-m/vdoc/fees2.htm

 

[Four Suns]

Since lenders in MD don't require a boat to be documented, you probably get a lot of people scratching that out.

 

[fwebster]

The original post is not very clear, but from his last sentence I took the service charge to exclude USCG Documentation :"Brokerage will prepare documents but will not apply any vessels with USCG."

I've done it and agree that $250 is cheap for a USCG Doc application, but it appears that this fee is a typical administrative or documents fee at the dealership and not one to cover a CG Doc fee.