Dealer fee is just tacked-on profit

Dear Terry,
I've already bought my new truck, so I know that there's nothing I can do now. But I have to ask about a $250 "dealer fee'' that I was charged at the time of purchase. The salesman said it was a standard fee that covered the dealership's costs for paperwork and other items. Is that a legitimate fee, or was I just rooked out of $250?
-- Hamal

Dear Hamal,
The dealer simply added another $250 in profit to that sale. So-called dealer fees are simply a way to disguise added profit that should be negotiable as part of the sales process. While it's becoming commonplace for dealers in a city or region to try to charge these fees, you're definitely within your rights to demand that the fee be eliminated or you're walking away from the deal.

This week

• New-car sound systems lag behind in technology • Is a $250 "dealer fee" a legitimate charge on a new car? • How much tax credit do I get on my Toyota hybrid? • What should a single woman ask before she buys a car?

If you have a question for Terry, e-mail him at Driving for Dollars.