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I am buying a new vehicle using a local service.  I have been told that in addition to the dealer's cost of the vehicle I will need to pay a licensing fee.  My friends who recently bought a new vehicle directly from a dealer in Guadalajara say that the cost of licensing was included in the dealer's posted price.  Does anybody have experience with buying a new vehicle either through a buying service or directly from a dealer as to whether the licensing fee is included in the posted price or extra on top of that price?

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1 minute ago, AngusMactavish said:

I bought direct and gave the salesman cash to get my tag. My dealer had no posted price, I paid the MSRP listed on the manufactures website.

Are you saying that you paid the license fee on top of the MSRP price?  My understanding is that the price of new vehicles in Mexico is fixed, no negotiating.  The price at the dealer is the same as the price online.  

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1 hour ago, daisy2013 said:

Prices are NOT fixed, shop around, you can get a great discount and get lots of extras too

I don´t agree with you. We have bought 3 new, not used, vehicles and only got a discount with a 2013 Volkswagen Clasico in 2012 because our good friend was good friends with the sales manager - $14,000 pesos off sticker and free rubber floor mats . The 2018 Hyundai Creta we bought in Aug. we only got a $6,000 peso "bono" which we had to spend at the agency and free rubber floor mats front and back. We paid the registration fees and the agency got the plates for us. All three times we searched for weeks for many models and many agencies. The sticker price is the price you pay but you stated  great discounts - No way!  All  our friends and my wife´s family the exact same experiences.

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38 minutes ago, daisy2013 said:

Prices are NOT fixed, shop around, you can get a great discount and get lots of extras too

Are you stating this based on your personal experience negotiating price of vehicle with a dealership?  I was told by S&S that dealerships are fined by the manufacturers if they sell below MSRP.  I imagine accessories, like floor mats, are at the discretion of the dealership.  

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2 hours ago, AngusMactavish said:

Yes fixed, but does not include the registration. You are using a service and they (S&S) should tell you the facts.

 

2 hours ago, AngusMactavish said:

Yes fixed, but does not include the registration. You are using a service and they (S&S) should tell you the facts.

As I stated in my original post:  "I am buying a new vehicle using a local service.  I have been told that in addition to the dealer's cost of the vehicle I will need to pay a licensing fee.  My friends who recently bought a new vehicle directly from a dealer in Guadalajara say that the cost of licensing was included in the dealer's posted price."  Therefore I am double-checking the discrepancy between the local service and what my friends claim their experience was concerning the licensing fee when buying directly from the dealer without using a buying service.  Based on most answers so far, my friends appear to be mistaken about licensing fee being included in dealer's price.  I was also told by the local service that vehicle prices are set by manufacturers and not negotiable but Daisy2013 seems to have had a very different experience.  Again, I would like to know where the truth lies as to whether prices are set or are negotiable.  Perhaps Daisy2013 could detail her experience:  when was it?  what dealer?  what kind of discount did she get?

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In my working life I had a Fortune 300 client that owns hundreds of auto dealership in several countries including over 150 in the U.S. alone. Their CFO had been the CFO for Ford in Latin America and later in Europe. He told me that the "franchise agreement" that dealerships have with manufacturers are different in the U.S. and Mexico. Franchise agreements give dealerships the right to sell a given brand of vehicles. In Mexico all dealers are "required" to sell the same vehicle a the same fixed price. Dealerships might deviate from those requirements but doing so puts them at risk. In fact, the CFO told me specific stories about dealers in Mexico losing their franchise. Just imagine a Toyota dealership that couldn't sell Toyotas. Again I have no doubt that some dealerships might give discounts or play other games. But the price is the price.

Spending tens of thousands of U.S. dollars and getting hung up on about $30 USD?

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I bought a new Honda Pilot last year from a dealer on Gonzalez Gallo. I shopped several dealers checking out different models. The prices listed on auto websites were the same as posted on the car in the dealerships. Car prices are fixed in Mexico.

Can't speak to options as I didn't buy any. I received a list of add-on items with prices but got no indication that the extras were negotiable.

Honda would have acquired tags for me for $3,100 pesos. Going to Chapala to get the tags cost $2,400. In either case the cost of tags is a line item on the invoice just under the fixed car price.

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Go to Naosa in GDL.  I received thousands of dollars off msrp and extras.   I also worked at several car dealerships, gmc and others give lots of incentive and money back to dealerships.  Everything is negotiable.  Honda does not budge much on msrp but others do.  Some even give free insurance for first year.   Many other dealerships were willing to discount cars.  Shop around prices are not fixed.....

5 hours ago, bdlngton said:

Are you stating this based on your personal experience negotiating price of vehicle with a dealership?  I was told by S&S that dealerships are fined by the manufacturers if they sell below MSRP.  I imagine accessories, like floor mats, are at the discretion of

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We recently bought a new vehicle from the dealer in Guadalajara and we did extensive online research before selecting it (including looking at out-of-state dealerships). All dealers advertised the same price, offered the same price--our experience was not like the US where you haggle with the sales staff. We picked ours based on service recommendations (unlike in the US, each dealer confirmed we must use the dealer exclusively for the posted maintenance schedule to maintain the warranty) and theoretical ease to do so (ours is open Sundays.) Plates were in the total price and the vehicle was picked up registered and plates on, with our options installed; salesperson and our insurance agent worked together to get required insurance documentation prior to us picking up the vehicle.

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2 hours ago, jrod said:

We recently bought a new vehicle from the dealer in Guadalajara and we did extensive online research before selecting it (including looking at out-of-state dealerships). All dealers advertised the same price, offered the same price--our experience was not like the US where you haggle with the sales staff. We picked ours based on service recommendations (unlike in the US, each dealer confirmed we must use the dealer exclusively for the posted maintenance schedule to maintain the warranty) and theoretical ease to do so (ours is open Sundays.) Plates were in the total price and the vehicle was picked up registered and plates on, with our options installed; salesperson and our insurance agent worked together to get required insurance documentation prior to us picking up the vehicle.

Yes that clearly is the way it is in Mexico.

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On ‎29‎/‎03‎/‎2018 at 8:25 PM, daisy2013 said:

Go to Naosa in GDL.  I received thousands of dollars off msrp and extras.   I also worked at several car dealerships, gmc and others give lots of incentive and money back to dealerships.  Everything is negotiable.  Honda does not budge much on msrp but others do.  Some even give free insurance for first year.   Many other dealerships were willing to discount cars.  Shop around prices are not fixed.....

https://www.usatoday.com/story/money/cars/2017/07/22/report-gm-may-kill-chevy-volt-sonic-and-four-other-cars/501798001/

"The news comes as sales of cars continue to plummet in the U.S. and as consumers increasingly turn to SUVs and pickups.

The company is considering plans to eliminate the Chevrolet Volt hybrid, the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala and Chevrolet Sonic, according to Reuters.

"When an employer like GM, Ford or any other employer produces so many vehicles in Mexico and around the world and is bringing them back to the United States for sale, and comes to us with a plant closing, there is going to be a problem with us, without a doubt," Williams said.

Products that they currently have" at underused car plants such as Hamtramck in Michigan and Lordstown in Ohio, Williams said. 

GM weighs cutting six cars from its lineup
"We are tracking it (and) we are addressing it," Williams added.

Earlier this year, GM eliminated a shift at its Lordstown plant where it makes the Chevrolet Cruze.

Over the first six months of this year, industry sales have dropped 6.6% for compact cars, 18.5% for full-size cars and 18.4% for subcompact cars. And those declines are on top of car sales declines that began several years ago even as overall industry sales increased for seven years in a row."

Daisy I went to the Chevrolet dealer´s website in Guadalajara Naosa where you purchsed a new Chevrolet and they listed these above models from the article now not selling as fast as predicted with promotional discounts off the list price. It had list price and below that promotional price.  I then went to Mexico´s  Chevrolet official website and the exact same models plus other compact cars had the exact same promotional discount prices as the Guadalajara Chevrolet dealership. It appears that all Chevrolet dealerships in Mexico are selling those models discounted at the factory level not discounted by individual dealerships. So what everyone else has been saying about Mexico´s car dealerships appears to be true.

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On ‎3‎/‎29‎/‎2018 at 8:25 PM, daisy2013 said:

Go to Naosa in GDL.  I received thousands of dollars off msrp and extras.   I also worked at several car dealerships, gmc and others give lots of incentive and money back to dealerships.  Everything is negotiable.  Honda does not budge much on msrp but others do.  Some even give free insurance for first year.   Many other dealerships were willing to discount cars.  Shop around prices are not fixed.....

You worked at dealerships in Mexico?  As several have stated, prices on vehicles in Mexico are set by manufacturers and are not negotiable.  If a dealership negotiates price from stated MSRP the dealership is fined.  If it happens several times they will lose their franchise. This is also what I was told by S&S.   It appears, for whatever reason, you are an exception to that rule.  Anyway, Noasa does not sell the brands I am interested in.  

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On 3/29/2018 at 3:21 PM, daisy2013 said:

Prices are NOT fixed, shop around, you can get a great discount and get lots of extras too

Your information is not correct unless you are talking about used vehicles, then you can deal.

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All I know is what I have experienced personally recently and what S&S has told me.  Prices for vehicles are set by manufacturer and not negotiable at dealership.  Prices are clearly stated on the manufacturer's website and at the dealership.  Any reduction in price (a bono or bonificacion) is set by manufacturer, usually because of excess inventory of a certain model or color.   Any dealership that sells for less will be fined at the first infraction.  The fine is doubled at the second infraction.  If the dealership does it again it will lose its franchise.  The only negotiable thing is accessories the dealer may throw in.   Registration and licensing are in addition to posted price.  Apparently the initial registration costs more than just licensing.  At least that is my assumption based on the estimate S&S has given me for registration and licensing...and it is much more than the $30 some people keep throwing out.  And insurance has to be in place before it leaves the lot.  

That is what I know based on the fact that I just signed papers with S&S yesterday to purchase a new vehicle and what Spencer and Karen have told me throughout this process.  If someone has reason to believe I am being lead astray by S&S, please message me because I have no desire to pay more than necessary.

Thank you everybody for your input.

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19 hours ago, hensley said:

Your information is not correct unless you are talking about used vehicles, then you can deal.

Daisy has not responded to the question I asked if she hand died at dealerships in Mexico.  Experience at dealerships in the US or Canada is irrelevant in Mexico.  As far as the discount she says she was able to negotiate at NAOSA dealership, I'd say either she is mistaken or that dealership has seriously jeopardized their franchise.  It's possible they threw in accessories at their expense to make the sale.  I'm hoping for floor mats.

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On ‎3‎/‎29‎/‎2018 at 4:50 PM, REC said:

In my working life I had a Fortune 300 client that owns hundreds of auto dealership in several countries including over 150 in the U.S. alone. Their CFO had been the CFO for Ford in Latin America and later in Europe. He told me that the "franchise agreement" that dealerships have with manufacturers are different in the U.S. and Mexico. Franchise agreements give dealerships the right to sell a given brand of vehicles. In Mexico all dealers are "required" to sell the same vehicle a the same fixed price. Dealerships might deviate from those requirements but doing so puts them at risk. In fact, the CFO told me specific stories about dealers in Mexico losing their franchise. Just imagine a Toyota dealership that couldn't sell Toyotas. Again I have no doubt that some dealerships might give discounts or play other games. But the price is the price.

Spending tens of thousands of U.S. dollars and getting hung up on about $30 USD?

What $30 US???

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