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Dealer Adds $10,000 in Fees to a Lexus IS: How to Spot and Fight Back

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How a $7,000 'Discount' Becomes a $10,000 Markup

A jaw-dropping phone call with a major dealership reveals how advertised prices can hide thousands in mandatory add-ons and fees. Here's a breakdown of the red flags so you can protect yourself from the same tactics.

Video by Zach and Ray Shefska, a consumer advocacy channel focused on car buying and ownership.

4 key moments5 takeaways

Key Moments

Carvia Insight

The Bait-and-Switch Breakdown

Carvia InsightThe dealer advertises a massive $7,055 discount, only to add back nearly $7,000 in fees like 'Recon,' 'LoJack,' and 'PermaPlate.' This tactic makes the initial price look amazing online, but the real price is thousands higher. Always ask for an itemized out-the-door price sheet before getting emotionally invested.

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The 'Finance With Us' Catch

Carvia InsightThe salesperson offers to remove the $2,999 reconditioning fee *only* if the buyer finances with the dealership. This is a classic red flag for tied selling, where a dealer might give you a bad interest rate to make back the money they 'saved' you. Arrange your own financing beforehand to remove their leverage.

Non-Negotiable Add-Ons

Carvia InsightWhen questioned, the salesperson claims the LoJack and PermaPlate packages are already on the car and 'can't be taken out.' While the products might be installed, their cost is almost always negotiable. Stand firm and state that you are not willing to pay for accessories you did not ask for.

Focusing on the Final Number

Carvia InsightUltimately, the individual line items don't matter as much as the final, all-in price. Know what a fair out-the-door price is for the vehicle you want. If the dealer can't meet that number, regardless of how they structure the fees, it's time to walk away.

Carvia Takeaways

Carvia Insight

**Always negotiate the 'Out-the-Door' (OTD) price.** Ignore advertised prices, monthly payments, and confusing discounts. The only number that matters is the total cost to drive the car off the lot.

**Question every single line item.** Fees for 'reconditioning,' 'dealer prep,' or 'protection packages' are often inflated profit centers, not mandatory costs.

**Get pre-approved for a loan before you shop.** This removes the dealer's ability to pressure you into their financing and gives you a benchmark interest rate to beat.

**Treat dealer add-ons as negotiable.** If a dealer says a $1,200 security system is 'already installed,' you can respond that you're only willing to pay a fraction of that, or nothing at all.

**Be prepared to walk away.** This dealer's tactics are a clear sign they aren't negotiating in good faith. There are always other cars and other dealers who will be more transparent.

Model-Year Watchouts

Carvia Insight

Lexus IS (3rd Gen, Post-Facelift) (2021-2024)

Watchouts

**Inflated pricing on F Sport models:** These are highly desirable, and dealers often use their popularity to justify mandatory add-ons and market adjustments. Know the fair market value before you start negotiating.
**High-cost performance tires:** The F Sport packages include performance tires that are expensive to replace and wear out faster than all-seasons. Check the tread depth closely on used examples.
**Previous life as a loaner/demo:** A nearly-new car might have been a dealership loaner. This means more wear-and-tear and mileage than a typical privately-owned vehicle.

History to Verify

**In-service date:** The factory warranty starts when the car was first put into service, not when you buy it. A Carvia VIN Report can help you confirm how much warranty is left.
**Accident and damage history:** Even minor damage can impact a luxury car's value. Verify a clean history before making an offer.
**Service records:** Lexus vehicles are reliable, but only if maintained properly. Look for consistent oil changes and adherence to the manufacturer's service schedule.

Pre-Purchase Checks

**Infotainment touchpad:** Test the system thoroughly. The touchpad controller can be distracting for some drivers, so make sure you're comfortable with it.
**Brakes and suspension on F Sport models:** During your test drive, listen for any squeaks or rattles and feel for a firm, responsive ride. Repairs to the adaptive suspension can be costly.

How to Verify in a Carvia Report

Title brands and ownership history
Odometer readings over time
Accident chronology and damage reports
Service intervals and maintenance records

Check this VIN with a Carvia report

More Guides

Not sure what to look for? Our report flags title issues, mileage anomalies, prior damage, and more—before you buy.

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Topics & Tags

Car BuyingDealership NegotiationHidden FeesCar Sales TacticsOut the Door PriceLexusLexus ISLithia Motors

Carvia.ai is not affiliated with or endorsed by the video creator. The analysis and insights are generated by our editorial engine to help car buyers make informed decisions.

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