The quick answer is “Yes.” Like most backend additional products such as warranties, insurance products, interior, and exterior coatings… dealer prep fees are negotiable.
A dealer may attempt to persuade you that they are not because they add to their bottom line. The fact is, they are not.
Make sure you look at all the charges before signing the contract. When you come to the vehicle preparation fee, ask them to remove it. Tell them that the manufacturer has already compensated them for prepping the vehicle for sale.
I guarantee they’ll look at you like your crazy… Yea, crazy like a fox! If they’re standing their ground, tell them you’re willing to pay a certain amount and not a penny more.
I will tell you there are some dealers out there that will not budge from their “excessive fee” and some have a policy in place to not remove it from the contract. If this is the case and let’s say the dealer fee is $500. Have them leave the fee on the contract and drop the price of the vehicle by $500. This way you win and it’s still written on the contract.
When it comes to negotiating a dealer prep fee, it really comes down to how “in demand” the vehicle is you’re looking to buy and how much you really want to buy the car.