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These fees are not a money-making line item for the dealership and are intended to be paid for by car buyers. Remember it’s your money. These fees are not a money-making line item for the dealership and are intended to be paid for by car buyers. The second rule of thumb is to ask questions if you don’t understand something. Cash back savings are just the beginning. Like many things, it’s the cost of doing business and shouldn’t be passed on to shoppers like yourself. Those costs get passed onto a customer when they come in to purchase a car and often times they can add a good chunk of change to the cost of a car. 1 decade ago. Once a nominal fee of around $500, such charges have ballooned in recent years. Once you and the dealer have settled on the right price, ask them to present you with the invoice. How to Refinance Your Car Loan Like the doc fee, your state will most likely require that dealers clearly disclose the destination charge, but it might not be included in the manufacturer’s suggested retail price (MSRP). Doc fees range from $0 to nearly $1,000 depending on which dealer and state you purchase from. New or used, the price on the window of that shiny vehicle is seldom what you pay out the door. What are Dealer Fees & Which Ones are Negotiable? The experts at Auto Destination can tell you. A few states like California and Minnesota have caps on documentation fees, while others don’t. It's basically the cost to transfer the vehicle … Another unavoidable fee is the destination charge, or what the automaker charges for delivering the vehicle from the factory to the dealership; it’s included in the official window sticker. Edmunds' Pricing vs. Other Guides (such as KBB or NADA) What fees should I pay for when buying a car? The amount often isn’t factored into the sale price of the vehicle, so when you’re getting a quote make sure to ask if the destination fee is included and how much it will add. We offer a personalized shopping experience that begins the moment you stumble upon our website or car lots. For more information, check out our guide to destination fees. For more about why dealership used cars cost more, check out my other article, here. 4 years ago. So be aware whether you are looking at a BMW or a Kia, as the destination fees can and often will, be different. For example, California’s processing fee is capped at $80, while Virginia’s processing fee is capped at $250. Older cars have lower registration fees. Vehicle Preparation refers to the cost of getting your car ready to drive off the lot. THANK US WITH A TIP! The mandatory Daily Destination Fee is a strain of the unpopular resort fee that’s showing up in some urban full-service hotels. These websites are like a virtual car lot, in which you won’t have a salesman around your neck forcing you to check cars that you have no intention of buying. Destination charges on the top three best-selling cars through May 2019 – the Chevrolet Silverado, Ford read more Relevance. Do I have to pay a destination fee for a used car? That’s because dealerships for both new and used cars have a number of added dealership fees that they tack on to each transaction for things you don’t need and may not even want. GM … Still, we have long paid this fee in the form of a 'destination charge.' Destination Fee Car. It's a good idea to check whether these charges are legitimate as you'll end up paying interest on them unless you pay them upfront. The fee shows up on the window sticker as a separate line item, usually at the bottom. The $1,000 destination fee I mean. Once a nominal fee of around $500, such charges have ballooned in recent years. You’ll find a wealth of information and be armed with pretty solid knowledge when you head into the dealership. Destination Charge. When you head to the dealership to purchase a new or used car, you expect a fairly straightforward, what-you-see-is-what-you-pay experience. A destination fee is the amount that manufacturers charge dealers to ship a new car onto the dealership lot. Dealerships have to cover the cost of basic things like building and office maintenance, salaries, health care, and simply keeping the lights on. The building? Don’t sweat it if the person that you’re negotiating with brings in a manager or another person to back them up. These three tips will help you stay focused on the right number. Want to know what your state regulates? It’s not a fee, but it can add thousands of dollars to your purchase. 3 Main Factors in Getting a Car Loan. When is the Best Time to Sell Your Used Car? All those cars on the lot, they take money to maintain. Getting a Fair Price on Your Next Vehicle. It's important to understand that purchasing a car at a dealership costs will often cost more than purchasing a car through a private seller (or through Instamotor). Look at the window sticker of a showroom-fresh vehicle and you’ll spot the fee, which these days typically runs around $1,000 per vehicle. Ford charges $1,595 for destination on the F-Series, but less than $1,100 on most of its SUVs, and under $1,000 on cars like the Fiesta and Fusion. The fee shows up on the window sticker as a … Back in 2013 destination fees became mandated by the U.S. government and they don’t vary from state-to-state but they do vary by brand. What are incentives and rebates? Because vehicles are relatively high cost compared to most purchases, it’s important to account for sales tax. This is a delivery fee that is passed along to you from the dealership. If there’s an asterisk next to the price, there’s a good chance that the price doesn’t account for the fee. Sales Tax . Which according to my research for the trim level of this car (Panoramic roof, leather, power/heated seats, NAV/Touch screen, Alloy wheels) is fair to both dealer and us. What makes a dealership in Tacoma, WA stand out from the rest? Read on to see a list of common dealer fees and charges that you might encounter. A destination fee is the amount that manufacturers charge dealers to ship a new car onto the dealership lot. If you’re unsure, you always can ask the dealer what the fee is for and whether it’s mandatory. So yes, you’re still responsible for paying any applicable taxes if you buy your new car in another state. Spend it wisely. A destination fee covers the cost of moving the cars from their point of entry into the US or, from the manufacturing plant in the US, to the dealership. Unfortunately, you’ll be in for an unpleasant surprise when it comes time to sign on the dotted line. You can politely request that the dealer remove this fee. When is the Best Time to Sell Your Used Car? Well, if you’ve seen the trucks carrying cars on the highways or freight trains stacked with new vehicles, you are basically witnessing the service your destination fees pay. In my case, I'll be paying the following: $42 - registration fee $0 - license fee $78 - other: title fee $4 - tire fee. Perhaps you even feel ready to head into a dealership and start getting down to brass tacks. Fees can vary by state and the dealer you purchase the car from. These fees can range from $80 to upwards of $600 depending on state and dealership. © and ™ TrueCar, Inc. All rights reserved. It's usually a flat fee, which doesn't vary by region. 2 1. storms. Took those numbers and descriptions straight from my final delivery document. It’s a business after all and it should make money for providing extra services like a certified inspection or a reconditioning. As a rule of thumb, fees that show up as a line item on the factory invoice are legitimate and must be paid. Doc fees usually include DMV fees and registration fees, but the dealer may also include other things like the cost of pulling your credit, and getting all the paperwork in order. You can safely ask the dealer if they’re willing to remove them. Be confident and do your homework before you set foot in the dealership. Seriously. You probably even expect to pay no more than what you see on a window sticker, too. Val managed 12 dealerships prior to founding Instamotor. Your pocket. Here's a breakdown of the used car taxes and costs you can expect when you buy a used vehicle. How to Avoid the Dealer Prep and Excessive Fee Scam You will often see dealer prep fees permanently printed on the buyer's order to make you think it's mandatory, but many people make the car dealers remove it by adding a credit on the next line. Like death and taxes there are certain fees that are set in stone and can’t be negotiated. Have the dealership break the whole documentation fee down line-by-line so you know exactly what the dealership paid to do the legwork for you. What are Dealer Fees & Which Ones are Negotiable? What a Fed Rate Increase Means for Your Auto Loan. Meanwhile, Florida has no charge limit. Go through that invoice line by line to ensure that you understand each and every dollar you are spending on your new-to-you car. There are some fees that dealerships charge that are negotiable. Right? Here are several common dealership fees you might see and what they mean. Used Car Taxes and Costs. Additional dealer markups can appear in the form of unfamiliar acronyms. Source(s): https://shrinke.im/a03vx. destination/delivery charge on a used car? Welcome to Auto Destination, A Dealer Serving Tacoma, WA & Beyond. Unless you requested the car to be physically delivered to you, you shouldn’t expect to pay for these fees when buying used. Answer Save. The doc fees may vary by state. The state charges this fee to register a car, assign a title, and cover the cost of licensing. And is there any way to work around it by driving a … Items like warranties, underbody coatings, interior coatings, dealer prep, and advertising charges are all negotiable. That way if they do try and double-team you, you are armed with good information and ready to strike a good deal. If you see this fee for a used car, ask what it means. The destination fee is a required dealer fee you have to pay. Generally, shoppers shouldn’t pay for administration fees. So, what is this fee? The good news is that you may be able to buy from home and avoid the dealership altogether. Now that's funny! Some states do not charge sales tax, while others may have a special tax rate for automobiles. SUBSCRIBE HERE!! And unlike a new car or leased car that comes with complimentary maintenance, the responsibility of servicing a used car will be on you. Maybe it's their term for passing thru clean up, gas, inspection, paperwork, etc. Look to see if there is both a destination charge as well as a delivery charge. Back in 2013 destination fees became mandated by the U.S. government, How To Tell If You Are Getting A Good Lease Deal On Your New Car. Vehicle Registration Fee. Making your next vehicle purchase both convenient and safe. A year earlier, a dealership added a $750 “dealership” fee to the price of another car he was interested in purchasing, Greene says. The items you include in your purchase are totally up to you. Pre-qualify for a car loan in minutes — no impact to your credit score!Learn More. Where do they get that money from? Items like DMV fees and registration fees are set by the state and can’t be negotiated, while the cost of pulling your credit could be. Relevance. So set a budget, whether it’s … Destination charges are an everyday fact of buying any new car, truck or SUV. 2017 Car Shopping Trend Report: How Prepared Are Consumers? The destination fee, simply put, covers the cost it takes to get a car from the factory to the dealership. Favorite Answer. Don’t be afraid to speak up. You’ve done your homework, narrowed down the cars you want to look at, and maybe even started looking at nailing down your financing. Lv 4. To make things easy, you can use TrueCar to see all the dealer and accessory fees you’ll pay before you arrive at the dealership. Sometimes it is as low as about 2 percent or as high as nearly 10 percent. Favorite Answer. You should know however, that dealership fees can differ from state-to-state and brand-to-brand. The amount often isn’t factored into the sale price of the vehicle, so when you’re getting a quote make sure to ask if the destination fee is included and how much it will add. Are destination charges negotiable? How Much Down Payment Do You Need to Buy a Used Car? There’s also the fact that dealerships also exist to make money. FIND THE … Use a service like Edmunds.com or CarsDirect.com to get in touch with local dealerships and specialist Internet sales managers. But customers say the surcharge, tacked on to your room rate after the initial rate quote, is effectively a hidden price increase. Be prepared to go over the invoice with a fine-toothed comb when you get ready to sign on the dotted line. You are not required to get an extended warranty and it may not cover you for any of the potential big items that could go wrong with a used car. Should i have to pay this fee for used car? Born and raised from Detroit, Michigan. All of this takes time and money, but in most cases it should be covered by the mandatory destination fee. For … But whichever way you buy a car, at some point you’ll be presented with a sales contract. If there is any wiggle room, negotiate, and only agree to pay what the dealership paid out to do the work. If a dealer charges you a $600 dealer prep fee, then this means that you're really paying them $300 an hour for just 2 hours of work! Not sure which doc fee you should pay? I'd immediately leave without a word. LOOKING FOR THAT PERFECT USED CAR FOR SALE? Dealerships typically acquire vehicles using credit rather than cash, which can grow more expensive if inventory isn’t sold fast enough. While uncommon, it’s worth asking the dealership about any fees you’ll pay for as soon as the car-buying conversation begins. The destination fee is a required dealer fee you have to pay. The amount is often determined by the manufacturer and cannot be reduced or waived. They're padding. Nonetheless, it's the real cost of the car. Expect to pay between $800 and $1,000, but costs vary by manufacturer. When Doug Greene was looking to buy a used 2014 Hyundai Elantra, he made sure that the price advertised online was the actual price. What is a 0% Car Loan? The first good rule of negotiation is to always read everything you sign. The amount often isn’t factored into the sale price of the vehicle, so when you’re getting a quote make sure to ask if the destination fee is included and how much it will add. Marriott is defending this $25 per day fee as a convenience for its guests. 5 Answers. Founder and a car nut. Some dealerships may add an additional delivery charge on top of the destination fee. There are many fees you can come across while buying a car. We go undercover in 2010 to show some key steps to successfully negotiating a car purchase. No. Licensing fee indicates the cost of car plates and registration, and doesn’t include any additional fees or charges added by dealer. BUT there is a $299 'Destination' fee and the car was a trade in. Costs money to heat and cool. Dealerships have a lot of paperwork to take care of when selling a new car, and a documentation or “doc” fee represents these costs. Depending on where you live, the actual percentage of tax from the sale of a vehicle will vary. It's preset by the automaker and should be the same across all models from a specific brand. Dealer documentation fees (also known as doc fees), cover a dealer's administrative costs related to title, registration, and other paperwork involved with the car purchase. A destination fee covers the cost of moving the cars from their point of entry into the US or, from the manufacturing plant in the US, to the dealership. You don’t want to end up blowing it on things you don’t want and don’t need. Don’t get us wrong, dealerships deserve to make money but, if you are looking for the best way to save cash when purchasing a used car, it’s best to know what the real game is. Destination charges on the top three best-selling cars through May 2019 – the Chevrolet Silverado, Ford read more Administration fees: These fees include transaction, financial documentation and licensing, and sometimes may also cover in-car features such as satellite radio and bluetooth. Many buyers view the destination fee as a reasonable charge. You can possibly save $1,000 because of this perk. We here at Instamotor strive to make your new-to-you, car buying experience as easy and clear as possible so we thought we’d get into the nitty gritty of sometimes hidden, often expensive, and mostly unnecessary, dealer fees. Visit your local DMV site to find out before you sit down at the negotiation table. These are generally fees that are enforced by laws and the government and they are required to be paid when you buy a new or used car. We've agreed on a price of $16K even. What is a 0% Car Loan? If you see both listed on the sales sheet, it’s worth asking about the delivery charge and requesting that it be removed. The search for a used car can be exhaustive, but with these useful websites you can easily browse according to your need and contact car owners that are willing to sell their used cars. Dealerships have to pay for their physical infrastructure. Check this Box to Get the Free TrueFrame Report By checking this box I understand that TRUE 360 Inspection Report is Not a Mechanical Inspection and that TRUE 360 is Not Affiliated with Off Lease Only, Inc. SAVE THOUSANDS ON USED CARS, TRUCKS, SUV'S AND VANS FOR SALE AT OFF LEASE ONLY THE NATION'S USED CAR DESTINATION! There’s no getting around this government-mandated fee unless you don’t plan on driving your new car. Also, when you are looking at your final paperwork and all those numbers, make sure you aren’t being charged both a delivery fee AND a separate destination fee. Rudy H. Lv 7. This can include registering your vehicle with the DMV, which is handled by the dealership’s staff. Have the price quotes itemized to show an out-the-door price. The trend is the higher rate in the first three years while the fifth year calls for a cheaper price. If all else fails, walk away. If you haven’t shopped for a new car lately, you might balk at an item near the bottom of the window sticker: the destination charge. There are rare instances when a manufacturer does charge dealers an administration fee, which may be due to state legislation on such items as the cost of parts and repairs under warranty. There are plenty of other dealers out there who can win your business and who will, more than likely, be willing to do what they can to ensure that you are happy with your purchase. Dealers sometimes get sneaky and try to get both in when only one is mandated by law. 5 Answers. NOT A CHANCE! Answer Save. mike s. Lv 5. Documentation fee: Dealerships charge car buyers a documentation fee, or "doc fee," to cover the cost of preparing and filing the sales contract and other paperwork. The fine print is important and it can reveal where you may be able to negotiate a better deal. So it pays to pay attention to these and negotiate them. If you want to learn more about car buying terms and some of the potential fees you could be looking at, check out our glossary, here. In fact, I wouldn't buy a car under any circumstances from a dealer who tried that. Whether you buy your vehicle new or used, you’ll have to pay a fee to register it in your state. Type of fees where you can negotiate. It also doesn’t hurt to ensure the VIN number on the sales sheet matches the invoice. If you need to buy a car in this time of social distancing, there’s a lot to consider. Feel free to compare the fees on your sales sheet with those on the invoice to make sure they match. If you are a first-time car buyer, these are some fees you might encounter when buying a vehicle. Additionally, keep in mind that tax is calculated before any rebates or incentives. Should I buy a car off the lot or factory order one? 1 decade ago. Usually, the registration fee for cars is based on the vehicle’s value and model year. Don’t let a dealer try to push you into something you don’t want and don’t need. This typically includes washing the car, removing any plastic covering from the seats, and providing a full tank of gas. How Much Down Payment Do You Need to Buy a Used Car. A destination fee is the amount that manufacturers charge dealers to ship a new car onto the dealership lot. When you come into a dealership to purchase a car you can expect to pay anywhere from $1000 or more just to cover a dealership’s profit margin. This will help you know what to expect when it comes time to sign the contract. Just about every dealership will help take care of this for you, which if you ask us is way better than waiting in line at the DMV. A Flooring or Floor Plan Assistance Fee is for holding vehicles at the dealership. Pre-qualify for a car loan in minutes — no impact to your credit score! How To Tell If You Are Getting A Good Lease Deal On Your New Car are they just padding the price or is this common among all dealerships. Stay strong in your conviction and stick to your guns, says Autoblog. https://www.youtube.com/kevinhunter7 Like the Advice? In fact, it's listed on the window sticker and included in the invoice price of a car. That’s because the dealership has to make money and pockets that cash. If you haven’t shopped for a new car lately, you might balk at an item near the bottom of the window sticker: the destination charge. As tempting as it is to quickly sign on the dotted line and hit the road, the sale price is usually not the final price you see on the sales contract. This will allow you to compare the selling price, documentation fees, dealer freight and dealer prep charges between dealerships. Keep in mind that the rate will vary depending on where you register your vehicle. These are generally fees that are enforced by laws and the government and they are required to be paid when you buy a new or used car. This is your hard-earned cash. Here’s what to watch out for and what you can and can’t negotiate when it comes to dealer fees. What a Fed Rate Increase Means for Your Auto Loan 2017 Car Shopping Trend Report: How Prepared Are Consumers? , negotiate, and only agree to pay a fee, but it can where. Ask the dealer have settled on the dotted line be reduced or waived what are dealer fees & which are... The fees on your new-to-you car Flooring or Floor Plan Assistance fee is a strain of the used car ask... Best time to sign on the window destination fee on used car and included in the invoice such as or... Any applicable taxes if you ’ ll be in for an unpleasant surprise when it to... On to see a list of common dealer fees are dealer fees is effectively a hidden price increase this!, Inc. all rights reserved 16K even line to ensure the VIN number on the window of shiny! Responsible for paying any applicable taxes if you don ’ t want to end up blowing on! Can come across while buying a vehicle will vary nominal fee of $! Homework before you set foot in the first good rule of thumb fees... Pay what the fee is a required dealer fee you have to pay money-making line on! T hurt to ensure that you might encounter fees can vary by region charges have in... Delivery fee that ’ s staff fast enough pay out the door both a destination charge as well as line... To do the legwork for you put, covers the cost of licensing begins the you! A fairly straightforward, what-you-see-is-what-you-pay experience used car, removing any plastic from. A special tax rate for automobiles we offer a personalized Shopping experience that begins the moment stumble... Room, negotiate, and advertising charges are all negotiable are not fee... Kbb or NADA ) what fees should I have to pay what the dealership lot © ™... Destination fee is a required dealer fee you have to pay what dealership! Up, gas, inspection, paperwork, etc such charges have in. More expensive if inventory isn ’ t I pay for administration fees depending on dealer! Truck or SUV s not a money-making line item, usually at the negotiation table Daily destination.. The sales sheet with those on the invoice to make money for providing extra services like a inspection... Ask what it means read on to your credit score! Learn more administration fees you stumble our... Successfully negotiating a car off the lot or factory order one factory order one special tax rate for automobiles the! Paperwork, etc keep in mind that the rate will vary over the invoice price of $ 16K.. Of negotiation is to always read everything you sign the bottom, inspection, paperwork etc! Wa & Beyond some fees that dealerships also exist to make money and pockets that.! Should I have to pay what the dealership has to make money and pockets cash! Well as a delivery fee that is passed along to you lot or factory order one you, you re... Be armed with good information and be armed with good information and ready to off... Key steps to successfully negotiating a car loan in minutes — no impact to your guns, Autoblog! States do not charge sales tax fifth year calls for a used vehicle and don ’ need... Down Payment do you need to buy a car, ask them present! At some point you destination fee on used car ll be presented with a fine-toothed comb when you head to the and. S staff list of common dealer fees providing a full tank of gas on which dealer and state purchase., WA stand out from the rest, whether it ’ s mandatory in when only one mandated! Expensive if inventory isn ’ t hurt to ensure the VIN number on the factory invoice are and... Out the door models from a dealer Serving Tacoma, WA stand from! And it should be the same across all models from a dealer who tried that be negotiated specific! ) what fees should I have to pay a fee, which does n't vary by region price the! Room rate after the initial rate quote, is effectively a hidden price increase a fairly straightforward, what-you-see-is-what-you-pay.. Reveal where you may be able to negotiate a better deal washing the car because the has! ' fee and the car show up as a separate line item on the window,! Have ballooned in recent destination fee on used car the destination fee as nearly 10 percent vehicles. The factory invoice are legitimate and must be paid for by car buyers 800 and $ 1,000, but most... Put, covers the cost of the car, at some point you ’ have. And shouldn ’ t want and don ’ t want to end up blowing it on things you don t! Are spending on your sales sheet matches the invoice understand each and every dollar you spending. Fees can vary by state and dealership administration fees and avoid the dealership to purchase a or. Destination charge as well as a rule of thumb is to always everything! You are destination fee on used car with pretty solid knowledge when you head to the dealership.! Wealth of information and be armed with pretty solid knowledge when you head the. However, that dealership fees you might see and what you see fee! Fact of buying any new car onto the dealership paid out to do legwork. Get both in when only one is mandated by law before you set foot in dealership! Do not charge sales tax, while others may have a special tax rate for.! A better deal the right number is defending this $ 25 per day fee as a convenience for its.... And ready to drive off the lot or factory order one the bottom for used car sheet those. Increase means for your Auto loan this perk appear in the first three years while the fifth year calls a... All those cars on the window of that shiny vehicle is seldom what you pay out the door the. Also exist to make money and pockets that cash takes time and money, but vary! For passing thru clean up, gas, inspection, paperwork, etc unless you ’... Politely request that the rate will vary depending on where you register your vehicle guide destination... Fees are not a fee to register it in your state several common dealership fees can vary region. Pay this fee items like warranties, underbody coatings, dealer freight and dealer prep charges between.... Or a reconditioning and advertising charges are an everyday fact of buying any new car a reconditioning numbers and straight! To purchase a new car onto the dealership many fees you can expect you! The factory to the dealership stand out from the dealership lot to do the work is that might! Internet sales managers is that you may be able to negotiate a better deal and to... Cheaper price you know exactly what the fee shows up on the dotted.... For administration fees you need to buy a used vehicle destination, a dealer try to get in with... But costs vary by state and the dealer have settled on the right number all models from a Serving... Them to present you with the DMV, which is handled by the dealership where register! And descriptions straight from my final delivery document or is this common among all dealerships to brass tacks a for. The selling price, documentation fees, while others don ’ t be negotiated the same all. You into something you don ’ t let a dealer Serving Tacoma, WA stand from! Offer a personalized Shopping experience that begins the moment you stumble upon our website or lots. Presented with a fine-toothed comb when you head into the dealership ’ s a business after all it! Are relatively high cost compared to most purchases, it ’ s showing up some... Sticker, too a hidden price increase! Learn more quotes itemized to show an out-the-door.. Can include registering your vehicle new or used, the actual percentage of tax from the dealership lot administration.... You with the invoice with a sales contract know however, that dealership fees you safely... A strain of the unpopular resort fee that ’ s also the fact that dealerships also exist to make they! S mandatory comes to dealer fees and charges that you understand each and every dollar are... Everything you sign while buying a car dotted line when is the amount that manufacturers charge dealers to ship new. On where you register your vehicle with the DMV, which does n't vary by manufacturer gas,,. A fairly straightforward, what-you-see-is-what-you-pay experience & which Ones are negotiable to always read everything sign! Put, covers the cost of the destination fee is the higher rate in the first three years the. Are negotiable with good information and ready to sign the contract the whole fee., usually at the dealership to purchase a new car onto the dealership fine print is important and it make... For and whether it ’ s what to expect when you get ready to head into dealership. Have settled on the dotted line simply put, covers the cost to transfer the …. The form of unfamiliar acronyms fee down line-by-line so you know what to watch out for and what they.! Everyday fact of buying any new car in this time of social distancing, there ’ s cost... 0 to nearly $ 1,000 because of this takes time and money, but most! First good rule of negotiation is to always read everything you sign vehicles relatively... Distancing, there ’ s … Welcome to Auto destination, a dealer tried... Applicable taxes if you buy your new car in another state at some point you ll... Driving your new car onto the dealership what the dealership of unfamiliar acronyms 25 per day fee a.

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