New Truck Charges?

[gstreak]

I just ordered an Avalanche and agreed to pay $500 over invoice. Sounds good right? Well, when I was walking out I made the comment to the dealer, "That was pretty painless." I did not have to leave a deposite. He jokingly came back with' " We'll make up for it when yopu take delivery." When I asked himearlier he had mentioned a possible advertising fee.

The question is, What should my total be? I know I have to pay Invoice + $500, Destination, Tax, $45 Doc and DMV. Are there other fees? What is the advertising?

 

[Leather]

Never pay the Administration fee. Mine was $189.00, my friend who is in the car business told me it is just a money maker. They will never lose a deal because u tell them u wont pay the ADMIN FEE! It worked for me GL

 

[Alaska_AV.]

the manufacture alots them 500-800$ to advertise each truck

no advertiseing means they get it all.

8 monthes on the lot gets them next to no $ from manufacture

 

[rlc777]

A dealer invoice includes the invoice prices on the base vehicle and options. It also includes the destination charge ($720) and advertising fees that are around $500.00. That is the invoice price a dealer agrees to when they agree to invoice.

I have two Av invoices in front of me right now (from when I was shopping last month). One shows co-op advertising at $322.98, the other $333.68. In the same order, one shows local advertising at $161.40, and one shows it at $166.84. From what I know, these are legitimate expenses to the dealer. However, let's face it, no one knows what the dealers really get back from GM beyond the 3% holdback, or if they get anything back on stuff like this if they sell quickly, etc.

Of course, they are entitled to a good profit (the American way ). But be sure of this, they are making money somewhere on every deal. Also, watch yourself in the finance room. The finance guys make tons of money for dealerships in add ons and fees with customers who think they have just scored a good deal on the show room floor. What you gained in the negotiations could easily be lost because you relax your guard . . .

 

[wrchism]

I'll add my second to watching what goes on in the finance room . . . they have a whole laundry list of stuff that they want to sell you which are all BIG money makers for the dealers. Their pitches can also be very convincing, and they are very persistant

You'll find yourself asking the financial droid "what part of NO don't you understand?"

 

[rlc777]

I forgot to mention that administration fee. I agree with Leather. Never pay the administration fee. That is not an invoice thing, but it shows up as an expense on the bill of sale. It is just a money maker.

A good salesman will tell you that everyone pays this fee. There is truth in this statement. The way they set it up on the billing, everyone must pay it. However, they can back the cost of the admin fee out of the vehicle price, or they can increase the value of the trade to offset this profitable little line item on the sales contract.

Bottom line, you negotiated $500 over invoice (base vehicle price, optional equipment, destination charge, advertising fee). Besides tags, taxes and some possible minor fees, don't pay more than this. Get them to back the admin fee out if they try to add it. You should not have a problem with this.