Regional Advertising Fee - Legit Or Crap?

[Limerick]

I have exhausted myself calling dealers, trying to order my Av close to invoice pricing. ?The problem I'm running into, is that every single one wants to add ~$590 in an advertising fee to the invoice that everyone can see on KBB or Edmunds. ?It's quite irritating, and it seems I am unable to avoid it.

I have been told repeatedly that Chevy charges this to the dealers, and it's part of the invoice pricing.

Can anyone help with this? ?I have no idea if this is legit or bull, but they all seem to be doing it (Total of 6 dealers now).

 

[Limerick]

Just a quick note, one of the dealers I was working with "dropped his drawers", and sold me the vehicle $400 below his supposed invoice, which is $200 above the factory invoice w/o this advertising charge.

Now I cross my fingers for the great rebates to continue until my Av comes in

PS, I would still like to know if this regional advertising is crap or legit.

 

[AvaLance]

Yes it is Legit every dealer has and advertising fee most have a different %age like the dealer I work at has a 1% Advertising fee some dealers I think will work around or drop off the advertising I am not sure though

 

[Limerick]

Yes it is Legit every dealer has and advertising fee most have a different %age like the dealer I work at has a 1% Advertising fee some dealers I think will work around or drop off the advertising I am not sure though

I was told it's based on some percentage of MSRP, so in other words, it varies with every purchase. So they wanted to charge me ~1.5%.

 

[AvaLance]

it will varry like I said every dealer has a percentage like you said 1.5% add that to the invoice or MSRP is correct also like I said some dealers if you get them to do it they will drop it

 

[sparky]

The internet has changed automotive buying FOREVER. That said the makers and their dealer networks have not got together to figure it out yet.
Once all the bumps are worked out, and the dealers that won't let go of the good old days are gone, I think people will have a better feeling over the whole purchase idea.

 

[brmiller]

It sounds to me like the fee is technically legit, but it's still up to the dealer on whether or not to pass it on to you and make a stink about it in the negotiating phase. I think this is what Lance was getting at. It's there, but the dealer can negotiate a final price with you and not tack it on after the price has been settled. Or he can be a little more sneaky, and say "Yep, we agree to this price." But then add it on afterward. My dealer mentioned no such advertising fee. If he charged it, it was embedded in the overall price, after negotiating. But he didn't make a huge deal of it.

Bottom line--if it were me, I wouldn't care if he called it an "egg-laying fee". So long as the final dollar amount is something you can handle, who cares what they call the extra fees? If he wants to add ~$590 on to it, negotiate another $600 off the "pre-fee" price or tell him you'll walk. Do the same with everyone. Eventually you'll get someone to play ball (unless you're being ridiculous with the price you want).

Good luck.

Brendan

 

[AvaLance]

Brmiller is right

 

[Z-66Mike]

Yeah, reminds me of the dealer I went to and the salesman told me the owner had to pay for his brand new so many million dollar building. I don't care about his building, I just want to get the best price. So I just went to another dealer with a smaller building and a smaller price!

 

[zeeya2000]

Shoot, we could go on bout this one all night long. Dealer i sold for back in the late 80's when the oilfield slowed down had index cards with all the information for each vehicle.
MSRP was listed with invoice down at bottom very small. That way salesman could show you the card and act like it was a big secret and show you the invoice. They had a 500 dollar cushion built into that invoice, so they always had at least a 500 dollar deal plus their 3% holdback to top it off.
They have to make enough to survive which is where the 3% hold back helps out. I have only had that dropped one time when i purchased a SSEI bonneville that had been on the lot 6 months so they could get it off of their insurance list and monthly cost.
call it cushion, call it advertising. They all have a little in there to try and get that extra buck.
Since internet has come up, the last few years have not had that much problem get a 500 over invoice deal. Now with the rebates i ask for a 500 over minus the rebates.
Did any of that makes sense? out of it today.
zeeya

 

[Limerick]

It sounds to me like the fee is technically legit, but it's still up to the dealer on whether or not to pass it on to you and make a stink about it in the negotiating phase. ?I think this is what Lance was getting at. ?It's there, but the dealer can negotiate a final price with you and not tack it on after the price has been settled. ?Or he can be a little more sneaky, and say "Yep, we agree to this price." ?But then add it on afterward. ?My dealer mentioned no such advertising fee. ?If he charged it, it was embedded in the overall price, after negotiating. ?But he didn't make a huge deal of it.

Bottom line--if it were me, I wouldn't care if he called it an "egg-laying fee". ?So long as the final dollar amount is something you can handle, who cares what they call the extra fees? ?If he wants to add ~$590 on to it, negotiate another $600 off the "pre-fee" price or tell him you'll walk. ?Do the same with everyone. ?Eventually you'll get someone to play ball (unless you're being ridiculous with the price you want).

Good luck.

Brendan

I came to agreement with one dealer, where he offered me $400 off the "supposed" invoice with the ad fee thrown in, so in essence I only had to pay $200 of the $600 fee.

Then later yesterday, another one of the dealers (who is a huge dealer) called me back and said he probably could match that. This is where I draw the line with car salespeople... I get sick of their "match" game. I politely told the guy "no thank you, I've already ordered the truck from the other guy". Funny how they act like I should be loyal to them or something. I also reminded him that he was extremely helpful, but it was a $500 difference in pricing, so it was a no-brainer. I also reminded him when I called him the first time, I was looking for the best price.

Maybe someday buying a new vehicle won't be so frustrating. I didn't even bring up the fact how most of the dealers are totally low-balling my trade-in as well. Amazing how KBB becomes so inaccurate when it works in their favor. I just can't wait to get the Av now, and forget the 2 week ordeal in finding a dealer that would work with me on a good price.

 

[jonezy]

To calculate TMV, begin by looking up the car you want to buy on Edmunds.com. Follow the prompts to arrive at a final TMV price with options for the exact car you are buying. Keep in mind that this price includes the destination charge, which is levied by all manufacturers. (However, the invoice price might vary in certain regions where advertising costs and other fees are included. Edmunds recommends paying the fees listed on the invoice, but questioning any advertising fees that appear on the purchase contract.)

 

[txyank1]

I guess we can call ?it legitimate crap. I got the GM Suppliers Discount Price, which by the way is listed right on the Invoice now along with the Advertising fees. We had a dicussion and I expressed my thoughts on the subject but there was no budging at all in this instance. If I were not already getting GMSDP I may have pushed harder. The ad fees were pretty much the difference between Edmunds Invoice price (which I had with me) and the actual Invoice price.
I also had with me printouts of NADA, Kelly Blue Book and Edmunds price for my trade. It has always been my experience that Dealers around here used NADA as the bible. But this Dealer uses Kelly. This particular Salesman said he had been to a Kelly Seminar where they explained just how hey arrive at thier pricing. There was also a diffrence here between what he got and what I got. Basically it was because, per Mr. Kelly, you don't add options that are already included in an option package. I beleive it was Edmunds who used to specifically tell to be sure to add them all, maybe that's changed now. Anyway at over $9,000 below MSRP and a satisfactory trade-in (after some haggling) I'm happy. Even if I did pay a few hundred for advertising. Hey I don't like paying $50 Documentation fees either!