routesixtysix

I plan on ordering a 2006 convertable in the near future with 3LT, U3U, Z51, and RC8. I plan to shop around before putting in the order. The local dealer I talked is under MSRP , but is quoting a 2% of MSRP advertising fee, which just about get's my out-of-pocket back to MSRP. I last bought a new Vette in '88 (which I still have) and am wondering if all GM dealers do this advertising fee.

dstelbrink

If you are buying the car for $XXXX under window sticker the "advertising cost" should not be a factor.

If you are buying the car for $XXXX over dealer cost then the "advertising cost" is a factor. The dealer invoice will have the price of the car and options and then "advertising cost". The dealer is paying GM a set % on each car (should be about $1,200 or 2.2%), then GM pays for the dealers advertising.

The 2006 car I ordered has a window sticker of $59,775.
The dealer cost is $52,583 plus advertising say $1200= $53,783.
The difference about $6000 is what the dealer has to work with in making you a deal.

Good luck!

Forvettes

Nope, my dealer didn't add anything extra. Any costs for advertising should be included in MSRP. This is just another name for "market adjustment" or "extra profit".

Flatbush_Harry

Advertising is cost of doing business. To the extent that the dealer figures it into his pricing to you, great, but as an additional extra, I would not entertain the discussion. If you can't reach agreement on this point, consider another dealer.



Harry

dstelbrink

You didn't read the responce.

The MSRP is the cost of the car with all options, it will never list "advertising cost". Anything added to MSPR is extra profit.

The dealer cost or invoice will include the "advertising cost". The dealer can sell the car for what ever he wants but he is not going to sell for less than dealer invoice plus a profit.

JmpnJckFlsh

Ditto. If you are working a deal VERY close to dealer cost, consideration of the GM advertising fees MAY be warranted if he's paying them...You are not at that price level at 2K off a Corvette. Tell him if he wants to sell you a Corvette, he's paying for the advertising to bring in OTHER customers. All dealers don't participate in the GM advertising program...find one that doesn't.

gkvetteuno

Dealers are really slippery.

AGMS

Advertising Fee`s are

jim213

One dealer I had talked to insisted on a $399.00 "processing" fee. This would cover all the paperwork etc. Obviously I walked as there was no give from them. Also tried a $795.00 wax and leather treatment. Geez..........

hlcptr

I made a deal on a new Tahoe in July. I had never dealt with this dealer before. We agreed on a price. When I went in to sign the papers, they had added in two additional items totalling over a grand. The first one was an "advertising fee". I balked and started to walk out. They offered to cut it in half. I kept walking. I never did see the second item.

I ended up buying the very same car at another dealer for $900 less than the original agreed price.

aero400

I had a dealer tell me about an advertising fee too. I do not understand this concept at all. I want to buy a car... what does advertising have to do with me or the car I'm buying? I'm not getting anything out of this. Makes no sense to me. What next, an "electricity fee" because the dealer has to pay his electric bill? I don't get it. If the dealer has to pay GM for some advertising program, that's an expense. If they can't pay their expenses then they shouldn't be in business.

Is this "advertising fee" thing common? Is it legit for a dealer to ask for this? Or is it pure trickery? If this IS a "legit" thing, what is a fair amount for the "advertising fee"?

Flatbush_Harry

Dealer has advertising he has to pay GM and, possibly, local costs to himself for. His prob not yours...refuse cordially.



Harry

Mr5150

My dealer quoted me 2500 over invoice plus the 2% ad fee which is legit...

70Nav

Well, my input on this is to offer them a total price, period! They can include any and all fees they want. I would just offer them a number and let them divide it anyway they want. Dealers today seem to want to negotiate a price then add processing, advertising, tax, ad infitum... Don't play their game. If not, I suggest you look elsewhere. There are lots of dealers who will shoot straight and take the offer if it gives them a profit.

clnhse

All dealers in LMG's, local market groups ,ad a certain percentage to the cost side of the invoice usually 1%. There are about 50 such groups in the USA. Once a group, usually about 10 to 20 dealers, does this GM matches it with 25% more. You will notice adds labled something like Home town chevy dealers. Our group spends over 300 k a month in our market. Also a dealer can add up to another 1% to the cost side and can claim it back. Usually about 30 k a month for a dealer my size. So if you add it up there is 2% added to the cost of the invoice for advertizing in most stores. You can not do this but certain times a year some rebates are only offered to LMG dealers putting a non LMG dealer at a disadvantage.

jschindler

He's exactly right. On a cost plus, it's legit. On a negotiated deal, it's like them adding in their electric bill at the last minute.

not08crmanymore

every invoice i ever saw has the ad fee incorporated into it.then you get the retail msrp.and start discounting.it's not an added fee after the fact.and it's not a b.s. fee either!those tv commercials and all the other ad's are not free!!we all pay ad fees for everything you see on tv,newspaper,etc!although 99% of the time on a far less grand scale than buying a car,but believe me, it's factored in.So,start with msrp,get your discount,and that's that.If said dealer tries to ad more fees,you walk!

warthog34

the advertising fee is not a bs market adjustment or anything like that. it comes out of the dealers holdback I believe (the commission/rebate that GM pays the dealer, a % of each sale). the math works like this...

dealer pays GM invoice price for car
dealer sells car
GM pays dealer 3% for selling car less some % for their advertising fee

this is how you arrive at the "true" dealer cost for a car (of course there's a ton of other stuff between GM and dealers that makes the water even more murky so I'm not sure how true it is)

BACH

i'm in the car biz have 4 dealerships no gm but this advertising thing is just a scam to squeeze more $ from you tellthe guy he's a crook and you're walking

shopdog

The dealer is trying to rip you. Dealers do have advertising expenses, they are part of the cost of doing business, same as their gas, electric, and water bills. Ever see any other business try to tack on an extra charge above and beyond their normal selling price for their gas, electric, water bills? No? Well then a legitimate car dealer won't do it either.

The important thing to make very clear when negotiating to buy a car is that you are negotiating the out the door price. No adds, no ups, no "fees". If they try to add anything after they accept a signed order, walk away. Don't put up with this crap. It is an unethical business practice. If they'll screw you on this, they'll screw you on anything.