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Advertising Fees

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Comments

  • zueslewiszueslewis Posts: 2,353
    yes, but it sounds like bunk - a way that a weak salesman can mandate his sales pitch...
  • tblazer503tblazer503 Posts: 620
    is one of those things that i think is bunk.

    1st, most dealerships here get the windows etched anyway. What you are paying for is the "activation" so that if someone calls 1800vinetch or whatever, they will notify the police, etc. I highly doubt that an "activated" etching is more of a deterrent than having an etching.

    2nd, you can pay $20 and order an acid etching kit online.
  • landru2landru2 Posts: 638
    When activated these things usually get you some sort of insurance-type policy. i.e. pay to get the etching activated and if your car stolen car is not recovered within 30 days we will give you $5000.
  • audia8qaudia8q Posts: 3,138
    if you worry about the retail side of things then you never see an advertising fee, just like the toilet paper you mentioned... You want to work from invoice up then you should expect to pay the fees on the invoice.
    My friend is a manager of a major appliance/video chain store and they have ad and other fees on their invoices also. It's just that nobody is rude enough to ask them for a copy of the invoice on that new sony WEGA tv.
  • frulipfrulip Posts: 3
    Seemed to find a decent sales guy, who agreed to a 500 commission over invoice on a 2003 Tahoe. However he now says a mandatory advertising fee of close to $400 is applicable.

    Is this normal or can i have this removed with some firm tactics.

    Thanks !
  • landru2landru2 Posts: 638
    A few things:

    Do you know what invoice is?

    It sounds like he wants you to pay $900 over invoice. Ask him to show you the invoice and see if the ad fee is included in car's invoice price.

    Adding a fee after the final price has been determined (i.e. $26,876, not $500 over invoice.) is dirty pool and shouldn't be accepted.

    Everything can be negotiated. If you don't want to pay $900 over (or whatever) then don't.

    The $500 over invoice is not "commission." The salesman's commission will generally be a percentage of that $500; likely $75-$100.
  • rivertownrivertown Posts: 928
    I agree with Landru; it sounds like you're getting terms mixed up.
    And like your salesman is exploiting the mix-up.

    I have no idea what Tahoe's are selling for; but, given that you're buying an '03, I think sticking with your original offer is reasonable. Edmunds shows TMV to be $500-$1000 over published invoice and doesn't adjust 'invoice' for regional ad fees.

    I wouldn't get into a discussion of terms, etc. Try something like, "I can pay $XX,XXX.XX plus tax and license fees."
  • montanafanmontanafan Posts: 945
    The salesperson quoted $500 over invoice and that is what he has asked for. The $400 is the difference between what the buyer thinks invoice is and what the actual invoice is. What the buyer needs to know is that the invoice information they have is not accurate. It is missing the $400 advertising fee that is "included" in the invoice price, not "added" to it.
  • frulipfrulip Posts: 3
    I had him fax me over the invoice and the advertising fee is written in by hand on the bottom for $448.49, as well as $99 in window etching, $131 Motor Vehicle, and $99.75 in Document fees.

    I dont mind the etching or obviously the motor vehicle or DOC but I refuse to pay the advertising fee. Anyone disagree and think I am being unreasonable?

    Thanks
  • rivertownrivertown Posts: 928
    It's tough to know - without knowing the car and details on rest of the deal, but
    1) regional ad fees are legit
    2) this dealer's ad cost can't be confirmed, so the $448. 49 could easily be scam or part scam
    3) to introduce the additional charge late in the negotiations is definitely scummy, IMO

    Were it me, I'd look at the whole deal to see how it compares to TMV. If you're still at/under TMV and close to invoice and you really like the car, I'd make an all inclusive offer and be prepared to walk if it's not accepted.
    If this is the same Tahoe, I think you're still a little high. All in all, you've started/gotten sucked into a losing negotiation by negotiating from invoice, IMO.
    So, I'd make a final offer of invoice plus $500-$600 in a dollar figure and walk if the final numbers are any different. It's the end of the month; and the dealer's got holdback contributing to the profit, too.
    (The window etch is a scam. The doc fee is pure profit.)
  • montanafanmontanafan Posts: 945
    If the ad fee was hand written at the bottom , then it is a good chance what he faxed over wasn't an actual GM invoice. Unless the dealer received the Tahoe from a dealer in an area that didn't have ad fees. In that case the second dealer would not have to pay any ad fees. Was there infomation on the faxed page to give you any clues that this was an important and infomation full document? Invoice numbers, VIN, GMS prices, account #s? Things like this should be in the header or on the right side of GM invoices (based on those I have seen).
  • tblazer503tblazer503 Posts: 620
    I don't recall paying any ad fees here in the NW for my GM. As for the window etching, tell them to take it off.=o) hehe.
  • Do not pay those fees. They are just lining their pockets!
  • Ok here goes, the regional advertising fee is a legitimate line item on a factory invoice for GM vehicles. It is figured on the M.S.R.P. without destination included. It varies by region (here in Chicago it is 1.5%) It will be printed on the invoice and like the destination charge it is not waivable, deletable or negotiatable. Montana was on the right track regarding hand written entries, but...You see the invoice at Dealer "B" of a vehicle traded from Dealer "A". Your dealer "B" is in a region that charges at the 1.5% but the paperwork from "A" shows a different rate. The dealer is charged by the formula and the change reflects in the invoice total. An agreement to pay "Xxx over invoice" would include this adjustment as it would have been figured on an original stock unit shipped directly to Dealer "B". Etching and to a lesser extent, DOC fees are usually deletable on request.
  • Just to keep things clear. The invoice is the invoice. A vehicle swapped between dealers is not reinvoiced. The ad fees are at the orig dealers percentage. If the vehicle goes from a low/or no percentage area to a higher area, no additional ad fees are owed by or invoiced to the second dealer. If a vehicle goes from a higher area to a lower/or no area, no refund comes from the manufacturer to the second dealer.
  • mitsu6mitsu6 Posts: 5
    Every dealership has to have an invoice from the manufacturer.The invoice shows the destination charges, the dealer hold back and usually the mark-up on the vehicle.
    Next- when you negotiate the price of the car, on the buyers order it will show in some cases as DOC fees, advertising, detailing, stamps, etc...) You'll see a dollar amount that is called Dealer Fees and in small letters you'll see what are they charging for. You always have to read the fine print, if u cannot see or read the fine print ask to see an original so u could see the TRUTH. I hope this will help you. :)
  • z71billz71bill Posts: 2,000
    You state - It (the ad fee) -- is not waivable, deletable or negotiable

    Sorry to disagree with you, but in business - EVERYTHING IS NEGOTIABLE - Politly refuse to pay the fee -maybe agree to pay 30% of the fee or if you do agree to pay the ad fee - get something in return. Say something like - OK I will pay the $462.00 ad fee but only if you agree to drop the $199 glass etching and $399 Vehicle protection package down to the $50 (or whatever) it cost you.

    The ad fee can be legitimate - but that does not mean it is not on the table to be reduced or eliminated.

    In fact any time you are negotiating and hear a statement like - This is "always" charged, this is part of our "standard" agreement, this is "company" policy it is a very good chance it is NOT "always" charged, NOT "standard" on every agreement and NOT really "company" policy.
  • zueslewiszueslewis Posts: 2,353
    Concentrate on the out the door price - if they meet your requirements, however unreasonable, who cares how they do the math.

    The advertising fee is NOT negotiable, since it is a direct charge from the manufacturer and listed in the invoice, but of course, the final, "out the door", "driveaway", "over the curb" price IS negotiable.
  • z71billz71bill Posts: 2,000
    No struggle - but how do YOU determine a "fair" - out the door, drive-a-way, over the curb price without looking at the details?

     IMO you must get into the details or you end up paying way to much.

    $250 over invoice sounds good

    $400 ad fee - why fight it

    $199 glass etching - no big deal

    $399 Protection package, not bad for a $10 wax job and a can of scotch guard

    $150 Doc fee, after all someone needs to do the paper work

    $149 pin stripes,and $200 for mud flaps - OK since you already put them on

    $1,500 "EXTRA value package A" - floor mats and a first aid kit, plus tire warranty and locking lug nuts - How could I live without these

    Give me $7,500 for my trade (but the blue book trade in value is $11,000) - OK I understand - you have 2 dozen on these on your used car lot and you can't even give them away.

    Finance me at 15% - for 72 months well OK it does lower my payment (and keeps me upsidedown for 5 1/2years!)

    Extended warranty adds another $1,500 - you can just add it into the loan - thanks for looking out for me - I will give your name to all my friends.

    Since my loan is so high - you now say I need credit life and gap coverage. Great add it to the loan

    But why should I complain I only paid $250 over invoice!!
This discussion has been closed.