Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!





Advertising Fees

12425262729

Comments

  • zueslewiszueslewis Posts: 2,353
    or would you just blame someone else because of poor car buying skills?

    $250 over invoice sounds good

    Great, add taxes and licensing and we're done.

    $400 ad fee - why fight it

    Because it's part of the invoice cost - the dealer can't make it "go away".

    $199 glass etching - no big deal

    Just like drugs, "just say no".

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

    Refer to "glass etching" above.

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

    If it's allowed by your state, then all dealerships will do it.

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

    How about, "just say no" - and "remove those items, please, I don't want them".

    $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

    Floor mats in parts dept, $50, first aid kit, Wal-Mart, $10, tire warranty (forget it) and locking lug nuts (Pep Boys, $20).

    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.

    Dealerships are businesses - businesses stay in business by making a profit. If you don't like what you're offered, sell it yourself.

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

    If you have poor credit AND you're buying more than you can afford, it's nobody's fault but your own.

    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

    Extended warranties are negotiable - then again, there's that "just say no" phrase you hadn't learned yet.

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

    See above.

    But why should I complain I only paid $250 over invoice!!

    You shouldn't - if you just said "no".

    You get up and walk out without thanking them for the free coffee - it tasted ugly anyway.
  • sorry z71, but zues does have a point.

    You can turn down anything and everything but some fees a dealership just won't mess with.

    Why kill yourself over a $400 ad fee. Say a dealer down the lot tells you they will do it for 350, and give you 400 over invoice? you pay more. Best way to deal is an OTD price as zues suggests. Boom, 21,960OTD is much better than 22,960 OTD. Who cares how they got to it, you are still financing XXX, and the dealer did what they had to to make it pan out.

    Had a dealer give me a great trade on my car, but MSRP on the new one. Other was average on car, but $400 over invoice on new one, difference in OTD? about $1500. I don't care how they get to it, all I'm worried about is the bottom line. If car X and Y have the exact same options, add ons, etc. what's the best overall price I can get it for. If you have your financing preapproved as a fallback, you shouldn't have any problems with 15% for 72mo.

    As I have recommended before, before you go into any dealership, have your ducks lined up. Financing, trade info, new car info, warranty, etc. much easier to deal.
  • z71billz71bill Posts: 2,000
    How do you determine a good out the door price without looking at the details?

    What do you base it on?

    If one dealer gives you $21,960 and the second says $22,960 - yes dealer one has a better price - but are you getting a good deal? You don't know.

    Zue - your just say no answer really supports my point, negotiate everything - don't just accept a fee / charge.

    Maybe it is just my style, but just saying -

    Your out the door price is to high - lower it - does not work for me. I have better luck using a more detailed approach. I have bought several vehicles for below invoice, with no add on fees. Several more at $100 - $300 over invoice - with no add on fees. I even bought one car for $500 under invoice minus holdback. Again no ad, doc or any other fees. How is this possible if they are not negotiable?

    One last point -I always treat the salesperson with respect.
  • jlflemmonsjlflemmons Posts: 2,240
    On an '04 Yukon invoiced in the San Antonio Texas area, as well as the Austin Metro area, GM adds on a line item of 2% MSRP for advertising. This is part of the invoice the dealer must pay. I raised a stink over it until the sales manager came in and told me I could pick any invoice from any dealer in any metro area of Texas, and I would find the same line item at the bottom of the invoice and it would be for 2% of the MSRP less freight. And I don't even LIKE their commercials.

    Jim
  • The way I look at it, an OTD price factors in lic, reg, tax, doc fee, add-ons, etc...

    If the car is identical(lets say an '04 Accord EX V6 non Navi in Satin Silver), and one dealer offers you 24,990 while second dealer offers you 25,990 IMO, unless dealer 2 dropped in a warranty, add-ons, or some other pack item, I don't really care how much I am paying for doc fees. granted, it is possible to negotiate and spend time 'grinding' dealer 2, why waste time if the price is fair? ... Say you are getting the car for $100 over invoice, how much more can you possibly save, and how long will it take you to get it? Say you 'grind' dealer 2, and get them to go down to 24,940... takes say 3 hours... that's like paying yourself about 16/hour. not worth my time.

    Of course it's just my opinion, and to each their own.
  • raprap Posts: 9
    I don't really mean to rehash this topic again, but can someone please explain the advertising fee to me? Is it something that dealers will always include in their "invoice" price and how much is it exactly for a Limited 4X4?

    I have searched the forum, and gotten mixed info suggesting it is anywhere from $300 to $500. I spoke with one dealer recently, and he insisted that "EVERY" dealer would include this in their invoice price. However, the invoice price he quoted me would lead me to assume the advertising fee is in the neighborhood of $800. I know that the Edmunds invoice price does not include this fee ... Should it?

    Can someone please elaborate? Thanks.

    RAP
  • bobstbobst Posts: 1,783
    Don't even think about the advertising fee.

    Start with the Edmunds invoice price, add on a couple hundred dollars, and add on the transportation cost. Then add on sales tax and a fee for tag/title ($50 in VA) to get an OTD price. See if they will accept that offer.

    If not, then increase your offer. Keep increasing it until a dealer accepts it.

    Of course, if there are dealer incentives or rebates for the car you want to buy, you should adjust your OTD offer accordingly.
  • Greetings RAP. I always tell consumers to look at the big picture when shopping for a new vehicle. Focus on the total price that you want to pay to drive off in the car or truck that you are interested in. This number is often called the out-the-door price. Doing so will prevent dealers from clouding the picture by trying to tack on all sorts of random fees. Afterall, it doesn't matter how your vehicle's price is broken down if you are spending the least amount of money possible for it. Do some research on the model that you want here at Edmunds.com. You should be able to get a good idea of what people are paying for it right now by looking up its Edmunds.com True Market Value in the New Vehicle Pricing section of this site, looking up the incentives that are currently available on it in the Incentives section of this site, and by visiting by the appropriate discussion on the Prices Paid & Buying Experiences Message Board that appears here in the Town Hall. Once you have calculated an out-the-door price for the model that you want, shop around for price quotes from several local dealers and purchase from the one that offers you the lowest price, provided you feel comfortable with them.

    Car_man
    Host
    Smart Shopper Message Board
  • dbgindydbgindy Posts: 351
    CarMan is dead on. Find the model you want with the options you want and strive for an OTD ( out the door) price that works for both you and the dealer. They can break it down however they like as long as the OTD works for you...

    Duncan
  • rroyce10rroyce10 Posts: 9,359
    ....... But .... like Bobst recommends, that ad fee has to be charged, the dealer pays it and it does have to be passed on, it's a cost the manufacturer drops on the dealer, especially now with the fall sales blitz thats on tv 28 times a day and it should run "around" $175 ..

                             Terry.
  • scott31scott31 Posts: 280
    What would the proper advertising fee be on a Hyundai Tiburon SE in the DC metro area? Dealer claims it is $500 which I think is total BS.

    Thanks.
  • mirthmirth Posts: 1,212
    Like these folks are saying, forget about the fee. Figure out the max you're willing to pay for the car, out-the-door (OTD) including everything - tax, title, license, doc fee, cleaning fee, owner's mistress fee, whatever. Start with an offer about $500 below that and work you're way up. If you want to start at Edmund's invoice plus tax and no fees, go ahead. The dealer probably won't accept it, but at least you've got a starting point. But you have to figure out for yourself the max you're willing to go. You can do that by looking at TMV and reading the Hyundai forums. It just makes life easier than arguing with the salesperson over whether one fee or another is "valid".
  • Kirstie_HKirstie_H Posts: 10,810
    It makes life easier, but some people like to know what they're paying for which items - cost of the car, fees, taxes. I like to aim for TMV or slightly lower, plus reasonable fees. Everyone has a different negotiating style that suits him/her, so if OTD only is your bag, then go for it!

    kirstie_h
    Roving Host & Future Vehicles Host

    MODERATOR
    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.
    Share your vehicle reviews

  • mirthmirth Posts: 1,212
    Well, in a way you're doing an itemized OTD, lol. You've predetermined what you think a reasonable fee is, so if the dealer's fees are $200 higher than that they'll have to lower the price on the car to earn your business.
  • scott31scott31 Posts: 280
    I'd really like to know what the actual fee is. The dealer showed me an "invoice" with $500 on it, which I think is total BS. Would like to know one way or the other.
  • danf1danf1 Posts: 935
    Assuming you are looking at a GT Tiburon, 500 seems accurate. I'm in pittsburgh and I know this can vary by region, but my GTs have advertising of 500, my 4cyls have advertising of 471.
  • scott31scott31 Posts: 280
    Wow, that shocks the heck out of me, that's more than 2% of the MSRP.
  • danf1danf1 Posts: 935
    It is. I guess we don't distinguish whether it is high or not because as a dealer it is not negotiable with the manufacturer.
This discussion has been closed.