Last post on Apr 17, 2008 at 2:41 PM
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What is this discussion about?
Dec 04, 1997 (10:27 pm)
I was wrestling with a Mistibushi dealer today
(smacking him around with my Edmunds-provided
information) and he countered with the following:
Edmunds doesn't account for a variety of dealer
costs like advertising fee (3% of base invoice px),
sales promo fee ($100 per vehicle), and dealer
flooring assistance (1% of base invoice). I gotta
admit, I don't recall hearing or reading about
these charges. What's the deal...are these charges
legit or have dealers invented them to counter the
information that consumers now have?
#2 of 594 verchoe
Dec 05, 1997 (4:51 pm)
I am not an expert but boy does that deal smell bad! They want an additional 4% +$100 over whatever deal you finally negotiate. What a crock! Run and run fast. A toyota dealer here advertised corolla LE's at .89% over invoice. No additional dealer fees or advert fees. These all sound like a way to make you feel like you have no choice but to pay their fees. You ALWAYS have a choice and they can always get rid of the fees. They may not want to make a sale that bad but they could drop the fees if they wanted to.
Also don't feel bad about cutting dealer profit to a minimum especially on new cars. I read that a lot of dealers can actually run their new car sales department at a loss each year because their used car department and service departments have such huge yearly profits.
#3 of 594 advert
Dec 13, 1997 (6:14 am)
I am considering purchasing a new plymouth voyager. The dealer invoice lists two "advertisement" fees which they say are mandatory costs to the purchaser. Is this a legit cost or is it negotiable?
Dec 13, 1997 (2:32 pm)
From what I've read, and from Verchoe's response to my initial post, it appears that these costs are real. More specifically, they are costs that the dealers encounters to run their business. I'm convinced that these costs are now becoming part of the "sticker" because consumers have become so much better informed about car pricing. When the dealer was walkin away with a few thousand from each sale, they probably didn't see the need to explain all of the costs that make up their "overhead". Now that the buyer knows all about incentives, rebates and holdbacks, the dealers feel compelled to even the score by tacking on any cost they can possibly associate with the car. I feel very strongly about these costs, and I'll make every attempt to negotiate them. My feeling is that any cost the dealer incurred that actually added value to the car is a legitimate cost. Any cost related to their own overhead is not my problem. (Its the equivalent of me telling the dealer that I spent 25 hours researching new car information and prices. At my billable rate of $100 per hour, that entitles me to a $2500.00 price reduction on the car I purchase.)
#5 of 594 verchoe
Dec 29, 1997 (1:49 pm)
Exactly! Couldn't have said it better. Don't let them them tell you that those fees are "mandatory". Nothing is mandatory. They could sell the cars at less than invoice and waive the freight charge if they wanted to. They won't, but they could. Just approach it from the angle that EVERYTHING is negotiable. If you just accept that those fees are fixed and that you have to pay them , then you have given up that much bargaining room.
Dec 29, 1997 (4:29 pm)
I encountered the same thing with the advertising fees. I negotiated with the fleet manager to buy a Pontiac Grand Prix for $500 over invoice. He built up the car on his computer, and the invoice matched Edmund's EXACTLY, except for an extra $251 advertising fee, which is exactly 1% of the MSRP. He claimed that is a real cost to the dealer. I had negotiated with other dealers and none would even come close to the price I got. He told me that they have to pay Pontiac that fee. There were no other additional fees, and destination was included in the invoice. So I guess that in lieu of paying the advertising fee, I could have negotiated paying only $250 over invoice. But after doing a lot of research, I think I got the best deal possible. Even in the Edmund's fair price guidelines, they suggest including 1-3% for advertising on top of the 5% over dealer cost.
Jan 09, 1998 (12:56 am)
I got a Camry LE V6 only $250.00 over the invoice. The dealer invoice is same as Edmund Web site and added $350.00 the advertising cost.
I think I am happy with the deal.
#8 of 594 gwahl
Feb 12, 1998 (9:14 pm)
I have bought or helped buy 3 cars recently. Every deal included ad fees (1.2%). The cars were popular and the buyer was willing to pay it. If you don't want to pay it just say so, if they want to make the deal they will waive it, if not, shop around to other dealers. Don't take it personally, it's only business.
#9 of 594 alco
Mar 12, 1998 (7:10 pm)
My wife and I were going to order a Mercury Villager from the Ford dealership in Freeport, Ill., and were told they would sell us that vehicle at invoice. Well, when my wife went to place the order, they added a $250 advertising charge, which we balked at, and then walked out. We fretted for a while because we thought we made a wrong choice, only to buy a Windstar via Auto-By-Tel from a Madison, Wis., dealer for almost $500 under invoice, and no advertising fees. I look at advertising charges as just another way to bilk the consumer and refuse to pay them-even it means walking or buying a horse and buggy to get to work.
Apr 28, 1998 (12:00 pm)
I too refused to pay the $200.00 advertising fee at the Toyota dealer. He removed it from the price. I tried to convince him to remove the Holdback fees as well. I explained that these fees were given to the dealership by the Toyota corp. for selling the car. I asked why that should be a "charge" to me? He wouldn't budge on those.