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Advertising Fees
594 messages, Last post on Apr 17, 2008 at 3:41 PM
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What is this discussion about? Car Buying
#575 of 594 lol zues by tblazer503
Oct 15, 2003 (2:25 am)
Replying to: rivertown (May 12, 2003 12:24 pm)
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.
#576 of 594 Zue and trail by z71bill
Oct 17, 2003 (8:44 pm)
Replying to: rivertown (May 12, 2003 12:24 pm)
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.
#577 of 594 Okay, I just fought this war tonight by jlflemmons
Nov 10, 2003 (10:06 pm)
Replying to: rivertown (May 12, 2003 12:24 pm)
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
#578 of 594 z71bill by tblazer503
Nov 11, 2003 (2:15 pm)
Replying to: rivertown (May 12, 2003 12:24 pm)
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.
#579 of 594 Advertising Fee by rap
Sep 17, 2004 (7:23 am)
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
#580 of 594 My advice by bobst
Sep 17, 2004 (8:27 am)
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.
#581 of 594 Re: Advertising Fee by Car_man HOST
Sep 17, 2004 (10:30 am)
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
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#582 of 594 Rap by dbgindy
Sep 17, 2004 (10:40 am)
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
#583 of 594 .. All true statements ..... by rroyce10
Sep 18, 2004 (4:50 am)
....... 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.
#584 of 594 Hyundai advertising fees by scott31
Oct 06, 2004 (11:29 am)
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.
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