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Bait & Switch and Other Bad Advertising Tactics

222 messages,  Last post on Sep 13, 2011 at 2:30 PM

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#183 of 222 ABC Nightly News reported on Costco recently by euphonium

Apr 06, 2010 (9:47 am)

and Diane Sawyer was surprised to learn you could buy a new car from Costco due to selected local dealers with wholesale pricing.

#184 of 222 Invoice Sale! by jipster

Aug 06, 2010 (6:24 pm)

Saw this one in the paper today. "All new Mazda cars sold at invoice." They show the photo of an invoice statement. Everything looks good until you get to the bottom, under the invoice column, under transportation fee, there is something called a "Louisville Assessment" fee. This invoice price is $300, but there is nothing listed in the "Retail" column. Tack on anther $350 for doc. fee, and you're 3/4 of the way to MSRP. Booooo.... Hisssssss.

#185 of 222 Re: Invoice Sale! [jipster] by jwilliams2

Aug 06, 2010 (8:04 pm)

Replying to: jipster (Aug 06, 2010 6:24 pm)
Probably a legitimate adv charge to the dealer from the manufacturer if it is on the invoice. It is a part of his cost.

#186 of 222 Re: Invoice Sale! [jwilliams2] by jipster

Aug 07, 2010 (7:54 am)

Replying to: jwilliams2 (Aug 06, 2010 8:04 pm)
Why so deceptive then? "Louisville Assesment", sounds to have a whole different meaning than anything connected to a advertising fee. Sorry, sounds like b.s to me.

#187 of 222 Re: Invoice Sale! [jipster] by fezo

Aug 07, 2010 (8:26 am)

Replying to: jipster (Aug 07, 2010 7:54 am)
Absolutely. Besides "All new Mazda cars sold at invoice." sounds pretty clear to me. If he means invoice plus whatever funny fees he wishes to invent he should say this.

#188 of 222 Everyone says... by kyfdx HOST

Aug 07, 2010 (10:05 am)

...negotiate from invoice, not MSRP...
 
But, the MSRP (Monroney sticker) is a constant... Invoice can mean whatever the dealer wants it to mean..
 
In the example above, the "Louisville assessment" is, most likely, an actual legitimate advertising fee on the factory invoice... Which is why I make all my offers in USDollars.... not on invoice +, or MSRP -
 
And, above all... realize that advertising is meant to sell cars... not an honesty test... lol..

#189 of 222 Re: Invoice Sale! [jipster] by jwilliams2

Aug 07, 2010 (10:26 am)

Replying to: jipster (Aug 07, 2010 7:54 am)
If it is a charge the dealer adds, then it is a BS fee. If it is on the actual invoice from the manufacturer, it is a legitimate charge the dealer pays and is part of his cost. Not so hard to understand. Most manufacturers show this as a regional fee, and it varies around the country in what it's called and the amount.
 
The brand I sold had a $500 regional fee included on our invoices, while some other parts of the country had from $200 to $600. It is part of the actual invoice which the dealer pays if he wants the car. He has no choice. So probably nothing misleading or BS about it. It simply is money the manufacturer uses to pay for their regional advertising, which the dealer has no say in.
 
People should keep in mind that as kyfdx says the MSRP is constant, while the invoice can vary around the country. And sorry, but to ask "Why so deceptive then?" simply shows a lack of understanding of how the car manufacturer's do business.
 
So if a dealer advertises "cars sold at invoice", the charge should be included, as it is part of his invoice. Nothing more, nothing less.

#190 of 222 Re: Invoice Sale! [jwilliams2] by fezo

Aug 07, 2010 (11:04 am)

Replying to: jwilliams2 (Aug 07, 2010 10:26 am)
And sorry, but to ask "Why so deceptive then?" simply shows a lack of understanding of how the car manufacturer's do business.
 
No, it shows an understanding that car manufacturers do business is a very deceptive way. That's hardly a secret.

#191 of 222 Re: Invoice Sale! [jwilliams2] by jipster

Aug 07, 2010 (11:30 am)

Replying to: jwilliams2 (Aug 07, 2010 10:26 am)
If it is a charge the dealer adds, then it is a BS fee
 
Doc. fees come from the dealer, so you're saying they too are B.S fees. I'll agree with that. I'd say anything over $50 is probably bogus..

#192 of 222 Re: Invoice Sale! [fezo] by jwilliams2

Aug 07, 2010 (11:40 am)

Replying to: fezo (Aug 07, 2010 11:04 am)
No, it shows an understanding that car manufacturers do business is a very deceptive way. That's hardly a secret.
 
Absolutely nothing deceptive about it from the manufacturer. Now the add on fees by the dealer (i.e. doc fees) are deceptive if the dealer hides it from the buyer and springs it in F&I. Not really deceptive if it is disclosed up front on the buyers order, although I don't like them either. I've always focused on the bottom line OTD price.

Messages Page 20 of 23

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