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Old 11-07-07, 03:18 PM
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Cadillac(s): 2004 CTS-V
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Location: Leesburg, Florida
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Re: $889 advertising fee?

Just to clear things up a bit:

Some Dealers have an "Administration Fee", which covers costs of doing paperwork and business and allows them to sell cars at or close to Invoice while still being profitable. The $199 charge you mentioned is that fee, and some Dealers will back it out of the price of the car. Down here in FL most Cadillac Dealers have an Admin fee between $600 and $800.

"Advertising (or LMG and LAM) Costs" are (as Zymurgy pointed out) actual costs charged to the Dealer by GM to have their name and phone number included in the National Print ads that GM runs in Newspapers and TV. The money MUST be paid to GM, and you'll have a hard time finding a Dealer willing to lose $900 to sell you a car, especially a hot one like the CTS. This is not an "added item", but part of the Dealer's actual cost on the car.

This is one of the reasons I hate Edmunds "invoice" pricing- because my actual invoice includes approximately $900 of LMG fees, and they don't show it on their web site, thus creating unrealistic expectations.
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Tony Pagano
Plaza Cadillac
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