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Cadillac Forums: $889 advertising fee?
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Old 01-30-08, 07:52 AM
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Re: $889 advertising fee?

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Is the advertising cost added if you are buying under GMS supplier program?
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  #32 (permalink)  
Old 01-30-08, 10:41 AM
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Re: $889 advertising fee?

Quote:
Originally Posted by lsleelee View Post
Couldn't decide if it was better to resurrect a dead thread or start a duplicate thread, so I decided to resurrect.

To clarify this whole "is the $889 LMG/Advertising fee included in the invoice" "well there's more than one invoice" issues :

I've got MSRP of $35045 and Invoice of $32767 from Edmunds. Do these numbers include the LMG/Advertising fee?
No. Those are straight (well, close) numbers direct from GM, and have no bearing on what actual dealer fees and final prices there are.

If, as most do, you go to a dealer that participates in the advertising, they're charged a % of MSRP for that on every new car they get and it's baked right into the invoice. Does NOT show up in the MSRP, but is an amount over the dealer invoice.

So, essentially, the MSRP won't be different, but if one dealer has ad fees and another does not, the second will have a lower invoice on the car than the first because of the fee. This factors in when people start dealing...and wonder why one dealer seems to have a price above the other, particularly when doing an $xx over invoice deal.

Quote:
Originally Posted by MoFex View Post
caddygirl,

so you confirmed my statement. It is included in dealer invoice and MSRP. So if we negotiated a price with the dealer les't say $X above the invoice and then suddenly he is adding the advertising fee it is a profit maker as it already been included in invoice....
It may depend on how they do it. If it's an in stock car, it's there and is already a part of the invoice--with it's own little section. If it's an order, I'm not sure if it shows up immediately with the invoice price they get, or something that shows up later in the build and they calculate it based on the % there for you.

Or, could just be how it's explained. "This is the invoice (bare), and then the ad fee is this"...basically breaking it down for you. Ask to see the invoice, or a complete breakdown, and it should all be pretty clear.

Quote:
Originally Posted by BobZ06 View Post
Is the advertising cost added if you are buying under GMS supplier program?
I'm fairly sure that ad fees are erased from GMS (employee level) pricing, but still included with Supplier. Not 100%, though.
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  #33 (permalink)  
Old 01-30-08, 11:20 AM
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Re: $889 advertising fee?

I paid the edmunds price, nothing extra. No trade, so they couldn't ding me on trade-in value. Salesman and I openly discussed the holdback. Told me that they also make profit on volume. BTW, love the car!
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