$889 advertising fee?

[Nashtyboy]

Did anyone else who has ordered/bought an 08 CTS have to pay a $889 advertising fee? I received a quote for an order I'm about to make from one of my local dealers and it had Car price + Tax + Dest charge + Advertising fee. Considering this amount is basically another 2% of profit for GM or the dealer, I'm suspicious of it. Did everyone have to pay this?

[hanapa]

I did not see that fee when I ordered mine last week. Sounds like extra profit on a hot car.

[greyghost04]

That's profit right to the dealer. I'd just get another quote from another dealer. Never accept one quote from one dealer as your purchase point.

[Zymurgy]

Dealers can participate in a co-op advertising program with GM. If they do participate, then they are invoiced by GM for every car they get. Simply find a dealer that does not participate in the co-op advertising program and you will not see the advertising fee.

[PAO]

Originally Posted by Zymurgy

Dealers can participate in a co-op advertising program with GM. If they do participate, then they are invoiced by GM for every car they get. Simply find a dealer that does not participate in the co-op advertising program and you will not see the advertising fee.

I have yet to find a dealer that doesnt participate in the program...as was mentioned its charged directly to the dealer from GM...is generally 2-3% of the total MSRP price.....and covered in what is given as the dealer invoice.....from what I have f0und...

you can find it as a negotiable item as well....as well as dealer processing fees.....in my area alone I have found processing fees ranging from $99 to $599......now that is pure profit....

best deals Im seeing are 800-1000 over invoice at the moment....and I have no GM discounts

[Nashtyboy]

This dealer is offering me 1% over invoice + $889 advertising + $199 "documentation fee", which to me ends up simply being a little over 3% above invoice, i.e. about $1500.

[928S]

If it's not included on the original manufacturer's window sticker, THEN DO NOT AGREE TO PAY IT - it's a negotiable dealer add-on item. It matters NOT if the dealer does or does not participate in co-op advertising. That's the dealer's problem, not yours. Just like other expenses of operating the dealership, regardless of the vendor or method of billing.

[LFG]

I have NEVER paid this on any car or truck I bought, and I paid invoice for our 08' CTS. One dealer wanted to charge it and I told them to "stick it". We orderd the car and paid invoice. Hey if I go and buy a washing machine, they don't make me pay advertising fees, it's total BS.

[Pucks]

Originally Posted by LFG

I have NEVER paid this on any car or truck I bought, and I paid invoice for our 08' CTS. One dealer wanted to charge it and I told them to "stick it". We orderd the car and paid invoice. Hey if I go and buy a washing machine, they don't make me pay advertising fees, it's total BS.

True enough on the washing machine...but you can bet that the cost of the machine already includes the advertising and any other SG&A costs that the company needs to turn a profit on that item.

[Cadillac Tony]

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.

[Mplsspyder]

The other thing is what kind of local marketing group the dealer is in. It can be anywhere from 1/2% to 2% of the invoice price. Like has been quoted it is a price the dealer has to pay to GM for advertising.

[LFG]

Originally Posted by Pucks

True enough on the washing machine...but you can bet that the cost of the machine already includes the advertising and any other SG&A costs that the company needs to turn a profit on that item.

I priced the car on Edmunds & Cars.com for the invoice and this is what I paid, no BS. If the advertising was in the invoice....so be it, but don't add it on after we get to the bottom line of the deal. I can live without the car, so they knew were I was coming from. $45,250 MS $40,950 invoice, done deal......Plus tax & tags.

[dkozloski]

It seems kind of stupid to be charging an advertising fee for a car that the customers are knocking down the doors to buy. Trying to attach a particular advertising fee to a particular car sounds like some particularly creative BS. The customer always has the option of walking away and going to another dealer. I haven't bought a car from a local dealer in years. I make the best deal I can with a dealer that'll deal.

[Jschmank]

Dealer "hold backs" are also not on the sticker but work to the dealer's advantage. On the CTS I understand this is 3% that goes back to the dealer. So if the invoice doesn't include the extra advertising fees the dealer may have to pay, it also doesn't include the holdback that goes back to the dealer.

[taccadillacforums]

Originally Posted by LFG

I priced the car on Edmunds & Cars.com for the invoice and this is what I paid, no BS. If the advertising was in the invoice....so be it, but don't add it on after we get to the bottom line of the deal. I can live without the car, so they knew were I was coming from. $45,250 MS $40,950 invoice, done deal......Plus tax & tags.

Car buyers love (trustfully) edmunds, Cars, Kelly, etc., but dealers (trickfully) hate them.

Guess what? Once, I was told by a saleman that edmunds' invoice price was wrong.

Yes, because I like the car, so I was closing my eyes hoping to have a good deal for it, and I was really glad to pay just a littler over $1,500 above invoice ($500 above invoice acorrding to the saleman).

When it got closer and closer to the real deal, the Sub Total, Oh man!...I was totally freaked out...fee, fee, fee,...charge, charge, charge,... "we want more...charges." I guess you are already know what I'm saying.

That's it folks. Thanks for reading my comedy(?).

My best wishes to you.