View Full Version : Dealer Advertising fees


C6Vette
05-27-08, 10:06 PM
Hey guys, I'm looking to buy a 2009 CTS. I am trying to get as close to invoice as possible so I can use my GM card earnings. The dealer states that GM supplier is less than their invoice because of the Dealer Advertising fee. Is this BS or am I stuck with this fee? Please advice quickly as I may put the deposit down tomorrow.
Thanks.

figgie
05-27-08, 10:55 PM
during negotiation any thing is up to negotiation :) Just how much are you willing to negotiate is the question. I myself, walked out of no less 12 dealerships when they would not budge $50. I am a hard ball player though :)

caddycruiser
05-27-08, 11:01 PM
It is NOT BS. People everywhere commonly think it is, but the advertising fee is built into the cost of the car almost like an option/feature or the destination charge. Most every dealer (a very select few don't) participate in the system with GM where there is a % of MSRP charge per vehicle they get that is paid into a central advertising bank. Pays for GM sponsored commercials, print ads, etc. in the local region.

So, yes, it is a real, valid charge that is right on the invoice, charged to the dealer like any other thing with a vehicle, and then passed on to you. Talks of getting around it or not being charged it are bunk, as it is not a dealer-specific made up fee or such, unless you just get a greater discount in general.

Hope that clears it up! I'm very close with many in the dealer business (especially GM), and advertising fees are one thing that people constantly question and even when explained, often refuse to believe are real. But they are, very much so, for the reasons said above.

Otherwise, good luck shopping!

C&C
05-28-08, 06:28 AM
When you're buying a car; if you are happy with the price and the dealer is willing to take your price, it doesn't matter what they label what (as far as fees). But, if you arrive at a price, and then at the table they start adding fees and add ons, then it's time to either 'walk' or tell them that wasn't part of the deal. When negotiating, before you sign, get the out the door price (that's the one that you have to be happy with).

lordbaby
05-28-08, 06:39 AM
negotiate the final price, compare the number with others to see whether it is a necessary fee. hit it as low as possible. don't rush.. you are rushing now. take your time. you better clear up ALL your questions before you put down the deposit. no rush

louiefl99
05-28-08, 01:15 PM
Not sure if you can combine GM Card Earnings with Supplier Pricing unless you have the old GM Card. Supplier is 1.5% above invoice, but you do not pay the advertising fee. On a $40K invoice car, Supplier is $600 over. If you are able to negotiate down to invoice without supplier pricing, pay the advertising fee, and then get the GM Card earnings it might be a better deal than supplier and no GM card.

I second getting an out-the-door price, it will simplify matters.

muschany
05-28-08, 01:22 PM
If you have the old GM Card, you cannot combine the earnings with Supplier Pricing.

figgie
05-28-08, 02:30 PM
It is NOT BS. People everywhere commonly think it is, but the advertising fee is built into the cost of the car almost like an option/feature or the destination charge. Most every dealer (a very select few don't) participate in the system with GM where there is a % of MSRP charge per vehicle they get that is paid into a central advertising bank. Pays for GM sponsored commercials, print ads, etc. in the local region.

So, yes, it is a real, valid charge that is right on the invoice, charged to the dealer like any other thing with a vehicle, and then passed on to you. Talks of getting around it or not being charged it are bunk, as it is not a dealer-specific made up fee or such, unless you just get a greater discount in general.

Hope that clears it up! I'm very close with many in the dealer business (especially GM), and advertising fees are one thing that people constantly question and even when explained, often refuse to believe are real. But they are, very much so, for the reasons said above.

Otherwise, good luck shopping!

lol

you will be surprised to know what dealers will do to lock a sale to get thier "status" from GM and KEEPING it for 10 years +. It is a pretty hefty bonus for them so nixing $600 to gain a heck of a lot more is a no brainer ;)

caddycruiser
05-28-08, 09:57 PM
lol

you will be surprised to know what dealers will do to lock a sale to get thier "status" from GM and KEEPING it for 10 years +. It is a pretty hefty bonus for them so nixing $600 to gain a heck of a lot more is a no brainer ;)

Of course, but they aren't really eliminating that fee directly...they're just cutting more out of the price in general.

The advertising fee, on the invoice, is NOT something the dealer ads, it is there from the get go from GM and they pay it in buying the car. Other things like doc fees, admin fees, etc. are dealer crud, but those are a different ballpark. Pretty much every dealer participates in the advertising system and thus is charged the fees, but there are a random few out there that don't.

So they can scrimp and cut more off the price in general (to an extent) and theoretically get rid of some of the extra amount, in your mind, that is that ad fee...but it remains there in every way, truly.

C6Vette
05-29-08, 12:27 AM
Thanks guys. So today I had a discussion with the dealer. They said they'd put in an order for invoice plus the advertising fee. The problem is they don't know the prices yet so they'll just record it on the form. Should I agree with this? I guess I should ask what other charges could be applied. I assume anything on top of this would apply to both invoice and GM supplier ie: tax, registration? Is there any other hidden charges I should be aware of? I want to place the order but also want the best deal within a few hundred. What are your thoughts?

lordbaby
05-29-08, 05:42 AM
oh well the ads fees are always there.. they are in 2 categories (i forgot the name, but we have already discussed this here long time ago) that 2 fees add up over 1000 to me.. but i could care less because i negotiated the final price with them, not term by term negotiation. Tax and registration are extra and fixed by Government and DMV.

figgie
05-29-08, 01:38 PM
Thanks guys. So today I had a discussion with the dealer. They said they'd put in an order for invoice plus the advertising fee. The problem is they don't know the prices yet so they'll just record it on the form. Should I agree with this?

Think about it this way, that form is actually a CONTRACT. If the dealer puts say $1,000,000 after you sign it, guess what you are on the hook for regardless of what the "verbal" was? Paper is always mightier than the word especially in a court of law.

Blank contracts should never ever be signed. EVER!

Zymurgy
05-29-08, 02:39 PM
Think about it this way, that form is actually a CONTRACT. If the dealer puts say $1,000,000 after you sign it, guess what you are on the hook for regardless of what the "verbal" was? Paper is always mightier than the word especially in a court of law.

Blank contracts should never ever be signed. EVER!

Actually, the "contract" should state something to the effect that the price will be dealer invoice price in effect at the time the order is accepted by GM plus the agreed upon advertising fee. The dealer invoice price is a fairly public number and will avoid the situation figgie mentions. The dealer should be willing to show you the actual invoice from GM as soon as the car is billed by GM to the dealer (this happens about the same time as the car is shipped from the factory).

Cadillac Tony
05-29-08, 03:28 PM
Don't get hung up on what fees you are or aren't paying- agree on an out-the-door price. If you leave a deposit to order a car, have the Manager write on the purchase order that the deposit is refundable if the final price on the 09 is not acceptable to the customer (you).

Contrary to popular belief, a buyer's order isn't a binding contract until you take delivery of the car. If they specifically mark the deposit NON-REFUNDABLE on the paper then you will lose that, but you are under no obligation to take the car.

jjsC6
05-29-08, 05:32 PM
lol

you will be surprised to know what dealers will do to lock a sale to get thier "status" from GM and KEEPING it for 10 years +. It is a pretty hefty bonus for them so nixing $600 to gain a heck of a lot more is a no brainer ;)

Would you mind "decoding" what you said here? Dealers are in business to sell and service cars in order to make a profit. Like most businesses, they do what they can to maximize profits. Is that what you mean by "get their "Status"" and "hefty bonus"?

lordbaby
05-29-08, 05:46 PM
Think about it this way, that form is actually a CONTRACT. If the dealer puts say $1,000,000 after you sign it, guess what you are on the hook for regardless of what the "verbal" was? Paper is always mightier than the word especially in a court of law.

Blank contracts should never ever be signed. EVER!


the dealer bs. the ads fee is a fixed % or a set price. not such thing as dont know yet.

a hand shake deal is as good as writing when you do it right.

C6Vette
05-29-08, 05:51 PM
Well I placed the order. The buyers order says Invoice + dealer advertising + destination + $75 processing fee. I decreased the processing fee from 400 to 75. They also wrote on the order "Deposit is fully refundable" I made it very clear that I wasn't entirely comfortable with all the variables and so he said if for any reason you aren't happy with what we get you can cancel the order or order another. He was very good about it. Now I can't wait.

Zymurgy
05-29-08, 05:54 PM
the dealer bs. the ads fee is a fixed % or a set price. not such thing as dont know yet.

a hand shake deal is as good as writing when you do it right.

No bs. What they don't know yet is the "Invoice Price" because 2009 prices have not been released yet. So, there certainly is such a thing as "don't know yet".

lordbaby
05-29-08, 08:39 PM
No bs. What they don't know yet is the "Invoice Price" because 2009 prices have not been released yet. So, there certainly is such a thing as "don't know yet".


so i guess you can bs around that you never any ads about 2009 CTS on the market, they should charge nothing. j/k

hey for 2009, why bother so much? if the dealer cant provide you any data but disclose everything, and you disregard his suggestion and go on and purchase.. you can only blame yourself when related shit happens. The thing is, you dont have to take deliver if you want to risk. There is many possible outcome, but the question remain simple - BUY, DON'T BUY OR WAIT. A smart one will wait.