New truck Advertising assessment

[jelisfc]

So I'm two hours into ordering my '03 2500HD CC.  The last thing left is money down.  The deal is 500.00 over invoice.  I ask the salesman to show me the invoice price to make sure we are both talking the same number.  It's $600.00 more than I expect!!!!!  Next to the last line is "Advertising assessment" for $593.00.  The dealer's story is GM adds this money to every GMC truck in the Minneapolis/St. Paul metro to cover corporate advertising.  I told him to make it go away or I will.  Well here I sit with no truck on order highly annoyed...not as much as the Sales Manager though.

 

Has anyone heard of this?  I know invoice is 12.5% off list which was correct on their sheet except for this up charge.

[jcilufo]

The key is to go in and say "I want the OUT-THE-DOOR price. If there are any surprise fees and #&$% at the time of signing papers I walk."

 

I went through that. I used the GM Buypower website to find THE truck I wanted with the options I wanted and was willing to travel anywhere in the state of Florida to buy it at the dealer that had it. I didn't want some bubble-gum-chewing teenie-bopper driving my new vehicle 90 MPH for hours during the break-in period.

 

The perfect truck turned out to only be 1.5 hours away. I called the internet salesman and told him I want the "out-the-door" price and he gives me a number. After 2 trips up there to see it/buy it, I'm reading the papers and finding these fees like dealer prep fee and others. I was not happy. Then when I was asking and trying to have him clarify what this stuff was, my girlfriend said the "Internet Sales Manager" was rolling his eyes behind my back! I'm spending $32,000 on a vehicle not $.32 for a pack of gum-I'm being cautious!

 

I could go on and on about my very disappointing transaction but as for your question:

 

Mine was supposed to be $200 over invoice. I went to Kelley Blue Book (www.kbb.com) website and put in all the options that mine had and the invoice amount that KBB gave me was almost $1000 less! I printed it out and brought that to the paper signing. He had his excuses of course. I understand they won't be the same, but $1000 difference?!?!?

 

Unfortunately I was already geared up to buy and wanted to get it over with but if you're in a better position to be prepared to walk away then check it out.

 

GOOD LUCK

[gmcjoe]

So I'm two hours into ordering my '03 2500HD CC.  The last thing left is money down.  The deal is 500.00 over invoice.  I ask the salesman to show me the invoice price to make sure we are both talking the same number.  It's $600.00 more than I expect!!!!!  Next to the last line is "Advertising assessment" for $593.00.  The dealer's story is GM adds this money to every GMC truck in the Minneapolis/St. Paul metro to cover corporate advertising.  I told him to make it go away or I will.  Well here I sit with no truck on order highly annoyed...not as much as the Sales Manager though.

 

Has anyone heard of this?  I know invoice is 12.5% off list which was correct on their sheet except for this up charge.

That is a new one??  Did you call other dealers in the area and ask about that additional charge?

 

Sounds like B.S. to me...

[MarkD]

I dealt with the same thing when I bought my '02.  I got so irritated that I left.  I went back a week later and sat down with the Dealership's General Manager and we hashed out a deal that I was satisfied with.  It was not what I had hoped for, but pretty close.  I don't think I could have gotten the deal I did dealing with another dealer and a flunky salesperson.

 

I was kinda trapped too.  The way the deal went down was the GM ended up writing a number down and that number is what I paid.

[jelisfc]

This is on a brand new '03 I want need to order because I want a 6 spd.  After the deal broke the Sales Manager came over and explained the situation which I was OK with but I stuck to my guns and explained I'm paying 300 more for the GMC vs an identical Chevy, paying you 400 more than the chevy dealer, now you want me to pay an additional 600 for advertising?  For $1300 I'll buy a chevy.  I was strictly business with no emotion.  Then the sales manager gets annoyed and rants about how they pay higher costs to advertise yet the out-state dealers get the benefits blah, blah, blah.  At this point he lost my business period.  I'm 36 and there's nothing I hate worse than a member of management that is older than me being less than professional.  

 

I will be shopping around to other dealers but not until next week.  Even if I have to pay the extra 600 it won't be to them.

[MarkD]

Where are you located?

[RyanbabZ71]

rants about how they pay higher costs to advertise yet the out-state dealers get the benefits blah, blah, blah.

 

Its total BS.  I dont blame you for leaving.  I have even heard of people paying for prep fees (mandatory) which have been in the hundreds $$$.  

 

I paid -$500 invoice + destination charge and that was it.  The dealership i dealt with had no prep fees or advertising fees. They were scamming you.  Politely   and walk away

 

Hope you find a better dealer.  

 

are better anyways hehe

[jelisfc]

I'm in Stillwater Minnesota.  East of St. Paul on the MN/WI line.  I just find it amusing that for once I had the upper hand and all of the answers not the other way around.

[MarkD]

I just find it amusing that for once I had the upper hand and all of the answers not the other way around.

 

I know what you mean.  I have been fortunate to have the upper hand several times.  It really is a rough education when you get screwed by a dealer.

[conradv]

Mine was supposed to be $200 over invoice. I went to Kelley Blue Book (www.kbb.com) website and put in all the options that mine had and the invoice amount that KBB gave me was almost $1000 less! I printed it out and brought that to the paper signing. He had his excuses of course. I understand they won't be the same, but $1000 difference?!?!?

Yep - that's what they call a "modified invoice"  Says so right on the window invoice - dealers add in some money for the salesman, advertising, etc... and redo the invoice.  GM makes them put the note on the invoice.  There's a certain dealership in the Silver Valley of Idaho who has been known to do that....

[TxDoc]

It's a legitimate cost:

 

Why does the invoice at the dealership include a line item for "Advertising Costs" that does not appear on invoices supplied by 3rd party websites?

Here's how it is explained at Edmunds.Com:

 

"Most vehicle invoices include a legitimate advertising fee levied by either the manufacturer or regional dealer groups. Ad fees can range from less than 1 percent of the vehicle's MSRP to more than 3 percent, depending on region. Metropolitan-area dealers are more likely to charge higher advertising fees than rural dealers. When you comparison shop for a car, be sure to ask the dealers how much the advertising charge is on the vehicle."

 

To be more specific...

 

Local dealerships often have to pay a legitimate advertising fee to support advertising campaigns by the dealership groups. A share of this cost of doing business is added to the price of each vehicle on its invoice. Since this cost varies from region to region and dealership to dealership, it cannot be listed as a "specific" line item on "generic" invoice prices listed by online services such as Edmunds.Com, Kelley Blue Book, etc. So, when comparing local prices while shopping for a vehicle, be sure to ask about advertising charges included on the actual invoice.

 

 

 

 

 

 

Go to http://www.carbuyingtips.com/carintro.html

scroll down to :

How The Cash Flow Shell Game Works

 

 

http://www.carbuyingtips.com/scams.htm

 

Scam #10: Hide The Monroney (MSRP) Sticker Scam

 

How the scam works:  This is another new entry to our Top 10 list for 2001.  Sometimes the buyer will ask the car dealer where the Mulroney Sticker is.  This is the large white MSRP sticker that is required by law to be placed on every new car sold in America.  The sticker is placed on the passenger window at the factory by the manufacturer and should not be removed except by you the buyer.  It is a felony to sell a car without the Monroney Sticker.  Sometimes dealers will place it in the glove box for you.  But very few people foolishly do not check the Monroney sticker and verify that the car has all the options the buyer thinks they are getting. You should also verify that the VIN# on your dashboard matched the VIN# on the Monroney sticker so they cannot claim you are getting one car, when in reality you are getting another.  This usually happens when the car you want is not at the dealer you are shopping at, so they "locate it for you" from another dealer. There are so many complications that arise out of this scenario, that we recommend consumers avoid it.  Often times the dealers lie to the consumer and say they found the exact car with the options they wanted and are having the car delivered.  When the buyer shows up for the car, the Monroney sticker is either missing, or the dealer makes up excuses for why it's not on the car.  Had the consumer seen the Monroney sticker, they would have known that their options are not on the car and walked away.

 

How to avoid the scam:  Never ever buy a new car without the Monroney Sticker.  If they don't have it, don't buy it.  Never let a dealer "locate the car for you".  Always go to the dealer who has it and buy it from them.  Visit the web sites of your local and regional dealers and check their stock to find it yourself.  Why are people so stupid that they don't verify all their options are on the car until they get it home?  We'll never know.  Maybe in the euphoria of the moment their common sense turns off.

 

 

Bottom line is "knowledge is power".  If the dealer has more knowledge on the subject, you are at a disadvantage.  Researching a subject to understand how the game is played and what the rules are will help immensely.  Good luck on your purchase.

[Tucson_02Silverado]

I too ran against the $611 advertising alotment.  My deal was $500 under dealer invoice cost.  The dealer pulls the invoice sheet and shows me the bottom line price and subtracts $500.  I ask him what the $611 is, as it is that very amount that differs from the KELLY dealer invoice I had pulled.  He explains that GM builds that price in so the dealers do not have to do the math,  the amount is the projected average price per vehicle it takes to advertise in the area.  My next question was how long off the delivery truck has the truck been sitting on the lot.  2 days he says, as he shows on the invoice sheet, with one of those as prep he continues.  So I countered that the truck I'm wanting is stacked way in the back and not in the front area where others have baloons attached, that that particular truck didn't need to be advertised as I want it and it didn't require a baloon.  With some heing and a hawing I got the $611 off as well as my $500 under, especially when I pointed out that I know they still make 3% of the MSRP on the back side from GM.

[jelisfc]

Good news update.  I emailed a nearby dealer in Western Wisconsin.  He committed via email to $200.00 over invoice, (my calculated invoice)!!!  Unless something goes terribly wrong I'll have my '03 Dmax on order next week.

 

Tucson_02, I agree with you.  My biggest gripe is that I have to order the truck and no additional advertising is needed to get my business.  So why should I have to pay for it?  If I was buying off the lot I could except the additional advertising cost.

[RyanbabZ71]

WHat i like is how they charge you for ad fees then go on to put stickers and plates on your vehicle with thier dealership markings.  Luckily i didnt have that.  Maybe they should pay you for advertising?

[pacodiablo]

i hate those stupid logos they put on trunks/tailgates...they should pay you like $50 a month to have those on there