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Take a look at this invoice. v.Denali


ktreece

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So I was about to close the deal on a denali today but the dealer started throwing some fees at me that I wasn't familiar with. What is your take on it?

 

Admin Fee : 399 (Says it's a state law. Googling results disagree)

Dealer IMR Contribution : 270.45 My local dealer does not have this

LMA Group Contribution: 540.90 My local Dealer does not have this either

 

 

Are these just red flag fees for a shiesty dealership, or what? Also, they couldn't get to invoice they said they were 500 above.

 

Is this not stuff that should be negotiable?

 

 

needless to say, I walked away when all these "state mandated" fees started rolling in. Sure, it's little money compared to the big picture, but I am not going to put up with these last minute "oh throw me a little extra money here" fees.

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Oh, and why is the Offroad Suspension package only 224 on there when on the website it's 405?

 

Not to change directions of the thread, but my Denali order printout has the Z71 listed at $255.

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Not to change directions of the thread, but my Denali order printout has the Z71 listed at $255.

Maybe because their website includes more than just suspension and it's still added in there?

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I ordered everything but the rear seat entertainment package. I also specified All Terrain tires that were a $200 upgrade...don't know if that any anything to do with it or not.

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Wow. I wish that I had answer for you. I'm going to be trading in 2011 Sierra 2500 for 2014 Sierra 1500 that I had ordered about three weeks ago. I'm hoping the dealer will not change the numbering on the invoice, incentives are very good this month and work out to my advantage. I hope you get back to us with the results of your possible purchase.

 

Opps sorry about hitting return key twice, still learning about this awesome site...

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I think they are all fee’s that they sneak in the deal! I may be wrong but everyone makes money off commission was my understanding. The sales, the managers, the service guys who always seem to tell you that you need a new in cabin air filter because they don’t remember telling you that the past 50 times, to the finance guy for doing all the paperwork!

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So I was about to close the deal on a denali today but the dealer started throwing some fees at me that I wasn't familiar with. What is your take on it?

 

Admin Fee : 399 (Says it's a state law. Googling results disagree)

Dealer IMR Contribution : 270.45 My local dealer does not have this

LMA Group Contribution: 540.90 My local Dealer does not have this either

 

 

Are these just red flag fees for a shiesty dealership, or what? Also, they couldn't get to invoice they said they were 500 above.

 

Is this not stuff that should be negotiable?

 

 

needless to say, I walked away when all these "state mandated" fees started rolling in. Sure, it's little money compared to the big picture, but I am not going to put up with these last minute "oh throw me a little extra money here" fees.

There are a lot of good dealers that don't pile on BS like that. I'm not an expert but in the West most if not all charge a Doc/Admin fee as high as $599. They use the story that they can't waive it because of State laws...probably true but I've had it waived once. Bottom line is it's just a way of advertising a lower price and then adding fees to increase net profit. Another good one is "Dealer Markup" added to MSRP...because the factory markup is insufficient.

The "out the door" price is what's important but if you don't have a situation where you can compare pricing then I'd get on the phone and call a larger dealer or two as close geographically as possible. Personally I don't care for dealers that play those games so I would have walked also.

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IMR and LMA are group advertising fees that the dealer pays to the manufacturer. Not all dealers participate but most do. It's not additional profit for the dealer, it goes directly back to GM to fund local and regional advertising.

 

You don't say what state you are in but many regulate what the dealer can and can't charge for prep, doc or other fees. Here in FL the law says, if you charge a dealer fee to one person you MUST charge the same fee to everyone. Most FL dealers charge between $400 - $900 in "dealer fees".

 

The only way you get out of paying those fees is by using employee or supplier pricing, most local laws allow for that as an exception. It's the same for the LMA and IMR fees, GM waives those fees to the dealer under these programs so you don't pay it.

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As for the documentation fee, my dealer in Texas charges $149 for every car sold. This fee pays the salaries of the workers who file your sales tax, and pay the license plate office. Might seem like a frivolous fee, but this dealer is the 2nd largest in Texas. No big deal.

 

As for the advertising contributions, those fees are never waived. Even for me, as I have purchased 6 cars from here. Basically, when you see a GM commercial that says " brought to you buy your north Texas Chevy dealers," or wherever your location, the advertising fee pays for this TV time.

 

Where you have some lead way is the holdback. Your $55k truck has $1600 of hidden money. I was able to get my dealer to meet me half way on my deal. So $750 behind invoice was my out the door price.

 

As for supplier or employee pricing, some of the current rebates do not qualify under these programs. I take invoice, minus half of hold back plus current rebates.

 

In summation, your deal isn't bad, but you have negotiating room. Especially if a trade is involved that the dealer is going to make money on. The finance guy is going to get paid if he arranges your financing, or if you do gap, credit life, or a GMPP.

 

Keep grinding,

 

Will

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IMR and LMA are group advertising fees that the dealer pays to the manufacturer. Not all dealers participate but most do. It's not additional profit for the dealer, it goes directly back to GM to fund local and regional advertising.

 

You don't say what state you are in but many regulate what the dealer can and can't charge for prep, doc or other fees. Here in FL the law says, if you charge a dealer fee to one person you MUST charge the same fee to everyone. Most FL dealers charge between $400 - $900 in "dealer fees".

 

The only way you get out of paying those fees is by using employee or supplier pricing, most local laws allow for that as an exception. It's the same for the LMA and IMR fees, GM waives those fees to the dealer under these programs so you don't pay it.

 

 

Interesting...

 

Why is this interesting? Because I have supplier discounts that she knows I had, but never mentioned that. I'll do some calling in the morning.

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Interesting...

 

Why is this interesting? Because I have supplier discounts that she knows I had, but never mentioned that. I'll do some calling in the morning.

Well, if you are using supplier pricing then you are looking at the wrong side of the invoice. Supplier pricing is on the right, it's the price you start from then subtract all incentives, including factory to dealer that you won't find on car sites.

 

I just bought a Silverado LT with a $36860 MSRP for $30765 + $75 program fee. $34265 - $3500 on various rebates and incentives.

 

$1000 customer cash

$500 package incentive (not the $750 package discount, that was already factored into the MSRP)

$1000 trade-in assistance

$1000 GMS cash

 

Remember, this was 1 month ago and rebates are regional.

 

I made out ok, didn't pay any of the advertising fees and the dealer will get their holdback plus a small stipend. Oh, and I didn't have to pay the $699 dealer fee that everyone else pays (or at least sees it on their sales order, I know you can get out without paying it but the dealer has to take it off the top first under FL law)

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As for the documentation fee, my dealer in Texas charges $149 for every car sold. This fee pays the salaries of the workers who file your sales tax, and pay the license plate office. Might seem like a frivolous fee, but this dealer is the 2nd largest in Texas. No big deal.

As for the advertising contributions, those fees are never waived. Even for me, as I have purchased 6 cars from here. Basically, when you see a GM commercial that says " brought to you buy your north Texas Chevy dealers," or wherever your location, the advertising fee pays for this TV time.

Where you have some lead way is the holdback. Your $55k truck has $1600 of hidden money. I was able to get my dealer to meet me half way on my deal. So $750 behind invoice was my out the door price.

As for supplier or employee pricing, some of the current rebates do not qualify under these programs. I take invoice, minus half of hold back plus current rebates.

In summation, your deal isn't bad, but you have negotiating room. Especially if a trade is involved that the dealer is going to make money on. The finance guy is going to get paid if he arranges your financing, or if you do gap, credit life, or a GMPP.

Keep grinding,

Will

So, I wonder how dealers stay in business making all of $800 on a $55000 sale? Car sales has to be about the worst margin business in the world. And don't go on about how they make it up in service or used sales, it's still a pitiful margin, one that no other business is willing to operate under.

 

I guess what I'm trying to say is if the dealer is willing to go that low there's other money in bonuses and such we never know about. Or said another way, MSRP and Invoice are just smoke screens.

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Those fees are highly typical especially with a retail operation. Meaning any dealership that has a big lot, signage, and service shop will likely have those fees. They are all manufacturer fees that you'll see coast to coast across every manufacturer. I know there are exceptions.

 

Don't worry about the dealership making money. They are doing just fine! They make a good portion of their profit revenue off of volume of transactions. This is not calculated into any individual deal. They also make their greatest revenue and profit off.... SERVICE. After market products and installation is also a huge profit area.

 

That is how it ws explained to me by a guy who runs a group if AutoNation locations.

 

Edit -

 

They also almost never loose money on any used car transaction. It is not unheard of for them to literally flip a vehicle and make $2k the next day. It really ones down to aggregation of revenue across the parts of the dealership.

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