Dealer Advertising Adjustment

AngelPhoenix · June 23, 2023

Apparently, this is a thing that most dealers are charged by GM in order to have their dealerships advertised through various means. The dealership is apparently passing along this cost to the customer.

I've been able to get a few local dealers down to an offer of invoice +$750 (probably the best I'm gonna do in this market), but the first one to give me a hard OTD price had a $1500 "Dealer Advertising Adjustment" tacked onto the base invoice. Sound like a bunch of crap to you? Even if it's "legit" why the hell do I need to indirectly hand GM $1500 for their car commercials?

Z45 · June 24, 2023

Its legit and voluntary for the dealers and the cost (to the dealer) varies by geographic location. Everything you buy has advertising cost figured into the price. Just like there is no such thing as 'Free Shipping", the price is adjusted to account for the free shipping...

Silverado4x4 · June 24, 2023

elcamino is right, dealers have been doing this for as far back as I can remember and as said everything has ad cost into the price of the item not just dealers. And yes there is no such thing as Free Shipping its added to the price of the item for example a 100 dollar item says free shipping and another place will have the same item for 90 dollars with 10 dollar shipping, people see free shipping and think they're getting something for free but there not the item is just more expensive.

AngelPhoenix · June 25, 2023

Bought my Ram 1500 at invoice, no advertising adjustment attached.

I'd much rather just add a few more options to the truck to make the base invoice price higher. Or hell, I'd even be fine with the salesman I've been working with (who's been great) get that money. GM sure as hell doesn't need it, they make $10K+ per truck as it is…record profits overall past couple of years, unless I am missing something.

64BAwagon · June 25, 2023

I trust anything a dealer tells me about as much as the cleanliness of a public restroom.

KARNUT · June 25, 2023

In reality it doesn’t matter what charges are on there. Weird charges are on any bill. What matters is the bottom line and how it compares with the competition. Same as buying a used vehicle. All the paperwork and car fax tells a story that only shows the past. Then you take a chance. My last used vehicle purchase the Avalanche. That vehicle was the most documented used vehicle I ever bought. Car fax and detailed maintenance records. It’s so clean the new car dealership had it on its use car lot. A cream puff. I get it home and shortly after it rains. The carpet is wet. Water is dripping above me. The sun roof drains are plugged and the removable center glass seal is bad. I don’t believe it was outside or driven in the rain. Next surprise I take a 1K round trip. The low coolant light comes on. Turns out it has heads that get small cracks. I add bars leak and watch oil, good so far. The original owner probably knew about that. Next as the weather warms the AC doesn’t work well. Bad oring easy fix. I’m now going towards 4 years ownership. No more problems I got my money’s worth. That ultimately is the game, getting your money’s worth.

diyer2 · June 25, 2023

Anything is worth what someone will pay for it. Avoiding bad goods is the big challenge, whatever it is and any purchase is a roll of the dice.

Z45 · June 25, 2023

Friend just bought his wife a 2023 Furd Maverick and it's on the invoice and furd calls it an "Acquistion Fee".

AngelPhoenix · June 26, 2023

Just annoying that it seemed to come out of nowhere. Guy tells me "invoice +$750", that's what I expected it to be. The amount is less the issue than the principal. If he had told me about it when he first presented the offer I'd probably feel at least somewhat differently about it. Now I can only wonder what else he isn't telling me.

All that being said, Ford dealers are in outer space, I could only get a decent back-and-forth going with two and then couldn't get some key items ordered that I wanted. And then Ram's invoice prices are higher than Chevy/GMC and Ford MSPRs so they're out.

I'm not brand-loyal at all, I just want the best truck I can get for the best price I can get it at and this market and these dealers SUCK right now.

KARNUT · June 26, 2023

The Ford and Ram dealerships around me are filled back up and the ads are like pre COVID. The Chevy and GMC dealerships aren’t. Makes me wonder if they’re playing games. I don’t cruise the lots like I used to I’m just not interested. That’s so unlike me. I’m more interested in a 10 year old cream puff. The new stuff I’m just not feeling it.

Z45 · June 26, 2023

There is a Advertising fee but dealer are also charging a (paperwork) processing fee which many states allow. I seen some as much as $500+, basically they are charging you to take your money.

Quote

The “doc fee” covers the cost of preparing and filing all the paperwork. Some states set limits on the doc fee — California caps it at $85 — but other states have no limit. In Florida, the median doc fee is $895.

64BAwagon · June 26, 2023

Around here the Doc fee is about $240. Its essentially a defacto tax increase since the Secretary of state (DMV) pushed all the plate and registration work off on the dealer. They collect their sales tax and their other fees and essentially do nothing.

AngelPhoenix · June 26, 2023

2 hours ago, KARNUT said:

The Ford and Ram dealerships around me are filled back up and the ads are like pre COVID. The Chevy and GMC dealerships aren’t. Makes me wonder if they’re playing games. I don’t cruise the lots like I used to I’m just not interested. That’s so unlike me. I’m more interested in a 10 year old cream puff. The new stuff I’m just not feeling it.

Well, Ford lots may be filling back up, but it's with F150's and other stuff. Superduty's are still a hot item.

And Ram is filling back up because they're essentially in last place as far as powertrain options and interior and exterior updates, and yet they're charging the most

So I figured I had myself down to Chevy/GMC, and the only GMC HD's I like are the AT4 (except brown interior highlight color, ew) and the Denali Ultimate, which is out of my price range. So Chevy it is. That is, if I can actually get the truck I want (with the currently restricted Z71 Sport Package) at a price that seems fair to me.

Starting to think I should have waited a year but GM finally mating the 10-Speed to the 6.6 gas got me all excited lol

nards444 · June 26, 2023

Nothing brand specific here. Dealers always trying to add in "mandatory pricing items." The reality is they buy a car from GM/Ford/dodge for x price and then sell it to you, which frankly they can sell it for what they want.

This is how I play dealers and suggest others do as well. Keep in mind while the market is swinging back to the buyers it's still not what it was yet.

1. If you are dead loyal to a dealer, you are dead wrong, you should at least price check them. I buy a new vehicle every 2-3 years from different places and the same local dealer happily services them.

2. There is a not a large profit margin on new vehicles, depending on what it is you could be talking a few hundred bucks(chevy cruz) or a few thousand in a truck or suburban. Dealer then has over head, salesman etc. They make their money on trades and service. So dont be the buyer that comes in expecting 20k off.

3. Dont shop at a dealer that wont give you the build sheet/invoice. That is a fair practice, that way we all know where to start

4. In a normal market invoice pricing is not a good deal, those spouting they got invoice you got ripped in a normal market.

5. Incentives and promotions are usually on top of what you already negotiated or are separate. You sometimes have to mix and match these based on your situation. But usually they are not negotiable, so dont be that guy on these and ask for more off

6. Watch dealer added line items. Paint protection, scotch guard, tint, locked wheel lugs, and yes extended warranties(which if you do the math on these its dumb to get these up front) you can get them later from the same dealer at the same price or even lower. Things like DOC fees and so forth, understand what they can legally charge by your state, no wiggle room on these usually and I usually dont bring these up if they are couple hundred bucks. More than that I would really question them. Ive had dealers go all out on some of these mandatory add ons, some people want which is fine. But I have gotten up and walked away because of some of them and they usually take them off.

7. When negotiating price. Understand where to start. If you have the GM discount its a done deal you get the discount plus incentives, thats it you are done. Employee discount is hard to beat, but you can beat the friends and family discount. No sense in playing games with employee discount, friends and family I suggest getting the best price and then saying what if I could get friends and family and see what they say.

If you are a normal joe you want to get invoice pricing from them. Take MSRP and multiply by 3% to get holdover. Then subtract that number from invoice, that is what they paid for the vehicle and is the wiggle room. Example; truck cost $100, hold over is $3 and invoice is $93. They paid $90. You negotiate to start to pay $90 then add incentives on top of that. You could start lower, then 90 but going to be tough.

However you do it, you can always throw in oil changes, car washes or even have them throw in warranties and such as well. There are also hidden factory incentives out there they wont tell you, ive come to find, sometimes you just get lucky and they apply those, or you picked a car on the lot they wanted gone.

Few last truths to keep in mind

1. Incentives are factory skin, dont let a dealer make you think they are doing it for you, some will some wont.

2. End of the month can be a better time to get a few bucks more. This thought is over played though specially for high volume dealers. You might get lucky and get a few bucks from the salesmen that has to make his number

3. You will always be able to better negotiate on lot cars vs special orders, it makes sense. But dont expect to see a huge difference. Lot cars can be advantageous if they have sat for a while, as the dealer typically doesn't buy with cash, they are most times on a loan from the factory and they are paying interest to keep them. This is where hidden incentives come in

4. Don't get unrealistic ideas from guys "deals" on the internet. I got 10% off invoice, no they didn't.

5. Cash doesnt matter, chances being they dont want your cash and youll have to write a check anyways. Most prefer a loan anyways as they get points (money) for every loan they sell. Most dealers Ive worked will actually throw me a few hundred bucks for their points. So dont be the cash guy. When in price talks never tell them which way you are paying until you get a final price or feel like your getting close. And no you dont need to see my DL or run my credit until we decide on a number or a final price is hinging off my credit score. Also keep in mind some dealers wont want their time wasted on 80k trucks with a guy that cant afford half of that.

Edited June 26, 2023 by nards444

KARNUT · June 26, 2023

48 minutes ago, AngelPhoenix said:

Well, Ford lots may be filling back up, but it's with F150's and other stuff. Superduty's are still a hot item.

And Ram is filling back up because they're essentially in last place as far as powertrain options and interior and exterior updates, and yet they're charging the most

So I figured I had myself down to Chevy/GMC, and the only GMC HD's I like are the AT4 (except brown interior highlight color, ew) and the Denali Ultimate, which is out of my price range. So Chevy it is. That is, if I can actually get the truck I want (with the currently restricted Z71 Sport Package) at a price that seems fair to me.

Starting to think I should have waited a year but GM finally mating the 10-Speed to the 6.6 gas got me all excited lol

Rams are the sales leader here with discounts. My brother is on his fourth. 3 are still at his shop. The oldest over 200K miles. Our local dealership has lifetime warranty. The last one I owned was a 2009 2 door V-8 it was a blast. My favorite is of course my avalanche. Depending on price if I stumble on a 2 door 5.0 Ford pickup I will drive it. The most bad ass truck is the TRX. My old business head foreman has one. It’s been flawless for a year. My nephew and the head salesman drive Raptors. All I can say GM where’s the beef?