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Old 01-24-2011, 08:23 PM   #29
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Originally Posted by oldfriend View Post
WHAT kind of crap is that , is like you go to your local butcher and e says the beef today goes for $12 LB and then there is 34.9 cents per lb for ads on your local paper ,what is this coming from????
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Old 01-24-2011, 09:41 PM   #30
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Yes you pay this, the advertising is a percentage of the vehicle and options. Dealer ad groups/regions will have their own percentages. These can vary from 1 or 1.5% up into the 3 or 3.5%. The doc fee however is the dealers choice and they can charge nothing or as much as they want. If you don't want to pay this then you can go to another dealer. If a dealer gets caught charging a doc fee to some customers and waiving it for others they can be sued because of discrimination. Hope this helps explain the ad fee's, they are real and are paid every time you buy a new car.
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Old 01-25-2011, 08:53 AM   #31
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The advertising fees are included on the dealer invoice printouts, but I always subtract them off during negotiations. The dealer is reimbursed for advertising by GM, so they're just profit padding. The last five cars I've bought were all at prices below invoice after advertising was subtracted off.

I always use Edmunds.com, because they show invoice pricing w/o advertising fees tacked on. Dealers will always argue that they are legitimate costs but IMO they are not.
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Old 01-26-2011, 02:57 PM   #32
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The invoice price includes 3% in holdbacks also. True vehicle cost for the dealer would be roughly 97% of invoice. Dealers can also receive ad credits from manufacturers.

http://www.edmunds.com/car-buying/dealer-holdback/
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