Well, it's just about time to buy the new truck. I'm fairly good at the dealing process and have ordered my last three trucks at mostly the $$$ that I intended when I walked into the dealership. For the most part I know what's a real cost and what is dealership BS.

But, one thing I am not sure about is the dealership claim to having a fixed cost to GM for advertising. Usually a figure of around $400 to $600 or so. When I've been dealing up from invoice in the past this "GM advertising fee" gets tossed into the mix with the dealer standing firm that it was a fixed fee that they could not move on. IIRC, this was only on my last purchase in '01, not on the earlier trucks I bought ('96 and '94). My question: Is this just another BS cost or is it a real cost to the dealer that is not shown on the invoice?

I'm calling BS.
A place I was looking at for a suburban had it but it was about 1600. I told them no thanks. I do not see "why" they need to advertise my truck, being it will be on the lot for delivery and make-ready, then I'm taking it.

If I can remember correctlly...when I ordered my '04 in Oct '03, 'they' explained that the fee was for the advertising the a group of local dealers use.

But, the fees were different counties. In King County (WA) it was X, then north in Snohomish County (WA) it was less.

I tried to not have to pay it, but it seemed to be a lot like the transportation cost...no way out.

The more I write this I can't seem it make much sense, hope it does to you.

Bill

If I can remember correctlly...when I ordered my '04 in Oct '03, 'they' explained that the fee was for the advertising the a group of local dealers use.

But, the fees were different counties. In King County (WA) it was X, then north in Snohomish County (WA) it was less.

I tried to not have to pay it, but it seemed to be a lot like the transportation cost...no way out.

The more I write this I can't seem it make much sense, hope it does to you.

Bill


They do it around here and it varies by region. Sometimes it can mean the difference of a few hundred from County to County. I have never seen it spelled out on any truck I have ordered or gotten under GM discount.

Scott

So has anybody ever gotten the dealer to back off the ad fee? So far, all my experience with it has been met with a "We can't do anything about the fees as they come straight from GM" from the dealer.

While I want to get my best deal I also want the dealer to make a profit. At the same time, it's common dealer practice to add in "mandatory" fees that are basically BS (things like undercoating, fabric protection etc.) so I'd like to know enough about it to call BS when I see it.

So has anybody ever gotten the dealer to back off the ad fee? So far, all my experience with it has been met with a "We can't do anything about the fees as they come straight from GM" from the dealer.

While I want to get my best deal I also want the dealer to make a profit. At the same time, it's common dealer practice to add in "mandatory" fees that are basically BS (things like undercoating, fabric protection etc.) so I'd like to know enough about it to call BS when I see it.

I think they have made a pact of sorts among themsleves that its not negotiable, sort of like "holdback money".
It never hurts to ask though.

I have refused to pay it and have had it removed in one case and cut in half on another. It is fraud — they may as well add the electrical bill and sewer fees, too. some dealers don't participate in the GM ad campaign and you don't even face the issue. As I suggested elsewhere, start your offer at invoice, i.e., 88% of MSRP less your GM card and applicable rebartes. Threaten to walk if they start the funny money games — ad fees, dealer prep, documentation fee of more than $75, sales person commision, etc.

Not bs I have heard that from many dealers that again like stated above it goes by groups.

I used to order all the trucks for a small midwest Chevrolet dealer, and saw all of the actual invoices from GM.

Advertising is legit. Each marketing group has their own advertising arrangement. Most share the fee by charging a per vehicle charge, so the dealers who sell the most pay the highest fees. The Generic GM advertising that you see on local media is paid for by the fees. The reason it varies by area is that different groups have different rules. As far as I know, all GM dealerships are required to participate as part of their agreement with GM. Many just eat the fee from their profit.

All that said, it doesn't mean that you, the customer have to pay it. It is a cost of doing business for the dealer. The store that I worked for made very little on the sale of new cars. Most income came from used car sales, Finance and insurance, and the shop. Dealerships now are engaged in more and more ventures to generate income, Tire sales, aftermarket products, rental cars, leasing, and on and on. I wouldn't worry too much about whether they make any on your new truck, or not. I assure you that the dealer will insure that they don't lose any.

I have refused to pay it and have had it removed in one case and cut in half on another. It is fraud — they may as well add the electrical bill and sewer fees, too. some dealers don't participate in the GM ad campaign and you don't even face the issue. As I suggested elsewhere, start your offer at invoice, i.e., 88% of MSRP less your GM card and applicable rebartes. Threaten to walk if they start the funny money games — ad fees, dealer prep, documentation fee of more than $75, sales person commision, etc.

It's not fraud. It's what GM charges the dealers for all the TV ads you see and the nice color brochures etc. The fee varies by region as not every region gets the same advertising. In my area it's 2%. I found a truck in another region where it was only 1%, so that represents about a $500 savings.

Advertising is, indeed, legitimate — and essential. So are all of the other acivities that a dealer engages in. Those result in costs that the dealer, who is not engaged in a charitable activity, must recoup to make a profit and stay in business. And that shows up in what the dealer ultimately sells the vehicle for. Adding the advertyising costs is no different than adding the other costs of doing business (like taxes, the utility bill, etc.) — though it is now treated as though it is something different and the buyer must pay it (like dealer prep or inflated document fees). There is a great deal of manipulation and "fraud" in the vehicle sales business. Once that is acknowledged, good dealers can be separated from those who are not — and then the customer can make a choice as to where to do business. And there are very good, honest, and efficient dealers out there.

My retired fleet buddy said it is legit. I did negotiate with the dealer on my new LMM that they would remove the advertising $ if they stuck a dealer decal on my new truck. My new truck does NOT have dealer decal.

That seems to make my point — they were willing to trade the advertising cost for a sticker! As a part of the invoice, the advertising fee is a choice made by the dealer to let GM handle that part of his work — which he would otherwise have to handle on his own and pay for (like utilities and taxes). Buuuut, unlike utilities and taxes, the advertising can pay off. If the dealer is efficient and the ads help to sell lots of vehicles, the real ad cost per vehicle actually goes down as his profits go up. Even more, if GM did not do the ads, and the dealer did a bad job of it, both the dealer and GM would suffer. My whine is simply this, why should an inefficient (likely dishonest) dealer be guaranteed his cost for advertising plus a profit? Just post the MSRP and let the dealers compete. Stop adding wiggle room for the dealer to play with — and making it appear as though it is written in stone (because it isn't).

OK, but when I went to order a truck that fee was NOT there till I decided to build the truck, AND they said the could do invoice (that's when the 1800$ add fee came into play)

I did not buy because of that (kinda glad I waited though)