Dealer pricing invoice + advertising costs!?

[WOT]

I've been hunting for a new truck and I have had 2 dealer tell me they will go to invoice + advertising costs? What the heck gives there! If only Tommygun had a truck in stock for me! Guess I'll keep looking. Anyone else here of this gimmic?

 

[klenger]

I've always had to pay the advertising. It is a real cost to the dealer.

 

[WOT]

I guess I'm thinking that should come out of the dealer holdback. Also, most advertising a dealer does is geared towards cars, so why should I pay an equal share of the advertising cost... (yeah, I'm cheap )

 

[Vaughn MacKenzie]

I grumbled and posted about the same thing back in '03 when I was working hard on a deal for my truck, but pretty much found out that's one expense you're stuck with paying. Vaughn

 

[DBond]

What I found was many dealers were eager to order at invoice. Below invoice was harder to get, but possible.



The invoice pricing I pulled off Edmunds didn't have advertising in it, but the invoice every dealer printed out included 2 line items for advertising.



My point is, don't let them double charge you for advertising, by tacking their own charge on top of what Dodge puts in the invoice.

 

[Tim]

If you pay over invoice, you paid too much.



I paid 3% under invoice + all applicable rebates.

 

[hammersley]

And if you would see what the Gov't Pays for these rigs -

YOU would be amazed!!!!!!!!! They are so much below what dealer's cost is - well you would think you're buying in a different timeframe... . NO BS - There is a HUGE Difference!

 

[Buffalo]

I, also, have heard that the advertising cost is a legitimate cost that needs to be passed on to the customer.



The thing I don't understand is that I can't think of anything I purchase that the seller adds "advertising costs" on the invoice as an additional charge. Advertising costs are always included in the cost of the product that we purchase. When I owned my business, I was never able to add an additional charge for advertising, or anything else, for that matter. My customers would have revolted had I tried anything that sneaky to make an extra profit. My charges were up front and had to include everything. Occasionally, I would have an across the board price increase to cover the additional expenses I had incurred manufacturing the product the customers were buying. Basically, passing-on to the customer the extra expense involved in manufacturing the product. My cost increases were still governed by competition.



Have any of you had to pay additional costs for advertising for anything you have purchased, in the past? Other than vehicles, of course.



I was at a Mitsubishi dealer, yesterday, and they have a car sith a wing on the back called an "Evolution", I believe. They had an extra charge called "Added Market Value" which, was basically $4,990. 00 additional profit to the dealer. Plus, they had added "exterior and interior protection packages" which, carried a huge cost. These extra charges added $8,000. 00 to the cost of the car.



For that matter, when I bought my '03 Dodge, one of the dealers here in Phoenix had an additional "Added Market Value" charge of $3,990. 00. They "double-teamed" the customer with two salesmen chasing you around the lot. I told them there was no way that I would pay a penny of that charge and they immediately agreed to drop it. I asked them why they do that and they said that you would be surprised how many people are so intimidated by the car buying process and just pay whatever the invoice says. I didn't buy from that dealer!



Joe F. (Buffalo)

 

[ohnoitsyu]

The other reason for the "Added Market Value" charge is that customers often feel really good about negotiating to not paying that overy-inflated added charge (and often feeling quite happy to pay retail! )



Lee

 

[milehigh.o.]

I just bought my '05 with the affiliates program discount I get thru work and the dealer's I made deals with both had the added cost for advertising. I called BS on that :-{} and then it was on the invoice that they showed me along with my affiliates pricing. I tried, but there was no way out of it. I guess if more then 1 dealer is showing the same advetising prices then it must be legit for them to charge it.



I don't recall these charges when I bought my 03 and 04. 5 Rams. Is this new and across the nation?

 

[FATCAT]

If you order a new truck (never been on their lot, they never had to pay a dime to the bank for the loan), why would you have to pay "Advertising cost" for something they never had to begin with?

 

[Jaysyl]

ohnoitsyu, welcome to TDR. Dealers here in vegas have the market vaule add on. Sticker in window says 43000 then the add on is 4000 more. It is not worth the time to sit down and talk to the sales person. So Two weeks ago we took the 7 hour flight to Dave Smith, then 17 hour drive back . Time well spent going to Idaho, saved 13500 over the price in Las vegas. Had a nice drive home with the wife and no kids.

 

[DBond]

If you order a new truck (never been on their lot, they never had to pay a dime to the bank for the loan), why would you have to pay "Advertising cost" for something they never had to begin with?

I am not happy paying for advertising either, but as I understnd it the charge on the invoice goes to Dodge for the corporate advertising fund, not to the dealer. Then Dodge makes TV commercials that say "mayor of truckville... see your local Dodge dealer" You might see such a commercial and it might get you to stop at your Dodge dealer and place an factory order.



I think the reason it is listed on the dealer invoice is because the amount Dodge spends can vary some from one region to another.



I think all the talk about advertising misses the point, if you want a good deal, negotiate for the lowest $ out the door, period. If I can buy the truck for $100 with $29,000 of advertising charges, I'd be happy.

 

[RMachida]

ohnoitsyu, welcome to TDR. Dealers here in vegas have the market vaule add on. Sticker in window says 43000 then the add on is 4000 more. It is not worth the time to sit down and talk to the sales person. So Two weeks ago we took the 7 hour flight to Dave Smith, then 17 hour drive back . Time well spent going to Idaho, saved 13500 over the price in Las vegas. Had a nice drive home with the wife and no kids.

Ditto in Alaska. The local dealer adds on "market value" to suggested list and that is the starting point for any deals. I had a very nice, relaxing drive home from Dave Smith (2300 miles).

 

[BRayls]

never paid it , never will.

 

[surfbeetle]

Back in '95 when I bought my 95, I had been to several dealers in the San Diego area. The worst experience was the loss leader experience I had at the dodge dealer in La Mesa, I got sucked in by a "loss leader" ad. Then they did the bait and switch, stating that the truck we had just test drove was the "wrong" one. How could it be the wrong one, the damn thing didn't have a spare tire or bumper, it was definetly the loss leader. Then the SLT and ST trucks had a $7000 dealer added markup on it. I ended up buying a truck in Poway for 3k under msrp. I also wrote a letter to DMV complaining about their business practices at the dealer in La Mesa. I eventually got a call from the DMV investigator stating the dealer was apologetic and would sell me a truck at the Loss leader price if I hadn't already bought one. Yeah, they just said that to cover themselves. Never pay full price!

 

[WOT]

I finally found 2 dealers willing to "deal" here in Ohio. One said 1. 5% below and was sticking with it until they figured out I was going to the other dealer that went 3% below without any haggling. The second dealer had a truck with better options so I went with it. The first dealer should have said ok to 3% immediately and I would have stopped looking and would have never called the other dealer - their wanting that extra $600 cost them in the end.



So, need to update my sig with my new truck: 3500 Dually, 6spd, 4x4, black/slate grey, leather seats.



Oh, I did end up paying the $470 for the advertising/zone charge (it was actually listed on the invoice). Didn't have the time to argue it down (sounds like I may not have been able to anyway).

 

[RJOL]

I am not happy paying for advertising either, but as I understnd it the charge on the invoice goes to Dodge for the corporate advertising fund, not to the dealer. Then Dodge makes TV commercials that say "mayor of truckville... see your local Dodge dealer" You might see such a commercial and it might get you to stop at your Dodge dealer and place an factory order.



I think the reason it is listed on the dealer invoice is because the amount Dodge spends can vary some from one region to another.

This is exactly correct. The charge you see on the invoice is the charge that Chrysler adds for its national/regional advertising. Most dealers will try to add on their own advertising/lot cost/ etc. to the invoice but you should not have to pay a penny of this if you are ordering a new vehicle. They have no additional cost if you pick up your vehicle as soon as it gets there. If you buy one off their lot, they may have a case for adding this in, but everything is negotiable. There was no charge like this when I picked up my 2005 from Dave Smith Motors, and I don't think they every add it into their sales. Have fun...

 

[Cattletrkr]

So, some of you actually think you're paying less for your truck than the dealer did??? OK, whatever. Yeah yeah, they showed you the invoice. Whatever. Shop around, find a price you're happy with, and don't fall for the dealer BS games. Below invoice, $100 over invoice. Yeah, that's how they stay in business.

 

[RJOL]

So, some of you actually think you're paying less for your truck than the dealer did??? OK, whatever. Yeah yeah, they showed you the invoice. Whatever. Shop around, find a price you're happy with, and don't fall for the dealer BS games. Below invoice, $100 over invoice. Yeah, that's how they stay in business.

I think most of us have been around long enough to realize that the dealer has other incentives that he gets when he sells a vehicle. The point of comparing sales to dealer invoice is that invoice is a base number that is the same for every dealer. I bought my 2005 for $4500 under dealer invoice. Do you really think that I don't realize that the dealer made a profit from other incentives? You must have really got hosed to be so negative...