Dealer Advertising on Invoice - yes or no?

[pmd67]

I was wondering if someone with inner knowledge of GM dealerships can explain the dealer advertising fee that appears on the GM dealer invoice and if it is negotiable or not.

The way I understand it, it is an amount that the dealer pays into its regional advertising group for TV, newspaper, and Internet adds, etc. So I would assume this advertising amount is different in every area.

Bottom line, if I do not pay it, is the dealer required to pay the fee back to the group anyways?

Reason I ask, is that one of the Chevy dealer I’m working with is willing to drop those fees (about $500) and offered to sell me a 2008 Malibu for “true invoice”. Since there are no rebates available on the 08 Malibu (yet), I’m wondering what he is up to and if I could negotiate these add fees at other GM dealerships. Thanks

[doh]

Talking Canadian here, but DMA (Dealer Marketing Assosiation) charge on the invoice is non negotiable. It is a per unit charge per vehicle for advertising. $500 seems REALLY HIGH, it is generally .25%

But there is WAP (Ford lingo) Wholesale Assitance Program, which helps with the Dealer's interest charges for 90 days. About 1.5% of invoice.

[tspax2]

There is a 4% holdback on msrp. ( on gm cars ) Buy it at invoice, pay points on the loan, $120 for $15 floor mats, $299 for a wax job ( paint protectant ), DO NOT BUY THE GM WARRANTY :>, BUY THE NO NAME BS ONE, tire insurance, pay twice what gap costs, and be happy. Multiply msrp by 89%, deduct rebates and offer them that, AND FINANCE AT YOUR CREDIT UNION. DID I MENTION? FINANCE AT YOUR CREDIT UNION .

[ChebbySalesDept]

Originally Posted by tspax2

There is a 4% holdback on msrp. ( on gm cars ) Buy it at invoice, pay points on the loan, $120 for $15 floor mats, $299 for a wax job ( paint protectant ), DO NOT BUY THE GM WARRANTY :>, BUY THE NO NAME BS ONE, tire insurance, pay twice what gap costs, and be happy. Multiply msrp by 89%, deduct rebates and offer them that, AND FINANCE AT YOUR CREDIT UNION. DID I MENTION? FINANCE AT YOUR CREDIT UNION .

Wow! You're good.

[Karch]

Originally Posted by tspax2

There is a 4% holdback on msrp. ( on gm cars ) Buy it at invoice, pay points on the loan, $120 for $15 floor mats, $299 for a wax job ( paint protectant ), DO NOT BUY THE GM WARRANTY :>, BUY THE NO NAME BS ONE, tire insurance, pay twice what gap costs, and be happy. Multiply msrp by 89%, deduct rebates and offer them that, AND FINANCE AT YOUR CREDIT UNION. DID I MENTION? FINANCE AT YOUR CREDIT UNION .

Does this holdback apply to SUV's (Trailblazer SS)?

Thanks.

[espo19047]

Originally Posted by Karch

Does this holdback apply to SUV's (Trailblazer SS)?

Thanks.

Do yourself a favor don't even mention hold back at the dealership. It is set aside for the over head of the store. You dont have a right to it.

If the Malibu is a few bucks under MSRP buy it. It is a great car and it is worth every penny...

The Trailblazer can be had for at least $4000. less then MSRP again great deal...

[caddycruiser]

Advertising is built into the invoice on vehicles at dealers who choose to participate in it (with different percentages, depending on the dealer) and it's not something to be negotiated.

Yet again, it seems a thread on this went off topic...but it is what it is.

Some dealers who opt into the program and it's on the invoice MAY negotiate it down/off in certain cases, but it's on there because they pay it and it goes towards different advertising sources...so it isn't likely.

Unless, that is, you find one of the few dealers (such as our local GM dealer) who has never chosen to opt into the program, and has zero ad fees. The only issue here is if they go through another dealer to get a car (i.e. locating what you want) and that dealer has ad fees, it's on the invoice, and they still have to keep it in the price. That was the case with the '08 Malibu we bought, which was a few hundred more than it would have been because of the ad fee of the originating dealer, than it would have if at our dealer all along.

[tspax2]

Originally Posted by espo19047

Do yourself a favor don't even mention hold back at the dealership. It is set aside for the over head of the store. You dont have a right to it.

If the Malibu is a few bucks under MSRP buy it. It is a great car and it is worth every penny...

The Trailblazer can be had for at least $4000. less then MSRP again great deal...

DO YOURSELF A FAVOR AND DON'T MENTION HOLDBACK ?!
Do the dealer a favor and give up 4%. That statement truly shows the attitude dealers have against informed consumers.

The holdback is on ALL cars.
A hot model is a lot more difficult to negotiate than a normal lump.
Just say no to the salesman, the sales mgr, and the GM. Get up and leave.Before you start your car they will cave.

It is a power game. You do it every few years. They play it every day.
When they go to the back, they are doing everything but helping you.
How hard do you work for $3k. Is it worth spending a little time and efoort not to let a dealer stress you ?

[espo19047]

Originally Posted by tspax2

DO YOURSELF A FAVOR AND DON'T MENTION HOLDBACK ?!
Do the dealer a favor and give up 4%. That statement truly shows the attitude dealers have against informed consumers.

The holdback is on ALL cars.
A hot model is a lot more difficult to negotiate than a normal lump.
Just say no to the salesman, the sales mgr, and the GM. Get up and leave.Before you start your car they will cave.

It is a power game. You do it every few years. They play it every day.
When they go to the back, they are doing everything but helping you.
How hard do you work for $3k. Is it worth spending a little time and efoort not to let a dealer stress you ?

Just because you know about holdback does not give you any right to it. What do you think is a fair price over dealer net? You claim to be fans of GM but without healthy dealers it is tough.
GM is making quality cars the free ride is over.

[caddycruiser]

Originally Posted by espo19047

Just because you know about holdback does not give you any right to it. What do you think is a fair price over dealer net? You claim to be fans of GM but without healthy dealers it is tough.
GM is making quality cars the free ride is over.

Exactly. I've been trying to say this on various forums, etc. for years...yet so many are still hardcore in the game of "I'm going to get every PENNY they possibly have between sticker and the absolute bottom they've paid for it."

Prices are now finally so in line, mostly, that anything between invoice and MSRP is a "good deal". Of course, some will also still sell below invoice, etc., but that's a case by case thing...and if the dealer sees fit, so be it.

Dealers have to make a few dollars occasionally, you know, to keep the lights on, the cars clean, the showrooms and service centers friendly and knowledgeable, etc. They can't do that with charity work.

So...with the offer of $200 over invoice for our '08 Malibu, I was for sure smitten. But even closer to MSRP, big deal...still a great deal.

Aside from a few vehicles, such as the still very highly priced Tahoes, Suburbans, etc., most vehicles anymore are far and away from the game of bargain store discounting.
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BUT...back to the advertising fees, which still FEW people seem to even remotely grasp

[pmd67]

Originally Posted by caddycruiser

Advertising is built into the invoice on vehicles at dealers who choose to participate in it (with different percentages, depending on the dealer) and it's not something to be negotiated.

Yet again, it seems a thread on this went off topic...but it is what it is.

Some dealers who opt into the program and it's on the invoice MAY negotiate it down/off in certain cases, but it's on there because they pay it and it goes towards different advertising sources...so it isn't likely.

Unless, that is, you find one of the few dealers (such as our local GM dealer) who has never chosen to opt into the program, and has zero ad fees. The only issue here is if they go through another dealer to get a car (i.e. locating what you want) and that dealer has ad fees, it's on the invoice, and they still have to keep it in the price. That was the case with the '08 Malibu we bought, which was a few hundred more than it would have been because of the ad fee of the originating dealer, than it would have if at our dealer all along.

Thanks Caddy

I totally understand holdback, but dealer advertising has always been a mystery to me. I believe I know what the dealer paid for this car (I have some data from DealerWorld) and he showed me the invoice on it, so I have an idea what his “holdback” is. I’m not interested in touching that, they have their bills to pay too. This Malibu was part of a dealer trade from a dealer that participates in the advertising group, thus advertising was on the invoice.

I was quoted an under invoice price on this 08 Malibu and the dealer add fees were taken off as well. Sounds too good to be true for a 08 Malibu, so I’m suspect.

Now all I have to do is sell my wife on this car now as she will be the primary driver on it.

[sonjaab]

Its funny...........In my area of Syracuse NY a used car dealer has a
used 08 Malibu while folks are waiting/searching for a new one !

[Karch]

Originally Posted by espo19047

Do yourself a favor don't even mention hold back at the dealership. It is set aside for the over head of the store. You dont have a right to it.

The Trailblazer can be had for at least $4000. less then MSRP again great deal...

Thanks for the advise on not mentioning holdback, and the info on the price for the TBSS.

I am not opposed to paying a fair price, but what I don't really like is how GM chooses not to put any effort into this particular product, and they know there are issues with regards to the transmission.

Sure, I could buy something else. I probably should, as it's an aging platform, possibly it's final year, has a poor interior, and a very low feature transmission.

I'd go for the Tahoe, but I don't want something that big to go on sales calls...it's something about 5500 pounds being a lot of weight (fuel, braking distance, handling), and while the nicer imports are very nice inside, they don't have the utility (Infiniti FX).

The best price I got on one, granted I am stuck on a blue one with 3ss and no NAV, is $2300 off msrp, or about $500 under invoice.

Again, your insight is appreciated.

-Karch

[pmd67]

Originally Posted by sonjaab

Its funny...........In my area of Syracuse NY a used car dealer has a
used 08 Malibu while folks are waiting/searching for a new one !

Is that the "new" 08 Malibu or 08 Malibu "Classic"? In the Chicago area, there seems to be plenty of 4 banger 08 Malibu's, with the V6's Malibu's a little harder to find.

[caddycruiser]

Originally Posted by pmd67

Thanks Caddy

I was quoted an under invoice price on this 08 Malibu and the dealer add fees were taken off as well. Sounds too good to be true for a 08 Malibu, so I’m suspect.

Now all I have to do is sell my wife on this car now as she will be the primary driver on it.

Not necessarily, just means they're willing to sell into holdback territory. A few dealers have been selling them under invoice, especially a lot of the bigger ones that do a lot of internet business.

Our '08 was a dealer trade from a dealer with ad fees, so it was passed on, and then we paid $200 over that invoice. The difference was a few hundred dollars vs. if it was ordered/bought originally without ad fees, but oh well.