Question For The Car Dealers

Dave N · 04-29-04, 09:30

I'm trying to buy a new Chevy Silverado, and the dealer has showed my his invoice price sheet. All of the invoice prices match up with Edmunds/KBB, but there are two added costs at the bottom marked

"LAM DEALER CONTRIBUTION"
"LAM GROUP CONTRIBUTION"

The dealer says that these are part of his costs, but they are not mentioned on any of the internet sites. Can anyone tell me the truth about these? Everyone I have interacted with at this dealership has seemed honest and up front (salesmanship, but no BS), but this really has me wondering. The sheet he gave me also lists their cost less holdback and wholesale finance charges. I should also mention that they are getting the truck from another dealership.

04BlackAV · 04-29-04, 09:49

The only other fee that I know of that doesn't show up when you price it at Edmunds and others is the advertisement fee that the dealers pay.And this will vary anywhere from 400.00 to 650.00 on top of the invoice.Depending on who or where the dealership is located the price will be different.I always end up paying it.

Dave N · 04-29-04, 10:30

Yes, this is what the dealer told me it was. The total of the two is right at $400.

SR77 · 04-29-04, 10:47

If the dealer said it was advertising cost refuse to pay it. Advertising should be a cost of doing business, not something you should be helping them pay for. Plus then they go and put those stupid dealer decals on your new car, which is just more advertisment. Tell them you should charge them advertising fees for putting that on your car. I have never paid for advertising with any new car i bought.

Mosca · 04-29-04, 11:26

Quote:

Originally posted by SR77
If the dealer said it was advertising cost refuse to pay it. Advertising should be a cost of doing business, not something you should be helping them pay for. Plus then they go and put those stupid dealer decals on your new car, which is just more advertisment. Tell them you should charge them advertising fees for putting that on your car. I have never paid for advertising with any new car i bought.

To SR77, not Dave N:

The advertising fee is mandatory for the dealership; we have no choice. You can rail all you want, but if you want to buy the car, you'll have to cover that fee. If you don't like it, "Thanks for looking, and best of luck."

Also, Dave N has indicated that he has had a very pleasant experience so far; what advantage would either party gain by either one taking an adversarial stance, like you've suggested Dave N do? They've thoroughly, fairly, and accurately explained their cost structure. Would you like them to bleed for you next?

Tom

Dave N · 04-29-04, 11:32

Thanks a lot Mosca. I was hoping that you would chime in. That really helps me out. Like I said, I had a gut (and cerebral) feeling that these guys were being upfront and honest, but I'd just never seen nor heard about this fee.

I'm buying tomorrow.

SR77 · 04-29-04, 11:54

If it is a mandatory fee, then how come not every dealer out there charges for this fee. I am not saying to start a fight with these people, but just do a little negotiating with them(nicely). Like I said ealier, I have bought 2 new cars within the last 3 years and I didn't pay an Ad fee for either of them, so there are dealers out there not charging for it.

LouisanaJeeper · 04-29-04, 12:02

Ah, I'm having flashbacks of my car shopping. I won't go into details, but I'll just leave it w/ the fact that I ended up going to 5+ dealerships, 3+ months, and ended up at the dealership that was 1hr away.

HRP · 04-29-04, 12:57

If the dealer wants your business, he should "reduce" the price to "cover" both the LAM's. And you can shop around. Its not like they are the only Chevy truck dealer in Ill. Go on-line and see what you can find. I've never paid it. I bought my last car via on-line shopping and asked for the total "turn-key" amount (taxes, tags, etc) before I went to pick it up. Saved about 10% by on-line shopping and was happy to drive 100 miles for the savings. The new car dealership nearby is very happy to have my service business under the warranty even though they know I bought the car elsewhere. On-line shopping can be very competative. I even got a slightly lower bid (the day after I bought the car) from a dealer in Florida which included delivery to North Carolina. Try listing with some of the on-line free car buying services. And if you are a member of a chain like Costco or Sam's, see what kind of price they can get for you. And if the dealership knows it is competing, they just might meet the best total price. Many of the dealerships have on-line sites where you can view their inventory and anticipated inventory and dicker for the best price. Depends on how much web surfing energy you are willing to expend. Especially if you are in a position to go slow and not impulse buy.

SR77 · 04-29-04, 01:17

I agree with HRP. Do your homework first. Sites like Carbuyingtips.com, edmunds.com are good research sites. I would also get some online quotes (invoicedealers.com, etc..)to negotiate with. Even though the dealership has been real nice to you and up front, shop around first, competition is you friend when car shopping for the best price. Also, when you get online quotes you are working with the dealerships Internet manager or fleet manager which tend to give you better deals(less fees) and no hassle shopping because they don't always work on commission.

medic · 04-29-04, 02:02

is the final price something you're willing to pay. if so, who cares if they're charging you $1 for the car and $19,999 for advertising or vice versa.

I never understood looking at the details of the price. Just tell me the bottom line and if it's what I want to pay, sold. If not, I tell them what my target is and they can do whatever they need to with the numbers just to make sure I get the car at the price I want. I pay cash so it's easier to think this way, but even with financing I think the same holds true.

04BlackAV · 04-29-04, 02:18

I had the ad fee explained to me as a built in cost,only in buying a car is it broke down and seen buy the buyer,as most good dealerships show there invoice sheet.When you buy a TV or most anything there's a built in ad fee somewhere in the price you pay you just don't see it like buying a car.When you buy a set of tires are you going to haggle and refuse to pay the hidden ad fees somewhere in the price.I've never been lucky to get away without paying the ad fee buying a new car,when your at invoice or below it's hard to get the dealership to eat the ad fee.If you can get away with it then great.