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If
You Know Their Rules ...
You Can Play Their Games
Advertising
fees
Some dealers will add a separate charge for advertising. Their
excuse is that the manufacturer charges them a fee on every
car to help defray the cost of reaching you with their ads
and commercials. You might respond by saving:
"Since I never see any of your ads, I guess I won't
have to pay the fee. "
Or you might suggest that since advertising is a cost of doing
business, it should be built into the profit. If they insist
on adding the fee to the price, make it clear that since you
are shopping, the additional cost could put them at a disadvantage
against the other dealerships you plan to visit. A statement
to this effect will not be lost on a salesperson. If the dealership
will not budge on the advertising fee and you decide that,
all other things being equal, this is the dealership where
you'd like to do business, try and use your agreement to pay
the advertising fee to win a concession on another point.
Destination
Charges
All manufacturers charge their dealers a destination or transportation
cost, and this number is shown on the Monroney. This is a
standard pass-along fee and one that they will not negotiate
because there is no profit for them in the charge.
The Costs you Don ‘t See
The
second set of numbers is what the manufacturer charges the
dealer for the car and the options. This is referred to as
the invoice or "tissue" cost. The difference between
the MSRP and the invoice is the markup and targeted profit
figure.
During your test drive, find an opportunity to copy down all
of the price information on the window sticker. Or if you
prefer, just drop into a dealership and, should you be approached
by a salesperson, announce that you are just looking. Usually
that's enough to send them back to their desks, figuring that
since you're not a buyer "today" you're not worth
talking to. The major task here is to be sure that you write
down all the key information including the dealer add-ons.
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