A Question about Dealer Invoice

[RLT H2]

I have spoken with 2 dealers in the area - and both came back with essentially the same price (w/in $50.00). Both state they are giving me the price of invoice + $500. I have looked at the dealer invoice prices that are on the site here somewhere - and both dealers are giving me a price of about $2,200 abouve invoice - the one dealer is telling me that those prices do not include a $1,700 advertizing charge the dealership has to pay per vehicle - anyone know about this, or are they both full of sh*t?

[RLT H2]

I have spoken with 2 dealers in the area - and both came back with essentially the same price (w/in $50.00). Both state they are giving me the price of invoice + $500. I have looked at the dealer invoice prices that are on the site here somewhere - and both dealers are giving me a price of about $2,200 abouve invoice - the one dealer is telling me that those prices do not include a $1,700 advertizing charge the dealership has to pay per vehicle - anyone know about this, or are they both full of sh*t?

[Cincinnati h2]

I was told that there was an advertising fee for each h2 sold also.I questioned this and was showed the dealer invoice from hummer to the dealer and it does show two fees totaling $1,537.

[Drag]

Well, bull sh*t or not, there are some fees involved. The advertising fee is not required but more often than not you do have to pay it. The fee that there is no way around is the destination freight charge. For H2s that's about $800.
Just remember, the dealer is still making money on the withholding as well as whatever profit he makes off of you, so the whole invoice price is not what the dealer has paid for the vehicle, but what he has paid for it plus withholding and floor space money. They have more ways to wash fees than the mob washes dirty cash. What can you do?

Corvette= "The ability to pass with class"

[BADRAP]

Actually the dealer invoice sheet is what the dealer pays for the vehicle, and there are several fees on that sheet that as the consumer you do not have to pay or are intitled to negotiate. I was told that the advertising fees are negotiable, and certain others. The can charge you what they call a space fee, not sure of the amount and then you are suppose to pay for all the upgrades done to vehicle after shipment to dealership. But as for the invoice price that you see when they print it up, if you see it, is what they the dealership has has withdrawn by GM for the vehicle that you are looking at...

[BADRAP]

Actually the dealer invoice sheet is what the dealer pays for the vehicle, and there are several fees on that sheet that as the consumer you do not have to pay or are intitled to negotiate. I was told that the advertising fees are negotiable, and certain others. The can charge you what they call a space fee, not sure of the amount and then you are suppose to pay for all the upgrades done to vehicle after shipment to dealership. But as for the invoice price that you see when they print it up, if you see it, is what they the dealership has had withdrawn by GM for the vehicle that you are looking at...

[Cincinnati h2]

I think badrap is correct that the fees are negotiable depending on what you are paying for the h2.If you are paying close to the sticker price they will most likely be willing to wave it.When i bought mine they sold it for $1,000 under invoice so they said that had to charge the advertising fees of $1,537 which brought the price up to $537 over the invoice price i had printed out from the internet.

[NCHummerman]

Here is a subject that I do know something about ....

There is more than one dealer invoice .... there is an invoice that the dealer will readily show a customer, and the other one that actually shows the bottom line price for the vehicle --- normally not shown to a customer unless it is the "last resort of desperation" to make a sale. Added to the invoice that the customer sees is always transportation charges, advertising charges, bank carrying charges (flooring), vehicle preparation charges, and the like --- but any dealer rebates and volume discounts from GM are not shown to the customer .... FYI, GM's best dealers get the vehicles "free from Flooring" for a minimum of 30 days, and some large volume dealers get the vehicles for as long as 90 days before they are charged "flooring" .... thus, the reason that a dealer will push to move an older vehicle first by giving the Sales People an extra incentive ...

Michael
---
Pewter Hummer H2
Northern California

www.zootsuitstore.com
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[Hummer Man]

NCHUMMERMAN you are right on target.
The FINANCING aspect is called the "DEALER FLOORPLAN" this is usually done through the dealer owner own bank not GM.

Money is cheap right now so the cost is about 1/3 of 1 percent tops per month and was never an issue with H2's until the recent 90 day glut. Okay now heres where GM comes in they offer to pay the dealers FLOORPLAN cost for a specied number of months if they will "LOAD IN UNITS". Hence GM really is just paying the dealer back for agreeing to overstock the product.

The GM discounts to the dealer called "HOLD BACKS" again were very low numbers - less then $600 for most dealers or the average dealer.
Because of the HUMMER franchise agreement the hold backs were not combined with overall GM product unit sales. This sounds complicated but what I am trying to point out is the average $30,000 dollar car may provide the GM dealer with more HOLD BACK incentives then a H2!
I hope this makes sense!

[Drag]

HummerMan is right on with this one. I spoke with a buddy at the dealership over a couple of beers, and got the truth out of him. With the floorplan and holdbacks, those are not shown in the invoice price that the dealer will show to you. Between those, national incentives and dealer cash for selling the vehicles, that's where the dealership makes a good chunk of it's cash. And suckers, too, of course.

Corvette= "The ability to pass with class"