[wylekoodard]

So I went to my local Ford Dealer here in MA, and started the negotiating process on putting my order in for the ST. So one of the fees that the salesman brought up to me was the "Ford Advertising Fee". I've seen some mixed input on the legitimacy of this fee with Ford. On one hand, from what I've read and heard from friends (this is my first car buying experience, BTW) is that the Dealer Advertising fee is a load of BS. On the other hand, I've read that this is a legitimate fee from Ford (see New Car Buying Tips: Dealer fees, haggling tips, scams to avoid.. This is part of the website that Chad recommended in the "How to Buy a Car" Thread.).

I wanted to get everyone's feedback on this Fee. Is this something that I should expect to pay on a Ford car, or is this just another way the dealer is trying to screw me?

 

[GNN60GT500]

My dealer never even tried to include it.

 

[Chad]

Honestly it is "their" cost of doing business. It is legit cost, even in the invoice, but.... Why should you have to pay it. Pretty much they are passing the cost on to you. Therefore making more profit on the purchase.

Make them remove it, or walk to the next dealer who will give you the same deal and will remove the fee.

Or if you feel like you want to pay an additional $xxx on the car, then dont negotiate it off.

 

[DarkBuddha]

I'm a little confused because of your language. Your dealer may show you something called a VEHICLE ORDER CONFIRMATION (VOC) sheet and show you a fee on there that says "ADV ASSESSMENT". This charge is from Ford and is included in what Ford labels "DEALER INVOICE". It is supposedly a legitimate charge that the dealer pays to Ford on each car it sells and passes the cost on to buyers. It is different for different vehicles, and is supposedly different regionally (which kinda makes sense). It is a charge that is included in the calculation of AXZD plan pricing according to Ford, so you can see its "legitimacy".

However, some dealers will also try to tack on a dealer advertisement charge of some sort, called whatever catchy thing they want to use to make it sound legit and official. It is not official, and is only as legitimate as you want the let the dealer make it. BTW, Ford specifically says that dealers cannot charge an extra advertising fee of any sort to an X plan eligible buyer.

If you want to know if which type of advertising charge it is, ask 'em. Ask them to show you a VOC and see the ADV ASSESSMENT there. If they try to tag on an extra advertising charge other than that, tell 'em no. To be honest, if you want to avoid dealing with all of this altogether, find a way to get X plan pricing (there are a bunch of ways), unless you really believe you can negotiate them under 1-2% over DEALER INVOICE (including doc fees).

 

[Ron]

On my VOC (and I have seen 2 of them now that I have modified my order and renegotiated my price), the Advertising Assessment is listed under the Dealer Invoice line items. It is not an added fee over the Invoice price, rather it is already part of that price.

When I balked at the $399 assessment anyway via email negotiations, my Sales Manager replied with this:
"The advertising fee is on every vehicle regardless if ordered as a sold unit or stock. The advertising fee is from Ford and is on the DORA and a part of every vehicles cost." And this is in fact what it appears to be.

Haggle a lower price maybe, but it doesn't look like they can remove that "assessment" as it is billed to the dealer.

 

[Shomare]

This fee is legit, and is accurately described by DB.


On the go - Via TapTalk

 

[tymeks]

This fee might be legit, but I negotiated with my dealer to have it removed. They didn't fight very hard either. The price I am paying does not include any type of advertising fee or assement fee, just tax title and license.

 

[Shomare]

This fee might be legit, but I negotiated with my dealer to have it removed. They didn't fight very hard either. The price I am paying does not include any type of advertising fee or assement fee, just tax title and license.

can't help but wonder if you are paying it in some other way.

 

[dgc333]

FWIW, last year when we bought our 12 Focus the dealer had preprinted on the sales order $348 for document prep fees and $275 for "glass".

I had X-plan which the salesman was familiar with but the business manager that filled out the sales order didn't have a clue about. She had to go see the GM before scratching the doc fees and the "glass" she removed without argument when I told her the local police will etch the glass with your VIN for free.

 

[DarkBuddha]

This fee might be legit, but I negotiated with my dealer to have it removed. They didn't fight very hard either. The price I am paying does not include any type of advertising fee or assement fee, just tax title and license.

If you are paying dealer invoice or higher, you are paying for Ford's "ADV ASSESSMENT" (and the "FUEL CHARGE" and "DEST AND DELIV". If you're paying under dealer invoice, well done!

 

[tymeks]

HMMM If I could scan the pricing sheet I would. But I can clearly see on my pricing where they would charge the advertising fee and I can see where I am not being charged for it. I can see where it says invoice, then dealer invoice with the advertising fees, then MSRP. I paid dealer invoice plus 500, no advertising fees. Invoice price is $25.1K. I paid 25.6K plus doc fee of 395, registration fee of 8.00, plate fee of 430.08, title fee of 4.00, tax of 2,252.80 and a tire tax fee of 5.00 all equals my OTD price of 28,698.63.

 

[DarkBuddha]

Pretty good looking deal without knowing exactly what you ordered (I'm assuming an ST2 with no added on options). If the "ADV ASSESSMENT" had been included, calculating dealer invoice on a straight ST2 should look like this: $22,100 (base invoice) + $2235 (ST2 package) - $108 (package discount) = $24,227. Adding the required destination cost ($795) brings it to $25,022. Adding the FUEL CHARGE would bring it to $25,069.16. Adding an approximate typical $425 for the ADV ASSESSMENT would bring it to = $25,494.16. That's just over $100 under your negotiated deal.

All of that said, you'd still be better off with X plan because of your dealer's higher $395 doc fee, even using my dealer invoice that included the "requisite" ADV ASSESSMENT. Starting with my calculated dealer invoice of $25,494.16, X plan calculates to $25,667.18. And then the dealer is only allowed to add $100 maximum for the doc fees (and no other fees), bringing your total to $25,767.18 versus the $25,995 you're currently set to pay. That's another $227 you stand to save using X plan. If you're not currently X plan eligible, check a couple of the other threads about it on the forum... there are ways to get it by joining organizations and clubs.

 

[DarkBuddha]

BTW, I just realized you might've gotten the TS paint, which would explain why your dearler invoice was right at $25.5k without the advertising and fuel charges. In that case your current deal might be better than X plan. But if that is the case, just make sure you don't get caught by the advertising and fuel charges when you go to sign and take delivery. There are horror stories on the internet about dealers that have done that to folks. That would suck!

 

[Chad]

The ad assessment is not a fee, i learned today that it is a credit Ford gives the dealer when selling the car. This coming from a automotive professor at the university i work at. She says she teaches from Ford invoices. The assesment a a charge on the invoice, but credited back to the dealer when the car is sold.

The fee is pure profit.

 

[Shomare]

The ad assessment is not a fee, i learned today that it is a credit Ford gives the dealer when selling the car. This coming from a automotive professor at the university i work at.

The fee is pure profit.

So its a padding of the sale. Guaranteed profit built in by the manufacture.

Can't keep the lights on with the amount they charge but it also helps if and when a salesperson whines that they are only making X on a deal.

 

[Chad]

Argue that folks.

 

[Shomare]

I did the math and the dealer makes 1,415 on my sale. I'm paying X plan. Subtract what the dealer pays Ford and it leaves 1,415 profit to the dealer. Most of that cost is from adding on: Destination and delivery, fuel, advertising, and the actual difference between dealer invoice and dealer cost.

My point is, selling at invoice still nets a profit.

 

[Brandon]

I did the math and the dealer makes 1,415 on my sale. I'm paying X plan. Subtract what the dealer pays Ford and it leaves 1,415 profit to the dealer. Most of that cost is from adding on: Destination and delivery, fuel, advertising, and the actual difference between dealer invoice and dealer cost.

My point is, selling at invoice still nets a profit.

Dealerships make their money on used cars (and trade ins) and service anyway. New cars are rarely a major profit center for them.

 

[DarkBuddha]

BTW, Ford pays dealers a commission on X plan sales as well, above and beyond the holdbacks the dealer gets with dealer invoice. So, don't feel any concern or regret for your sales person... they'll get paid.

 

[Shomare]

BTW, Ford pays dealers a commission on X plan sales as well, above and beyond the holdbacks the dealer gets with dealer invoice. So, don't feel any concern or regret for your sales person... they'll get paid.

That is odd. My dealership deal was better than the X plan deal. When X plan came out and I mentioned it to the dealership, they didn't ask to change the deal in order to get that extra X plan commission.