cannga

Hello,

Apologize that this is slightly off topic, but I don't know where else to ask and get answer this quickly.

I have been told by the BMW dealer that there is a fee of 1% of MSRP that **adds on** to the invoice for every BMW that is sold.

For example, if Kelly Blue Book is 60,000 invoice, I must add destination charge of 695, AND a advertising charge of $650 (1% of MSRP), and therefore the lease is based on the total of 61345.

The destination charge I understand, but is the advertising charge legitimate? They refer to this as the MACO (sp?) fee.

Thanks & regards,
Can

jksanford

I've heard of this kinda thing when a new model becomes available, but I don't think it's an issue anymore on the e60's.

I didn't pay sticker, let alone an adv. fee.

I could be wrong though. I've been wrong before. My wife keeps telling me.

James

kryptokat

The advertising fee is a gimick. Yes there are dealers out there that add it to the cost of the car and then there are dealers who don't fool around with you

wolverine

Your dealer is ripping you off. There is no such fee charged by BMW. I would find another dealer.

cannga

Thanks for all the (very helpful) replies.
Just when you think you got things pinned down, they spring a new one on you.

Thanks and regards,
Can

Breae60

Actually, ad fees are legit according to my good buddy who is the finance manager at a SoCal BMW Dealer. That said, no one actually pays MSRP...find a different dealer if you can't beat MSRP. I believe the avg right now for the '05 is about $2200 over invoice. If you're in SoCal, try Crevier...2nd bimmer in past 5 years from them, always the best deal in town...oops, being buddies with the finance manger and the sales manger is my client does help.

roost

I was charged a 400.00 National advertising fee when I purchased by BMW

Iceman

Found on Carbuyingtips.com:


Advertising Fees

Usually when you buy through discount sites like from Cars.com, InvoiceDealers, Autoweb, Car.com, Autobytel, CarsDirect and AutoUSA you avoid ad fees. Car makers charge dealers for regional and national advertising campaigns. These charges are reflected on the invoice and are a legitimate cost of doing business. This is where opinions differ, as I feel it's their cost of doing business, not ours. Tell them to pay your fees like gas, wear and tear, and your time for driving all over town to shop for the car. Many dealers are sticklers about this fee, and it's difficult to get them to drop it, but some do waive the fee. If a dealer adds on their own advertising fee above and beyond this, they are out of bounds. Dealers try to charge $250 -$1000, but it should not be more than $250. You're not paying for their inability to find cost effective ads. $1000 ad fees allow the dealer to charge you a lower price on the car. You think you're saving money, but ad fees take it right back. This fee may also show up as "Sales Promotion Fund", or DAA, or ADA, or anything referring to ads. Edmund's says it's non-negotiable, but they are wrong. Anything in life is negotiable, and I don't give up that easily. What angers me the most is the cryptic way that dealers hide this fee from you by using huge acronyms, then playing stupid when you question it. "Duh, I don't know, we always charge this fee". A Nissan Dealer in Chicago told one of our visitors that they have to charge the Nissan advertisement fee and can't drop it or they can face a class action law suit. Nice scam. Where's my bull icon?

Ford dealers use the cryptic term "FDAF/LMDA" on their invoice. "FDAF" stands for "Ford Dealer Advertising Fund", and the "LMDA" stands for Lincoln Mercury Dealer Advertising. Why can't they just disclose it as "ad fee"? I didn't pay an ad fee for my Lexus in 1998 or the Mazda Millenia in 1999. Honda add fees are built into the invoice price, don't let them charge you extra. Other companies choose their own cryptic acronym, like DAA (Dealer Area Advertising), TDA (Toyota Dealer Advertising Fee), HDA, you get the picture. If it ends with an "A", it's most likely an advertising fee. Speaking of advertising, dealers are neither grateful nor shy about plastering their name on the trunk of your shiny new car at a cost of $0 to them. You then spend the next several years advertising their dealership free of charge with your moving billboard. You should charge them a $600 advertising fee for that.

cannga

Wow. I was not wrong when I decided to ask the question here! Talk about multiple instant replies. I am glad I found this forum.

Thanks re. your concern that I am buying at MSRP. I am not.

I am currently at 1500 over invoice at a dealer far from my home (Alexander, downtown LA) and 1800 over invoice at South Bay, Hermosa Beach. This is for ordering the car, not buying from the lot. Because I need a loaner for future services, and South Bay only provides loaner to THEIR customers, I am working w/ them.

Back to the ad fee. Is it correct to say, then, that the ad fee is not THAT illegit? I guess it depends on how low off MSRP you have got them to go down to? If they have discounted so much from MSRP, they won't budge on the ad fee?

Thanks and regards,
Can

5 Rakete

MACO is legitimate in those areas where these is a regional advertising effort and where the dealer participates. Nick Alexander does their own advertising so they may very well have opted out and thus may not have MACO on their invoice. South Bay, where I have my 545i on order, does participate and so MACO will be on their invoice. I've have a copy of the invoice for my actual car and it's on there from BMW, not the dealer. The dealer owes this money to BMW so getting them to "eat it" will be a tough sell, if you are working up from the invoice price anyway.

Also when talking about invoice you need to be very specific. Is it the invoice you see in Kelly Blue Book which is not specific to any region or dealer and therefore does not inlcude MACO or is it the dealer's "invoice" or cost which would include MACO if applicable. Nick Alexander and South Bay's "above invoice" prices may be apples and oranges. I don't know since I have no idea if you are talking absolute dollars with them or relative "above invoice pricing".

If you have a deal lined up for $1800 over invoice at South Bay I assume that means internet published invoice plus MACO plus $1800. That's not bad, in fact it's better than my deal and I know Monty and Martin so I'm feeling a bit like a schmuck. If it's $1800 over the internet published invoice all I can say is Buy The Damn Car, that's a hell of a deal.

By the way MACO is calculated as 1% of the base invoice (including the Systems and Training Fee that every BMWNA dealer pays).


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