February 10, 2006, Newsletter Issue #28: Car Dealer Scams
Tip of the Week
There are many ethical, honest car dealers. Unfortunately, there are just as many unethical new and used car dealers.
Number 1 on this year's list is the "Double Dip Advertising Fee" scam. How it works is the dealer slips an advertising fee into your vehicle contract. The problem is, however, that advertising is already built in to the car dealer price. If you see this fee on your contract, demand that the dealer remove it. If the dealer tells you the factory doesn't charge it an advertising fee on the invoice, make the salesperson show you the dealer invoice. If there is no fee on the invoice (which is highly unlikely) then it is okay for the dealer to charge 1-3% of MSRP for an advertising fee. Keep in mind that if the fee is not charged by the factory, it is 100% negotiable just like any other part of the deal.
Unfortunately, advertising fees that appear on the factory invoice are considered part of the dealer cost and are not negotiable.
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