Dealer Advertising & Dealer Prep Fee?

[Midnight Blue]

I'm located in PA and my dealer is claiming that Audi adds a dealer advertising fee to the invoice. This fee is additive to the dealer invoice price for the car and options. In addition, the dealer claims that there is a dealer prep fee which is also additive. Together, these fees amount to $756 which are added to the invoice price in order to calculate true dealer cost. It is from this adjusted cost that dealer markup is applied. In other words, if I proposed a deal at $500 above dealer cost, it would actually be $1256 above the invoice prices shown at sites like Edmunds and KBB. Are these cost adjustments legit? They did show me an invoice from Audi (although from a vehicle transferred from NY) that did in fact include about $400 for dealer advertising fees. Can anyone confirm or repudiate that these fees are indeed legit? For a lease on a 2008 Q7 4.2 Premium, I've negotiated a capitalized cost of $500 above dealer cost and money factor at the buy rate. This is a good deal so long as the $756 is a legitimate fee.

[MarkItZero]

those charges are not legit.

[89vette]

Those are negotiable if you ask me. Granted the dealer is entitled to make some money but they shouldn't try and hose you on prep fees. I'm in PA also and the dealer I was working with was almost $3K higher than I wanted to pay (price and trade difference since I don't lease). It was a ridiculous affair where the inexperienced sales person kept going to "speak to his manager." I finally had enough and started calling dealers that had the car I wanted and I got the deal for what I wanted to pay. Over a month later and the first dealer still has all 5 2007 Q7's on the lot. Are you is Western PA? If so I recommend Sewickley Audi.

[Midnight Blue]

I'm in eastern PA near Philly. Turns out that at least a significant portion of the fees are legit. Audi does add advertising fees to dealer invoice on a regional basis.

I'm going to try to identify exactly what constitutes the advertising and dealer prep portions. I may consider paying the advertising fee, but not the dealer prep.

[1990V85speed]

The dealer advertising fee is from Audi and is legitimate. The dealer prep is just another way for the dealer to add profit. Don't pay it! Walk away from the deal!! Which dealer in PA? Don Rosen? I'm originally from Allentown.

Have you looked at a 2007 leftover? There are great deals right now on them. That is if you can find one that you like. Not many left this late in the game.

Look at this site for dealer incentives on 2007's.

• Costco Auto Program

[ladyaudi]

The dealer advertising fee is legit as well as a regional fee. In our region (tx) it adds exactly $495 to the dealer invoice. It is listed on the invoice as a fee, it is not hand-written in or fluff. As for prep fees, now that sounds like fluff. I know of dealerships that charge a $497 'dealership service fee' which buys you a whole lot of nothing.

[Midnight Blue]

Yes, it is Don Rosen. I want an 08 and will have to order one to get the exact specifications I am looking for.

I've asked them to breakdown the $756 in to the Advertising component and dealer prep component. I'm willing to pay the advertising, but the dealer prep bothers me. We'll see how they respond.

However, I did secure a deal at $500 over dealer cost. Even if this translates to $1256 over invoice, it's not a bad deal, just not the deal I thought I was getting. I made the offer and the accepted, but I did make my offer based on their word that their was another $756 in cost.

[obLu]

What they'll try to explain is that the detailing department and the service department charge the sales department for cleaning the car and inspecting it. (if they really do inspect it, which I doubt, but they do detail it ... I've seen cars come off the truck and it's not pretty, even covered carriers)

But, uh, yeah it's still the same dealership whether you want to push the money around in departments. So it's a way to guarantee some profit and get the customer to buy into the excuse.

[mksap11]

not negotiable (or I just didn't try hard enough :-)

[Midnight Blue]

Here is what they told me about the fees:

Dealer advertising fee $300
- Port preparation fee $195
- State Inspection $61
- New car dealer preparation $200

Another dealer in the area corroborated the Dealer Advertising fee ($300) and the Port Preparation Fee ($195). Looks like I just need to ask the dealer to forgo the remaining $261.

I hesitate to ask since I already agreed to the price and $761 over invoice on an ordered 08 4.2 Premium is not a bad deal. I just feel a little misled.