So you’ve found the car you want and can afford, and now you’re at the dealership wrapping up the final details before you can take your new car home. You’ve negotiated what you think is a great deal, but when you sit down to sign the sales contract, those extra “out-the-door” fees might seem a little alarming. Fees can add several hundreds, even
In TrueCar’s continued quest for transparency in the new car buying process, our series on dealership fees will help you learn what you should be prepared to pay. This segment focuses on regional advertising fees.
What are Regional Advertising Fees?
Regional Advertising Fees are a reasonable cost of business that the dealer pays for advertising and promotions that the Manufacturer runs in the dealer’s area. These are itemized on the vehicle’s invoice. Regional Advertising Fees are not typically negotiable, as they are part of the dealer’s cost for the vehicle. Viewing the dealer invoice will show the Regional Ad Fee amount the dealer was charged by the manufacturer for the vehicle and is included in the total invoice, and by definition the MSRP price, of the vehicle.
The vehicle invoice price does not include any of the
Some OEM’s don’t charge an Ad Fee according to regions. In fact, some OEM’s (such as the Chrysler Group, Infiniti, Porsche, and Volkswagen) don’t charge regional advertising fees; instead the manufacturer may support national advertising to focus on general brand awareness, and then allow each dealership to choose how to promote itself using local media. However, some manufacturers divide their dealers into as many as a 15 or more regions across the United States to help them reach a more targeted consumer audience.
In many cases, manufacturers customize specific advertising campaigns for certain parts of the country. If you live in the Pacific Northwest, you might see vehicles driving through a rainy forest canyon. If you live in the Mountain Region, the vehicle might be driving through snow instead of rain. In the Southwest, commercials are more likely to show a desert scene. In the Southeast, where truck sales are higher, a manufacturer might encourage targeted advertising to promote more sales of smaller sedans and coupes. These geographically focused commercials are intended to help the regional dealers advertise better to their specific market.
An auto dealer who belongs to a regional association will be assessed a small charge per vehicle for his “share” of the advertising costs. If you’ve been doing a lot of internet research, you might not find this fee at other car buying sites because they are not able to track it region by region. However TrueCar IS able to identify these fees by region so we’re able to provide an accurate estimate in our pricing reports; curious minds can find this breakdown in the Table tab for the new car they are researching. Our chart below indicates a general range that new car shoppers might see across the country; keep in mind that dealers may pay a different advertising fee based on the model, configured options, and their specific region, so brands with more expensive models will show a broader range.
Guide to Manufacturer Regional Advertising Fees (as of August 23, 2011, subject to change) |
Acura regional advertising fees may range from $300 to $350. |
Audi regional advertising fees may range from $331 to $3,924. |
BMW regional advertising fees may range from $200 to $580. |
Buick regional advertising fees may range from $264 to $902. |
Cadillac regional advertising fees may range from $346 to $1,769. |
Chevrolet regional advertising fees may range from $179 to $2,231. |
Ford regional advertising fees may range from $275 to $860. |
GMC regional advertising fees may range from $257 to $1,257. |
Honda regional advertising fees may range from $151 to $435. |
Hyundai regional advertising fees may range from $107 to $654. |
Jaguar regional advertising fees may range from $350 to $750. |
Jeep regional advertising fees may range from $450 to $606. |
Kia regional advertising fees may range from $121 to $327. |
Land Rover regional advertising fees may range from $500 to $900. |
Lexus regional advertising fees may range from $437 to $1,684. |
Lincoln regional advertising fees may range from $788 to $1,005. |
MINI regional advertising fees may range from $182 to $182. |
Mazda regional advertising fees may range from $100 to $432. |
Mercedes-Benz regional advertising fees may range from $500 to $650. |
Mercury regional advertising fees may range from $590 to $728. |
Mitsubishi regional advertising fees may range from $20 to $20. |
Nissan regional advertising fees may range from $200 to $200. |
Saab regional advertising fees may range from $423 to $710. |
Scion regional advertising fees may range from $11 to $116. |
Smart regional advertising fees may range from $80 to $80. |
Subaru regional advertising fees may range from $100 to $300. |
Suzuki regional advertising fees may range from $194 to $417. |
Toyota regional advertising fees may range from $199 to $2,133. |
Volvo regional advertising fees may range from $250 to $500. |
Shopping for a new car? Do your Research at TrueCar.com, First
TrueCar.com can show car buyers and car dealers how much people actually paid for a particular car in a specific local area. With TrueCar pricing, both new car buyers and new car dealers can know at any time what is considered a good or great price on a new car. Our pricing information is the most up-to-date and comprehensive in the industry! Do your research ahead of time, and print a True Car price report before heading in to the dealership to assure you both know the fair market price.