bam

I was hoping to get some feedback from the community when shopping for a new car. As you negotiate your price, have any of you ever noticed an extra advertising fee or charge? It seems that if someone were to walk into a dealership and buy a car at msrp, you would never see this extra fee or charge but if you negotiate the price, let's say down to invoice, it seems that the dealer will add this extra fee/charge on top of the invoice price.

I've seen it listed as "TDA." First of all, does anybody know what TDA stands for?

Second, is this a legit fee to be passed on to the customer or does it seem like another hidden or cryptic charge to profit from the transaction one way or another?

I'd like to get your feedback for those that have experience with such a fee/charge. Thanks.

UCSB

I purchased my car here in the SF Bay Area. I purchased in Sept 2010. Times were different back then and it was easier to get a good deal. I got $6500 off MSRP on my FWD 450h. So this was thousands below invoice. There were absolutely no fees placed on the transaction at all. The negotiated price was it, except for the standard tax/license fees that you can look up on the CA state web site. But, times change and perhaps Lexus or the dealers have something new.

BertL

Have never seen this practice with Lexus across 6 different dealerships I've purchased from over the years, but I tend to question any line items I don't understand in any transaction I have to sign my name to -- be that car or mortgage, so go for it.

bam

It's interesting because some dealers are asking for this "TDA" charge and some aren't. It quite a bit too; not $100 that's for sure. That's why it's got me wondering what the charge really is for because if it's advertising, wouldn't all dealers be subject to this overhead cost? It's wierd that they put that fee/charge on their to tell you that we're passing on our advertising (or whatever it's for) cost to you. I can't say that I recall such a thing when we signed our closing docs for our house but then that's a whole another animal with their email and copying fees.

In essence, I'd equate this charge to something like if I bought a $.99 hamburger at MCD and they rang it up with taxes and then said, there's an additional $.25 charge for advertising. Normally, when a company sets a price for a product they're selling, it's naturally built into the selling price to include all of that. So in my eyes, the msrp should already include the advertising fee/charge.

bam

Wowsers! That is an awesome deal. I wonder if those deals are still around especially, considering that the 2013's are right around the corner and in a few months, the 2012 will be old news.

JimH2

Some terminology and discussion of markups follows. Not sure what TDA means ? The extra fee that burns me up is when they want to charge you for them doing the paperwork to sell you the vehicle (not talking about title/license fee which is a legitimate paperwork fee). How do they expect to sell a vehicle without doing some paperwork. One time that extra paperwork/transaction fee was put on the final paperwork (e.g., ~ $ 150 or so) when I was making a vehicle purchase and I asked about it. I then said I would not purchase the vehicle until I negotiated another $ 150 off the selling price with the salesman. Found the salesman in the lot, and he took an additional $ 150 off the price of the vehicle. They still left the original $ 150 transaction fee on the paperwork, but took the $ 150 off the sales price. This was not at a Lexus dealer.

http://www.carbuyingtips.com/car3.htm

JimH2

Found the acronymn in the above article:

TDA (Toyota Dealer Advertising Fee),

BertL

Oh boy. I was hopeful only the German brands were doing such things, and not the Japanese, but I guess everyone attempts to find ways to jack up the price. Interesting approach, because from a "MSRP" comparative perspective, fees like this don't show up.

billy44bo

I saw ADP before Addition dealer profit but not TDA Did not see it on the last three cars that I have gotten from Toyota ans Lexus

kitlz

I wasn't charged the TDA fee but I had two others courtesy of NJ. My favorite was the tire fee of $7.50, or $1.50 per tire. They included the donut spare. That should have been $.75 at most. The other was .4% of the gross sales price for being over $45K. At least it wasn't for being fuel inefficient. It's called the Luxury and Fuel Inefficient Surcharge.

Doc fees are negotiable. That's per my brother-in-law who has his dealer's license. But most people including myself just pay it. I get it back other ways.

gqscholar

I purchased a 2012 Lexus a few months ago from north jersey and got hit with a $250 TDA fee.

I knew I was getting ripped off. The sales guy said it was a fee that everybody was charged.

He got me good with that one.

I get the price down from 49750 to 44050 and they decide to hit me with a bogus fee.

This is why I hate buying cars. There is never a set price. I always feel like I am getting ripped off.

Last time I go to that dealership. Hope they enjoy their 250 dollars, bc they won't get my business again when i purchase my second lexus next year.

gqscholar

Great job on your part don't fall for their scams like i did

GRPFAN

If the dealership does charge for various fees, why should you feel you got riped off?

You don't have to sign anything until the price your willing to pay is correct.
Also, all fees/charges need to be stated on your contact.

I just went through all that with my Lexus dealer on county taxes that the dealer forgot to add to my sales contract
then tried to collect a month and a half AFTER THE SALE..............

gqscholar

I blame myself for believing him and thinking the charge was legit. After reading this board I have come to realize it wasnt.

They got over on me good, so ill do business elsewhere next time

GRPFAN

Actually I'm guilty of signing a purchase contact myself without looking it over good.

After I got home and read it carefully, I was charged $50.00 for adding nitrogen in my tires.....

Yup.....asleep at the wheel for sure.