IMR Contribution and LMA Group Contribution?

[Jeff_SS]

So I am in the process of getting ready to buy a new 2013 Camaro 2SS and I have located a car that is coming in to a dealer in a few days and I am wanting to buy it.
One thing I noticed on the dealer invoice was IMR Contribution and LMA Group Contribution prices. Both at $402.25
So that is $804.50 that the dealer adds on to the invoice price.
Is that BS or is it just something I have to deal with?

Did anyone else pay these fees when getting their car?

[Jeff_SS]

Please respond.

[K32 Camaro]

Never heard of these. Ask the dealer what the F these are.

Sounds like a donation... can you write them off on your taxes? lol.

[Jeff_SS]

Originally Posted by K32 Camaro

Never heard of these. Ask the dealer what the F these are.

Sounds like a donation... can you write them off on your taxes? lol.

Well they're basically advertising fees the dealer charges.
Which is stupid..advertising fees are part of doing business, I shouldn't have to pay for them myself.

[K32 Camaro]

Originally Posted by Jeff_SS

Well they're basically advertising fees the dealer charges.
Which is stupid..advertising fees are part of doing business, I shouldn't have to pay for them myself.

Agreed. Tell them to drop them, there are plenty of other places that don't try and squeeze out a meezly extra $800 from their customers..

[Hopper]

No dealer will drop these fees. They are for voluntary GM advertising programs as a percentage of the price of the vehicle. LMA funds local dealer group advertising and iMR funds advertising for individual dealers. Virtually every dealer participates. These fees increase the dealer's cost for the vehicle which they pay directly to GM. Things like doc fees can be negotiated, these can't or the dealer would be making virtually no money in this day of invoice up pricing.

[K32 Camaro]

Originally Posted by Hopper

No dealer will drop these fees. They are for voluntary GM advertising programs as a percentage of the price of the vehicle. LMA funds local dealer group advertising and iMR funds advertising for individual dealers. Virtually every dealer participates. These fees increase the dealer's cost for the vehicle which they pay directly to GM. Things like doc fees can be negotiated, these can't or the dealer would be making virtually no money in this day of invoice up pricing.

Interesting..

Out of 2 ford dealers 1 chrysler dealer and 2 GM dealers near me none of them have these fees.

[Hopper]

Originally Posted by K32 Camaro

Interesting..

Out of 2 ford dealers 1 chrysler dealer and 2 GM dealers near me none of them have these fees.

Can't speak to Ford and Chrysler as I don't know their programs. As for GM, the programs are voluntary so there are dealers who don't participate and, in effect, pay a lower invoice to the factory. There's just not many of them. The participation rate is very high.

On the iMR program, GM matches a portion of dealer contributions, so most dealers are in to get the free money. LMA also enjoys a very high participation rate as it's a very effective way for dealers to pool their ad dollars and get better exposure for their brands in media.

Most manufacturers have these programs in some form. They are all a little different and called different things. Some are called out on the invoice, like GM does, and some are not. Either way, the cost of these programs are baked in to the invoice for almost all OEMs one way or the other.

As stated above, I'm not familiar with the details of the Ford and Chrysler dealer ad programs, but I know for a fact Ford has VERY active dealer associations in just about every major city, just like Chevy. Any time you see an ad tagged "Your tri-state Ford dealers" or "Chevy Drives the Motor City", that's what you are seeing. An ad placed by a dealer association funded by invoice collections from the member dealers.