I have been reading this forum and shopping for a new GS. I was surprised over the weekend when a salesman, over the phone, offered to sell any GS for "invoice". I know its not their cost but it's a reference point which is common to all dealers regardless of model or options, and on a new GS here in SoCal the invoice is 7.1% lower than the MSRP. I read another thread here about the advertising allowance and pre-inspection fee and called him back and he said his dealership did not add either fee. I went to the dealership today and it turns out their "invoice" includes $704 for the Lexus advertising allowance. He seemed surprised at the fee add on.
First, why should I have to pay for their advertising, which is a cost of doing business?
Second, a poster on this board said that in his experience the dealership was reimbursed for this expense by Lexus.

Is this fee unavoidable as I assume all local dealers add this? Its nearing the end of December - their big sales push month. Is it likely they would go to invoice minus $704? This dealer has "about 50" GS's. I haven't bought yet, but it seems like a good time to buy.
Any comments would be appreciated.

 

My comment is solely about my buying experience and not specific to the advertising fee. It becomes almost irrelevant IMO to how they come up with the price since like you said, there is an "invoice" price used as a benchmark, so to speak.

Anyway, I just bought my GS F sport last weekend and was in the SoCal market for about a month. Since I was set on buying the F sport, that's all I negotiated for and can only speak to that. Of the 4 dealerships I had serious negotiations with, they all offered around invoice pricing + discounts/incentives. One dealership offered me $3K below invoice but they did not have the color scheme I was looking for and really wanted to make a sale with the GS's they had on the lot.

When I finally found the car I wanted (F sport, starfire pearl, cabernet interior), I got it for about $500 above invoice but also received the -$1500 conquest rebate and a -$1000 certificate. Given that this was 1 out of ~20 dealerships I contacted in SoCal with the exact car I wanted, I had limited ability to negotiate further but am happy with the outcome.

Bottom line is try to get the incentives I mentioned and that will wipe out your $700 advertising fee below invoice. There is a $500-$1000 december to remember certificate that they can use at their discretion to "make a deal." They only have a limited amount so try to push for it. Get in on the conquest/loyalty rebate too if possible. Lastly, try to buy before the month end to avoid the hike in taxes/other fee increases that will happen beginning 2013 to save you hundreds. Hope this helps.