January 26, 2006

Hi Tony

We are buying a 2006 Impala SS. On the price quote it says "LAM Dealer Contribution and LAM Group Contribution." Do you know what LAM is?

Also their MSRP and Invoice amounts are higher than Edmunds. Why the difference?

I hope you can answer these questions today, as we are supposed to sign the papers this afternoon.

Thanks.

Linda R.

Answer:

Hi Linda,

First off, the LAM is an advertising fee that dealers are charged by the factory to participate in regional group advertising. The fee is included on the invoice and becomes a part of the dealer's cost, so it is always passed along to the buyer.

As far as the difference on the MSRP and Invoice goes sometimes Edmonds and the other dealer invoice sites are not totally up to date with their information.

However, recently GM announced a reduction in the MSRP on certain models. They FedEx'd new MSRP stickers to their dealers to put on the affected cars.

Now, I don't know if the Impala SS was one of those models that received the reduction in price, but if it was - and the dealer isn't using the updated figures then it's possible that Edmonds has the latest figures reflecting the changes, and the dealer is still using the higher figures! Possibly to make an extra profit on an unsuspecting customer. Please understand, this is all speculation on my part.

It would be a good idea on your part to shop another Chevy dealer and then compare deals. You don't want to rush into anything if you have any reservations about your current deal. It's best to hold off and be sure of what you're doing.

All my very best...

Tony Iorio