Shopping for a new XC60 and the local dealer quotes me invoice + $400 profit. Sounds fair but when we sit down to cut the deal, they add $500 for advertising fees and $200 for processing fees. So quicky this becomes invoice + $1,100. Of course everything is non-negotiable from their perspective.

Costco offers a buying program which is at invoice. Spoke with the Costco affiliated dealer and it is invoice plus $500 advertising fee + $300 processing fee. Of course everything is non-negotiable from their perspective.

My previous V70 was purchased on the overseas delivery program so I explored that option. It was quoted as ~$150 higher than US delivery. All dealers agree this bypasses the advertising fee rap.

So it is clear that the local dealers got together and developed their go-to-market strategy on how to position their margins. Advertising fees are traditionally recovered through dealer holdback rebates on most makes. Processing fees are just jargon for margin.

Questions:

1) Is the list pricing for overseas (tourist) delivery negotiable?
2) What are your perceptions of a fair deal?
3) Anyone know of a US dealer who is more aggressive in their pricing?
4) Any additional suggestions on buying a new Volvo are appreciated.