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Rebates, Incentives, APRs - Questions & Comments

Let's talk about how to use the information we
provide about dealer holdback, incentives and
revates.
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Comments

  • jilldjilld Posts: 5
    You can find a wealth of information on the Edmund's site at <<A HREF="http://www.edmunds.com/edweb/holdback.html">http://www.edmunds.com/edweb/holdback.html>; - be aware that when you hit that link, the info will be in a new browser window. When you are ready, come back here for this discussion!
  • jilldjilld Posts: 5
    a question from anothe topic:

    #3 of 3: $1500 Rebate/Incentive (Zapata) Mon 24 Nov '97 (12:58 PM)

    Did no my homework and found out $1500 on
    both customer rebate and dealer incentive. Dealer said no way Jose, only applicble to the BASIC T100! To me 'BASIC" measn frame and four wheels. Kelly Blue Book only has $500 customer rebate. This is for the Toyota T100 4wd, 5sp, 6 cy, SR5. Who is right? Dealer or Edmunds or Kelly, which is it? Is $1000 over dealer invoice to much, (intent for the $1000 to cover DH, advertising etc). Dealer Holdback 2% of base invoice means exactly what?
  • After reading Edmunds article on dealer holdbacks, I had the understanding that the dealer holdback fee was included in the invoice price.

    I am shopping for a new Mitsubishi Eclipse. I had a dealer fax me the invoice so I could see the extra fees he was telling me about. After listing the base invoice price and the invoice price on all the options, they listed some additional fees:

    sales promotion fund $100
    dealer advertising assn. $382
    holdback $439
    dealer flooring assistance $220

    These fees were added to the invoice price. Then they added 3% on top of that. Is this normal??
  • GregGreg Posts: 2
    Mitsubishi is the one make that charges the consumer DIRECTLY the holdback amount. Or rather, Mitsubishi allows their dealers to charge this instead of the normal "invisible" holdback.

    You do not have to pay this amount, just as you can dispute the percentage when shopping other makes. It is normal for Mitsubishi dealers to charge it, however, and whether or not they'll drop the charge is up to the individual dealer (and whether or not you'll still buy the car).
  • I'd like to know who you are dealing with because I have never heard of a dealer releasing invoice prices in print! How does their invoice price compare to Edmunds figure? Is it accurate?
    The holdback IS included in the invoice price. In other words, if the dealer sold the car at invoice, they make the holdback as profit. And, it is not a "fee", it is a kickback from the manufacturer. I have never heard of the "holdback fee" they are trying to charge you. Anyone else?
    May I assume the 3% is the "reasonable" profit they want to make? Well, why should you pay a profit on the advertising charge? It probably has profit built in. And why 2 advertising charges? Are they both legitimate costs? Does anyone know?
    Lastly, what is flooring assistance?
  • GregGreg Posts: 2
    Hate to disagree with you, Guitarzan, but, as I just said, Mitsubishi does things a little differently. Holdback is printed right on the invoice, and everything Niemeyer5 says sounds typical. Expect to pay 1-3% extra in these kind of charges.

    Advertising fees are usually always non-negotiable. And flooring assistance? That allows the dealer to have some models on hand at the dealership. (They gotta' pay rent, too.) You can try to argue about each of the charges, but the only one they might (and should) drop is the holdback.
  • jlbjlb Posts: 1
    If a dealer does not have the Chev. Blazer that I want,does a search and finds it at another dealer, which dealer received the holdback? Can I subtract all of the holdback or just a portion of it from invoice to determine dealer cost? What kind of fees should I expect for the dealer going to pick up the Blazer?
  • copsycopsy Posts: 1
    I would like to know where to find information on how well the 1998 Subaru Outback Limited is selling in northern Michigan.
  • Does anyone know where I can find information on
    carryover allowances or Dealer incentives on the
    1997 Mazda 626? There is no information on the
    Edmunds site about Dealer incentives although they
    do have the info on the customer rebates ($1,500 for the '97 626).

    Thanks in advance...
  • I just visited a dealer and was given the invoice and the numbers matched the Edmunds numbers - and he offered to sell at the invoice price. So, that means they make the 3% holdback, right? Then on the trade - I used Edmund's figures on my 90 Accord EX manual trans. without ABS & leather but with everything else including a phone with 157,000 miles and came up with $2700 and he offered me $2000. He said in order to get my business he may be able to add some accessories but that's about it. I think we're $700 off, am I right? Going back tomorrow.
  • wbwynnwbwynn Posts: 246
    Double check your figures using Microsoft's Carpoint or Intellichoice's Window Sticker +
  • I received a mailing from GM this weekend indicating that low interest rate financing is
    available on the Firebird (2.9, 3.9). This is missing from Edmunds' list???
  • I'm being told by my local Honda salesperson that there is no 2% holdback for Canada. Can anyone verify this? There certainly are holdbacks for the big 3. I'm rather skeptical of this claim. He also says that Honda works from a 7% margin, not 5%. Needless to say, I've already started looking for quotes elsewhere but am curious about the 2% holdback issue.

    BTW, adding 40% to U.S. MSRP for the CRV works out very close to the advertised CDN price.
  • I ordered a Dodge Ram in August, and it is FINALLY about to get here. I just heard an advertisement for $1000 cash back on 1998 Rams. Can I qualify for that?
  • To liang,

    Re: is this a good deal?

    Your calcultations seem correct. Keep in mind that dealers are more wiiling to deal especiallty towards the end of the year. Double check your figures and the car buying tips from Edmunds and if everything matches up, buy the car for the lower price. By the way, I bought a 97 Accord at invoice, basically 2.5%. They profited the dealer holdback but i was able to "pass" the destination and handling charge to them. Helps if you are informed.
  • Is it true, that the dealer inv. price for the base model of a 1/2 ton truck already includes the destination charges & adv. or FDAF assessment. If they add it on top of the dealer inv. price it is pure profit to them!
  • mxhmxh Posts: 1
    I have seen a 'regional' promotion rebate from Toyota- a $500 coupon for purchasing 1998 Toyota new cars (valid until 1/5/98). I found it from http://www.toyota.com, clicked on the 'dealer services', then used the 'dealer locator' to check my local dealer information. This special program I found so far covers most of the west PA. You can check if it is good at your area. Good luck!
  • I looked under Edmund's "Dealer Rebates / Incentives" and found nothing for Volvos. Do they not have any, or is there simply no information on it? My husband and I are buying tomorrow and need to know fast --- any ideas?
  • There are some dealer's in my area who call themselves "high volume/discount" dealers. I assume that this means that they pay Honda, etc. less than the invoice price for the cars on their lots. Is this actually another "figure" that I should factor into my bid, or are they just monkeying around with the other values that services like Edmund's reports on (eg. holdback, rebate, etc.)? If this is another separate discount, how can I determine its amount? Any ideas??
  • Along the line of bbains (#21). In the LA region it is not uncommon to see cars advertised at what should be below invoice and hold back. For example, 98 Accord LX's advertised at 16 which is below dealer cost. I have noticed the same thing with some ford's selling at a price that should cost the dealer money.

    Is this an indicator of a regional promotion? If so, is it possible to get more info on these promotions? Or, could it just be that there are a lot of large dealers in the region and they don't pay invoice to begin with?
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