Rebates, Incentives, APRs - Questions & Comments

sille1

Same question as #627 re rebates and Cherokee

richard927

sille1 (and others),

See my post under separate topic (#910) "Questionable Info..." for the answer to this.

(You need to return to the Topic List).

Good luck!

JOBE

I HAVE BEEN OFFERED INVOICE PRICE OF $31,296 ON A
1999 DODGE DURANGO. THIS PRICE INCLUDES ADVERTISING COSTS TOTALING $465, PLUS $400 DOLLARS
ADDED ON FOR DEALER PROFIT OR A TOTAL OF $31,696. I WASN'T AWARE OF THE ADVERTISING COSTS AND SAID I WOULD NOT PAY THE EXTRA $400. THEY FAXED ME THE ACTUAL INVOICE, AND I SEE THE DEALER HOLDBACK AT $1019. I AM SURE I CAN GET THE VEHICLE FOR $31,296 AS IT IS ADVERTISED AT THAT FOR A BIG SALE THIS WEEKEND, I AM WONDERING IF I COULD GO LOWER, OR SHOULD NOT GET GREEDY AND TAKE THIS OFFER? THE DEALER SEEMED A BIT UNCOMFORTABLE WHEN THEY REALIZED I FIGURED OUT THE HOLDBACK OFF OF THE INVOICE, AND MADE IT VERY CLEAR THAT THEY DID NOT WANT ME TO GO TO ANOTHER DEALER WITH MY INVOICE AND HAVE THEM LOSE MY BUSINESS.

tommorris

I am about to buy a '99 Honda Odyssey. Should be on the lot in a week or two. I'll have no trade-in, so it'll be a straight purchase deal. No deal has been struck and no negotiations have begun. Now, this is bound to be a high-demand, short-supply vehicle. The sales consultant at the dealer already mentioned that there won't be much wiggle room on the price. OK.

My question is, what are the other items I can reasonably knock down? Can I ask for all or a portion of the hold-back? Can I ask for some relief on the destination charges or dealer prep? Can I ask for the dealer to eat the advertising costs? My worry is that the dealer will stonewall me because there are plenty of people in line behind me who also want the car and may be less willing to dicker. What is the best strategy for negotiating the best deal on a high-demand car? I can hear the laughter right now.

CarMan@Edmunds

Richard927, the incentive information the we list here for Chrysler is correct. If you would like, you can verify the consumer incentive that we list for the 1999 Jeep Cherokee right at Chrysler's own web site. Click here to go to the current Jeep consumer incentives page: Current Jeep incentives. As you can see they list $1,200 on 1999 Cherokee SE and Sport models. The confusion between you and the dealer may have come about because this incentive is available with leased units only. This is what is called Consumer Lease Cash. The $500 Dealer Cash that we show for the '99 Cherokee is also right. But as you mentioned this money goes directly to the dealer and he does not have to tell you about it or share it with you if he doesn't want to.

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CarMan@Edmunds

JOBE, considering the fact that there aren't currently any incentives on the Dodge Durango I'd say that if you can purchase one for dealer invoice plus $400 that you are getting a pretty good deal even if you have to pay their advertising charges.

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CarMan@Edmunds

Johnson41, I am afraid that you are going to have to be a little more specific before I can help you out. You did not tell us what car or truck that you are interested in purchasing. If you let me know, I'll tell you what I think.

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CarMan@Edmunds

Tommorris, as you mentioned the 1999 Honda Odyssey is bound to initially be very popular and in very short supply. There has been a great deal of hype surrounding this new model. I'd say that at first you will have a hard time getting the dealership to come down much off of MSRP. You certainly will not get any dealership to dip into their holdback in order to make a deal. You may be able to get them to budge a little on their dealer prep charges, but destination charges are not negotiable. Not all dealerships charge their customers for their advertising charges. This is something that you also may be able to get out of paying if you insist. There are probably going to be many people who will be willing to pay full MSRP and whatever charges the dealer adds in order to get this van when it first comes out. Unfortunately, this fact will not leave much room for anyone to negotiate in the beginning.

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kip4

Carman, Can you tell me the dealer incentive, and rebate programs for 98 Volvo S70 T 5 ? One dealer was trying real hard to move this car. Offered 1000 below invoice. Claimed 1000 was his incentive. Thanks very much for any help. Kip & Terri .

richard927

This is inexcusable! I posted a new topic last week (#910) that dealt with this info, and that topic has now been removed (don't believe me, sort the topic list by number--910 is gone!), while you present MY answer back to me here!

Your readers might care to note that the Chrysler site was updated on the 16th as a RESULT of my complaint! (Take a look at the incentives page of www.jeepunpaved.com and note the update date).

But the worst of it is that you are now saying that the Edmunds Customer Rebate page MAKES NO DISTINCTION between lease offers and sales! What good is this information? I go to a dealer to BUY a car and tell him I know there is $1200 in Customer Rebate and he tells me I am wrong (this is what happened to me thanks to Edmunds) because that is just lease money (cap reduction).

I am very offended by your site's reponse to my criticism (which at least has been politely presented).

Good luck using Edmunds info to increase your bargaining position everybody!

Nancie

In response to your e-mail regarding the removal of your topic 910, I am here looking into what happened. But, from the looks of it, nothing sinister is going on. Your topic was probably removed because it was redundant. You asked a question, we answered it. We do not remove critical posts or topics created by users. A quick tour through all our conferences and topics will demonstrate that. Besides, it behooves us to listen to our users...otherwise, we wouldn't be much of a consumer site.

We have thousands of topics oand we do our best to keep things organized, topic lists short, and free of redundant topics.

It seems totally appropriate that our hosts would respond to your question here first. This is where you posted the question initially. It would be labor intensive for us to answer the same questions, by the same user over and over.

I'll double check to see what exactly happened. But, I'll bet it's merely a housekeeping matter and nothing else.

Nancie Meng, Director of Community


FYI, we are not responsible for the Chrysler site.

Nancie

Make certain when you read the incentives and rebates pages that you note the following:

Incentives and rebates are programs offered by the manufacturers to increase the sales of low-selling models or to reduce excess inventories. Rebates can take the form of either direct cash back or low-rate financing offers. If both financing and cash are offered for the same model, the buyer must choose which he or she would prefer.

While manufacturers' rebates and low financing are passed directly to the buyer, dealer incentives are passed on only to the dealer -- who may or may not elect to pass the savings on to the customer. Frequently, the salesperson will not even be aware of dealer incentive money, so buyers should speak to the sales manager about participating in dealer incentive programs. Deduct the amount of the dealer incentive and customer rebate from the invoice price to determine the true dealer cost.

All programs listed...are national or large regional programs. There may be additional incentives and rebates available in your area sponsored by the manufacturer or regional dealers associations. Likewise, sometimes a "national" program may exclude certain regions. If a particular car is selling extremely well in your region, the rebates may not be available. For example, General Motors programs listed below exclude California, Idaho, Oregon and Washington, though other programs may exist in those states.

Often consumers rush to read the lists of rebates and incentives without understanding how they work. Hope this helps.

Nancie

richard927

I suggest that Edmunds add a line that specifies that the Customer Rebates may or may not apply to the purchase of new vehicles but instead may only be applicable to leasing deals. Your current page, even as you cite it in your posting, makes no mention of "leasing" and you do not distinquish between "leasing" and "purchase" "rebates", although I am sure you agree that it is VERY important to know which you are talking about with a dealer.

richard927

Nancie, the appropriate response to any housekeeping issue would have been to MOVE my posting to this topic, if you felt this was the thread it belonged in.

Respectfully, I ask that you post it here now.

kip4

Is there a chance you could respond to my question? While Clinton is still in office? Or, do I have to write something critical to be acknowledged?

dealmaster

Oh wow, what am I doing here, not back in topic #54 where I belong.

I want to point out that rebates are not discounts. They are actually a form of profit sharing with the manufacturer (originally derived fom the interest from special accounts set up in their respective "captive banks"). Rebates are therefore shown as additional money down on the deal, and the amount is taxable because it is not subtracted from the actual sale price.
This money may also be utilized by the "house bank" to be used on interest buy downs, hence the incentive of super low interests rates in lieu of the rebate. This use of rebate money has overcome an old legal glitch, so that lease incentives can utilize rebates, where they hadn't been able to in the past. Richard 927, I think you'e getting a little confused, or perhaps you're reading too much into what is really a simple concept. Oh, and by the way, what makes you think leasing and buying are so different. As a Auto Sales Manager, I teach my people to view leasing as an alternative method of purchase.

richard927

Dealmaster said: "Richard 927, I think you'e getting a little confused, or perhaps you're reading too much into what is really a simple concept."

In what way am I confused? or mis-reading this simple concept? If I understand you, you believe there is no difference in $1200 "cap reduction" money versus "no money" on a cash purchase. Because that is what we are talking about.

Dealmaster said: "Oh, and by the way, what makes you think leasing and buying are so different. As a Auto Sales Manager, I teach my people to view leasing as an alternative method of purchase."

Oh there's a big difference, when you lease a car, you have to give it back (or buy it) at the end of the lease period; if you purchase the vehicle, you get to keep it forever (no matter how long it takes you to pay off a note, which is a separate issue, isn't it?). But I am surprised that you didn't know that. But if you are interested, this site explains in great detail all the differences between leases and purchases.

This site specifically says, (1) negotiate the price of the vehicle first (independent of whether you are buying or leasing. (2) deduct any incentive or rebate money. (3) etcetera.

My underlying question was actually pretty simple, if I lease the Cherokee, I get to deduct 1200, if I buy the Cherokee, I have to pay 1200 more. Shouldn't the Rebates and Incentive Page reflect the difference between lease reduction money and checks sent to the buyer's home after the purchase? That's a yes or no kind of question, by the way....

CarMan@Edmunds

Dear Kip & Terri, there is no need to be sarcastic. You asked your question yesterday and I am answering it only one day later. Edmunds is not a real-time chat room. Our hosts check in once or twice per day in to answer users questions and your patience is appreciated. In answer to your question, Volvo does not currently have any national Dealer Cash program that I am aware of. They do, however, have lease support on 1999 S70 & V70 models. It is very possible that in some areas Volvo has provided their dealers with additional cash to help them move their left over 1998 models.

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aschwartz1

Where are dealer(not customer) rebates listed

bridgeman

Does anyone know which dealer incentive applies to the 1998 Chevy Express 1500 conversion van?

Nancie

...my husband agrees with you. He has leased cars many times. He approaches the whole process as though he were buying the car (especially since he might buy the car at the end of the process).

Is it fair to say that knowing the rebates, incentives, etc. is like having chips....information you can use to negotiate with a dealer...The dealer has a choice whether or not to meet your price. If he/she doesn', you can go to another dealer?

Nancie...I don't know anything about cars...just running discussion areas. :-)

Nancie

Richard927, as I told you in e-mail, I've asked that your topic 910 be restored so that I can see what happened and make a determination.

richard927

Nancie,
I see that topic 910 has been restored to the Smart Shopper forum, and would encourage anyone interested to take a look there and share your opinion on what I consider a significant issue.

Thanks,
richard927

CarMan@Edmunds

Aschwartz1, the Dealer Cash that is currently available on certain models is listed right on the Edmunds Incentives Page, just down a little further than the Customer Cash. Click here to go to the correct page, Current Incentives and Rebates, and then scroll down until you see what you are looking for.

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CarMan@Edmunds

Bridgeman, I believe that Chevrolet Conversion Vans are G Vans equipped with the YF7 package. There is presently $500 Dealer Cash on 1998 Chevrolet G Vans w/YF7, but no Dealer Cash on 1999 models yet.

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dealmaster

...Looks like I'm talking to you at two sites.
Wow! Do you have a lot of learning to do. NO, you do not have to keep a financed car forever, as a matter of fact Banks are currently extremely concerned about the popular 2 to 3 year trade (or Itch) cycle that most buyers are in. Hence the trend to super low interest rates on short term loans. This is to make people keep their cars for the duration of the loan so that the bank doesn't have to forgive all that interest on a "closeout". In a sense, most new car buyers are writing their own lease, and losing out on the "back end".
Why don't you take my advice and try working out your purchase as a lease, but approach it as an "alternative method of buying". It'll work.

trish4

My husband and I were dealing for a 1998 Isuzu Trooper Performance package + moonroof,etc. I learned from Edmund's that there is currently a dealer incentive of $1500 - $3000 until 11/2/98 (at another sight, this incentive is effective until 12/31/98). I decided to see just how honest our dealer was and I asked him how much incentive is on the Trooper. He told us $900...now, is that possible? When I requested a copy of his $29,000 out-the-door dealer offer, he proceeded to inform us that the "government picks up these legal papers every month" and that he'd violate laws by copying it...any comments on this...well, remark?

C13

trish:

Wow, is your dealer a [non-permissible content removed]. I don't even think my former employer would have pulled one like that. I have no doubt that others will correct me if I'm wrong, but it sounds like your guy is engaging in what we in the biz call 'lying to the customer', which, at my present store (sleazy enough to gag a maggot, I assure you) is cause for dismissal. I suggest that you find yourself another dealer.

richard927

Trish,

That's an amazingly disgusting situation!

Here's my buyer's info (unsuccessful) on Troopers.

A dealer here showed me a $31K MSRP Trooper loaded out with all that stuff. He readily admitted to $2K in dealer incentive. I hemmed and hawed (more vehicle than I was looking for), so he took me out back to show me to base S model 98 Troopers fresh, according to him, from the railyard (not even prepped).

I had him fax me the invoice next day, and it shows MSRP of $28746 (includes destination). His invoice is one of those that adds on the holdback, advertising and floorplan, and so the "invoice" was $25830, he offered that price plus $100, minus $2000 in incentive...in other words, his offer was $23930. Of course, that's not the real invoice according to Edmunds, but hey.

I didn't do the deal, but it sounds very different than the dealer you are talking to.

Just some FYI

jimh2

I am looking to buy a Plymouth Grand Voyager in the Chicago Area. In newspaper advertisements many dealers list a loyal customer rebate and a recent college grad rebate. Are these really rebates or are they just come-ons.
Are these rebates dealer or manufacturer generated? Are these in addition to the rebates/incentives listed in Edmund's? It seems to me that these rebates should be negotiable to anyone, after all our our money is green. Your thoughts please.

trish4

Richard,
Thanks for the information!

CarMan@Edmunds

Jimh2, I know for certain that Chrysler has a $400 College Graduate rebate available on all models. I am not aware of any sort of loyalty incentive on this van, but Chrysler does run this sort of program from time to time. So, it is possible that this is a manufacturer sponsored program as well. If you are eligible, you should be able to combine both of these rebates with any other incentives that are presently available on the Grand Voyager.

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cayonr

I checked out Edmunds Rebate and Incentive page looking for some informantion on the Jetta, there was no rebate or incentive listed. But in the Automobile section of the Sunday paper there was listed a $750 to $500 factory to dealer incentive for '98 and '99 models through 10/31. So who is right? Is there really an incentive in effect or was CarBargins of Washtion, D.C. incorrect? Where can I find the 411? Thanks all

Allen

setup1

I notice in the Edmund's listing of Incentives that the Mitsubishi Eclipse GS has a $750 incentive. The dealer I am working with acknowleges this is true, but says that he cannot use it on a lease. I am turning in a 1995 (end of term) that is 10,000 miles under the lease agreement, has brand new tires...the dealer says he can do nothing (this is, btw, my third Eclipse from this dealer)..Is is true that this Incentive cannot be used on a lease...only on a purchase??
An answer ASAP much appreciated

CarMan@Edmunds

Cayonr, you are absolutely right. Some how the Volkswagen information got erased from our Current Incentives page. I will look into that problem first thing tomorrow. In the meantime, I believe that there is currently $750 Dealer Cash on 1998 and $500 Dealer Cash on 1999 Jettas through the end of the month.

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CarMan@Edmunds

Setup1, the dealer was probably telling you the truth in this case. Mitsubishi usually provides lease support in the form of lower lease money factors rather than lease cash. Since they have already provided customers with a discounted interest rate they probably won't let lease customers use the $750 as well. Sorry to hear that the dealership won't cut you any sort of break for turning in your current vehicle in such good condition. Unfortunately, dealers are under no obligation to do so and usually don't.

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setup1

Thanks for the quick response! I just find it hard to believe that it has taken two months to get a car (I have not been asking much...just a GS with leather, which can be and is being dealer installed)...The sales manager has been having me call him twice a week for this two months...now he got a car from another dealer and it was to be ready friday...it still is not ready. I have not signed any papers, so was hoping the sales manager would give me a better deal. Rather, I feel as though I have been "bumped"...the price of the leather being more than I was told about a month ago. I am almost tempted to walk over about 500 feet and buy a Cougar!

Thanks for your help

setup1

Well..I am making progress...I saw my car today..only one small problem....the leather interior was put in the wrong car!!! (not mine)

jimh2

In Edmunds listing of dealer incentives, the Plymouth Voyager has 3 levels of incentives: lowline, highline and premium. What do these represent and how does one determine what the dealer is receiving?

setup1

Sheesh...I finally got the car last night! I went in yesterday about 12 and noticed the leather was STILL not in...walked into the dealership..to the salesmanger's office and he a a "Kodak Moment: look on his face. I said from the door (a little loudly) "it has not been touched, " and stormed across the floor, out the door and left a bit of rubber as I drove away. Miraculously, I had a call on my answering machine when I got home suggesting I come in at 4PM to pick up the car....funny, (NOT) what it can take to get things done.

I must say, that the dealer installed leather which is installed on back seat and doors as well as front) is dramatically nicer than factory which is also only put on the front seats...for about $300 more.

jn1

I have a friend who is interested in purchasing a 4 DR 1998 Honda Civic LX. She asked me to come along since I recently purchased a car at a very good price using all of my Edmund's information. Before we went shopping, she pointed out a couple of ads showing the exact model for only $400 over cost (not invoice) based on all the Edmund's information I had regarding holdback, dealer incentive and rebates. I read the fine print and eventually went to these dealers to see if they would try to pull some kind of scam. To my surprise, they basically stuck with the price listed. Even those dealers that didn't list $400 over cost were very willing to sell in that price range.
Is there some kind of hidden dealer incentive that is not posted on Edmund's for 1998 4DR Honda Civic LX's that I'm not aware of. Or is there some other incentive, rebate, or discount being kept from the public? She's looking to purchase in the Chicago area or the surrounding suburbs. All the tax rates they've quoted us have been verified so they're not scamming us on that. Are they just willing to make a $400 profit without putting up a fight for more?

nguyeneh

Does anyone know whether Mitsubishi will extend the low financing program and the $4500 dealer holdback on the '98 Diamantes? I see that the offer expired 10/31/98 and nothing new has come out.

I'm looking at the '98 Diamante LS with "the works." After calculating the holdback and dealer incentives, adding about 3% (liberal estimate), I'm looking at paying about $27K before tax & title. Does this sound reasonable?

Thanks!

CarMan@Edmunds

Jimh2, I think that the Dealer Cash that you are referring to varies depending upon the trim level of the model that you purchase. I believe that the $300 Lowline incentive is essentially for Base models, the $500 incentive for mid-level models, and the $700 Premium incentive is for loaded models.

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CarMan@Edmunds

Jn1, Honda is not currently providing their dealers with any incentives on the Honda Civic LX. The only program that they currently have is $200 Dealer Cash on 1998 DX models, which expires today. I haven't seen the new Honda incentives yet but I don't expect any dramatic new programs on the Civic.

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CarMan@Edmunds

Nguyeneh, the $4,500 that you mentioned is Dealer Cash. This is different than the dealer holdback. Mitsubishi's holdback is approximately 2% of the vehicle's MSRP not including any options. When calculating the dealer cost you must subtract BOTH the Dealer Cash and the holdback. Also, I don't believe that you are allowed to combine the special financing program with the Dealer Cash. We will post the new Mitsubishi incentives as soon as we can. I suspect that they will continue their 1998 programs without many changes, but you never know for certain until you see the actual program.

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Blend_3

I'm planning to buy a 1999 chevy prizm in March 1999, but noticed that their are rebates and .9% financing thru the end of 1998. Does anyone know if GM will have this rebate in March 1999 or should I just get the car now?

Any advise would be appreciated. Thanks.

Mr_Shiftright

Dear Blend,

Car_Man has answered your question in your duplicate post. Once is enough at Edmund's, we're paying attention, don't worry!

CarMan@Edmunds

Jjliou, Mazda will have new incentives on the Protege. We are working very hard to update our inventives page as quickly as possible. Check back next week and we should have the information that you are looking for.

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pavan11

all i need to know is,whether mitsubishi is financing 0%apr for 1998 eclipse turbo for 3years
i have seen this in incentives and----at edmund site.could you tell me how can i approach mitsubishi for financing for my newcar.

CarMan@Edmunds

Pavan11, even though Mitsubishi's programs expired on October 31st, they have decided to continue the 0.0% financing on 1998 Eclipses through January 4th, 1999. This rate is currently available for 36 month terms. All you have to do is to ask the dealership about Mitsubishi's special financing program and they will tell you how to apply.

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