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Rebates, Incentives, APRs - Questions & Comments



  • pjd6pjd6 Posts: 1
    Toyota had an incentive in January for new Tacomas--0%APR or $2000 cash back. We went to the dealer to buy a Tacoma; they didn't have the model/trim we wanted, so they put in an order for one ($25K MSRP). The dealer would not close the deal, because they did not have a VIN for the vehicle; they said they could not guarantee the incentive would continue after 1 March, would not talk trade-in, price, etc. Well, the special incentive for Tacomas is history. My concern is that when we go back to the dealer to close the deal they will take $2000 off the MSRP to make up for the lost incentive but won't give us a better deal because they already did us a favor. When we go back to the dealer how can we negotiate both the cash back plus a good deal from the dealer?
  • lrguy44lrguy44 Posts: 2,197
    Since that incentive was a factory incentive the dealer needed the VIN to make his claim to Toyota and get the $2000 cash back. You can try to negotiate a good deal, but the $2000 is gone.
  • delthekingdeltheking Posts: 1,152
    Dont worry,toyota is about to offer great incentives this March pretty soon!! So just wait and you can snag a great deal !!
  • sirbellysirbelly Posts: 2
    Hi all,

    I'm negotiating a car sale now and there is a manufacturer's rebate as well. Instantly the salesperson said the car sells for $30,000 but there is a $2,000 manufacturers rebate so your price would be $28,000.

    All the reading I've done says the manufacturers rebates should be factored in post car sale price and tax because manufacturer's rebates should be applied towards the loan as part of the down payment.

    Is the salesperson trying to be cleaver and make more money? I ran the numbers and the amount of interest paid on the loan is greater if I go the route the salesman is trying to present.

    Thanks for any information.
  • steine13steine13 Posts: 2,629
    Technically, the manufacturer's rebate -- if it's a "rebate to customer" as most are -- is literally "cash back" after the sale. Therefore, sales tax is computed before the rebate is taken into account.

    Customer rebates are published by the manufacturers, so all you need to do is go to their website.

    In reality, there rarely is "cash back" as the customer typically applies the rebate at the time of the transaction. By "apply" I mean it counts as if the customer brought a check for that amount.

    As far as manufacturer's rebates should be applied towards the loan as part of the down payment -- that's completely up to you. I've taken rebates and paid cash for the rest, and I've taken rebates and paid some cash and taken a loan for the rest.

    The best way to think about it is this: The rebate money is your money that you bring to the dealership. You can do with it whatever you want... except take it home with you if you don't buy the car ;->

    Good luck,
  • qbrozenqbrozen Posts: 23,841
    If you tell us what car, we may be able to help you better.

    '17 F150 Crew 2.7; '67 Coronet R/T; '14 Town&Country Limited; '09 LR2 HSE. 44-car history and counting!

  • sirbellysirbelly Posts: 2
    edited March 2010
    2010 Prius 2.

    THe numbers I used were just for example.

    $750 Customer Cash Back Savings is from Toyota Motors.
  • british_roverbritish_rover Posts: 8,458
    If I was looking to buy a Prius now I would be offering Invoice, minus holdback, minus all incentives, minus another 1,000 or so. Yeah it is the only Toyota really selling now but Toyota is still in a sales free fall.
  • ccappaccappa Posts: 29
    Edmunds is showing two incentives for 2010 328xi sedan. The $2500 "Spring Drive Credit" and an $1840 All Wheel Drive Credit.

    BMW's website only lists the $2500 Spring Drive Credit, no mention of the All Wheel Drive Credit. The dealer I've have contacted by e-mail also only mentioned the Spring Drive Credit.

    Is there something I'm missing, or is there in error in the Edmunds listing?

  • rayainswrayainsw Posts: 2,975
    my guess is the bolded phrase:

    $1840 Cash to Customer start: 03/02/2010 end: 04/30/2010 Get Dealer Pricing
    Restrictions $1,840 All Wheel Drive Credit can be used in conjunction with Lease, OwnersChoice, Retail Finance or Select contracts. It can also be used for customer purchases not utilizing leasing or financing through BMW Financial Services. Please see your dealer for details.
    Comments Dealer participation may vary. Incentives and Rebates are provided subject to the terms of our Visitor Agreement.
    2016 BMW 340i
  • Kirstie_HKirstie_H Posts: 11,052
    Are the Toyota incentives tempting you? A reporter wants to know. Please respond to [email protected] with your thoughts no later than Tuesday, March 23, 2010.
    Jeannine Fallon
    Corporate Communications


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  • johnk3rdjohnk3rd Posts: 1
    Audi listed on as providing an incentive of 2.9%APR for 60months on the purchase of a 2010 audi A6. The listed audi premier dealership would not honor this and offered only an interest rate of 3.9%APR for 60 months. I have a credit score of 810 .What recourse if any would anyone recommend?
  • lrguy44lrguy44 Posts: 2,197
    Find another Audi dealer that will participate.
  • Kirstie_HKirstie_H Posts: 11,052
    This might entail some time on the phone calling other dealerships, but that's really the only thing you can do. Unfortunately, you can't force the dealership to participate in that incentive program. I'm not sure what the process is in deciding which dealerships will or won't participate, but perhaps they're moving enough stock to not need to provide incentive?


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  • kyfdxkyfdx Posts: 86,495
    It's typical of a lot of Euro make dealers... They are participating in the incentive program.. just marking up the promotional rate by 1% to make extra profit.. The bank pays them about 70% of the extra interest, upfront..


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  • can50turtlecan50turtle Posts: 11
    edited September 2010
    Questions ... I'm interested in purchasing a new car for $28,000, my trade-in is worth $25,000. So, I planned on paying the difference plus taxes etc myself. But, the car has a $1,000 rebate if you finance through their identified firm. Could I take advantage of that? That would mean the car's selling price would be $27,000 ... so I'd be financing $2,000. Is there a minimum amount one must finance before they can take advantage of rebates like this? If not ... the financing percentage is NOT 0%. Would I be able to simply pay off the $2,000 loan the next month, or would I need to really pay across 36 months? Thanks.
  • Kirstie_HKirstie_H Posts: 11,052
    It'd probably help if you let us know what vehicle you're looking at. What I've gleaned from some of our salespeople is that, generally, when you take the rebate for financing, you have to keep the loan for something like 90 days before paying it off. As far as a minimum... no idea, but post the vehicle and maybe one of our salespeople will have an idea.


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  • Does anyone know if Suburu is doing any financing deals beyond 36 mos?
  • I am in the marker for a new car and was looking at a 2010 Honda model that qualifies for 1.9% APR. The dealer ran my credit and Honda Financial Services classified me in a credit tier" that qualifies for the promotion, but the dealer wouldn't honor it saying that the best he could do is 3.74%

    I know dealers often tack on interest rate rates from loans, but this one is advertised nationally by Honda Financial Services for qualified buyers, which by their own accreditation I am.

    To me this seems to have crossed the line from hard negotiation into "bait and switch". Anyone else had any similar experience and/or advice.
  • jipsterjipster Louisville, KentuckyPosts: 5,496
    Maybe you were at the low end of that "tier"? I'd try another Honda dealership.
  • Even if I were at the low end of Super Preferred, that would put me squarely in preferred which also qualifies for the promo...

    What concerns me the most is that neither Honda Financial or Honda Corporate customer service is willing to do anything... not even issue an apology. If the issue were just a bad dealer, I'd just go to a different one, but I have spoken to 3 different "customer service" representatives at Honda, and they don't even feign concern. They insist that I have to take up the problem with the dealer, despite the fact that the offer is from Honda Financial.

    I wonder how often dealers add APR points onto loans for people who qualify for nationally advertised promo rates... There is clearly an institutionalized denial of responsibility when this happens, which gives great cover for dealers and thereby generates risk free opportunity for them.
  • jwilliams2jwilliams2 Posts: 910
    edited October 2010
    Honda usually states in the fine print that "Not all Honda automobile dealers participate in these programs." Perhaps this is one who doesn't participate.

    I'm not sure what Honda can do to an independently owned dealer, although you have to wonder how long any dealer can stay in business this way. They must lose lots of sales by not being competitive.

    I would simply find a dealer who will honor the program.
  • jipsterjipster Louisville, KentuckyPosts: 5,496
    They insist that I have to take up the problem with the dealer, despite the fact that the offer is from Honda Financial.

    Maybe someone else can chime in here, but I don't understand why the dealership wouldn't let you buy the car at 1.9%... it's not their money. Maybe the dealership has some type of restrictions on how many low interest car loans they can sell per month... who knows. Or maybe they are just trying to get more money out of you. Dealerships are independently owned and have flexibility in how they manage their loans. I would still try another Honda dealership though, as this does sound more like a dealership issue than a Honda Financial. Though why Honda Corporate doesn't do more is also puzzling.
  • jipsterjipster Louisville, KentuckyPosts: 5,496
    edited October 2010
    Honda usually states in the fine print that "Not all Honda automobile dealers participate in these programs." Perhaps this is one who doesn't participate.

    Yeah, this dealership is hoping 01010000082 will take the 3.74% loan. If they say, "Sorry we don't participate in the 1.9% financing program", then they know he'll buy elsewhere.
  • This dealer participates. They advertise it all over their website.

    Maybe I'm reading too much into this, but my worry is that Honda Corporate is intentionally turning a blind eye to this dealer tactic, which is either in violation of truth in advertising laws or (if their legal department is good) as close to it as legally possible.

    Given the relative price transparency that the internet provides, taking a cut of elevated interest rates is probably one of the few remaining safe-havens for dealer profit, and it's an easy and free way for Honda to keep their dealers happy.

    Still it rubs me the wrong way... particularly the lack of response from Customer Service. They at least supposed to pretend to be concerned in these situations.
  • tallman1tallman1 Posts: 1,874
    This dealer participates. They advertise it all over their website.

    Okay, that just doesn't make sense. If what you are saying is true, contact your state's attorney general.

    Do you have a local TV station that takes on consumer issues?

    There has to more to this story.
  • kiramakirama Posts: 15
    I contacted a local dealer who participates in truecar, but they never have prices listed, on the list of dealers it simply says 'contact this dealer for your price', I did. And I asked him for his price. It came in almost 1k higher than the other two dealers listed on the site. I asked him to explain and he said 'here is how we calculate it' we deduct dealer incentives from the invoice price and add back $600. I showed him what the holdback was and he said 'we can't give you a discount based on that since holdbacks are not guaranteed' and he went into some elaborate explanation as to how they only get the holdback if they sell x # of cars in a given period. None of that makes sense to me. Is there any validity to what he is saying? It was clear from the pricing offered by the other two truecar dealers they were taking the holdback into account.
  • dtownfbdtownfb Posts: 2,918
    here's an article on the dealer holdback -
  • I'm looking at a 2011 Silverado Reg Cab4x4 in Maryland. Edmunds shows a $2000 rebate + $2005 rebate if financed through Ally. I'm now also seeing a $1500 "Holiday" cash (just today) being advertised. Does anyone know if that is in additional to the $4005 in rebates already posted??

    Any help would be appreciated.

  • kiramakirama Posts: 15
    I bought a new car in November, and a few weeks ago received a check for a $1,000 rebate that I didn't expect to get, but I just figured that they realized that I was due a rebate and I cashed it. Just the other day I get a letter from the dealer asking for the $1,000 back stating that I didn't 'deserve' it because I had opted for low interest financing in lieu of the rebate. Do I legally have to return the $1,000? and if so- since I have already spent some of it, can I ask them to add it on to my auto loan?
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