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Rebates, Incentives, APRs - Questions & Comments

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  • somethingsomething Member Posts: 10
    Has anyone out there heard if GM will extend/raise/cancel the current $1000 rebate on 1999 Ventures after 31 Dec?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Funny that you should ask that, something. I just found out today that General Motors has extended all of its current 1999 Chevrolet Dealer Cash, Consumer Cash, and APR incentives through February 28, 1999. Keep in mind that even though this program is not scheduled to change until then, GM is notorious for frequently making mid-program changes.

    Your Co-Host
  • joecarojoecaro Member Posts: 44
    When are you going to post the 99 troper info? They have included TOD in the base S model as near as I can figure, and the performance package has been changed for 99. I'd really like to see some new invoice #'s before I make an offer. Help?
  • pwillikerspwillikers Member Posts: 1
    It's 11/20 and the Audi salesman just told me that Audi has offered increased dealer incentives on 1998 A4's. Edmunds does not yet have the data.

    How much and what are the terms of this incentive? Please respond quickly. I'm about to enter into price negotiations.
  • somethingsomething Member Posts: 10
    Thx for the info on the rebate extention. Where did you see that at? I've had two dealers tell me they were pretty sure that would happen but noboy said anything about Feb. I assume this means the current $1000 on 99 Ventures are extended.

    I also heard GM is famous for changing their rebates without notice.

    Please tell me where the rebate extention is documented.
    Thx
  • lee18lee18 Member Posts: 45
    Does anyone know, if a car is bought using a dealer transfer (found on the computer on another dealer's lot and transferred), does the second dealer get all of the holdback? I thought the holdback was partly to pay the dealer's fincancing costs to keep a car in inventory. If it gets shipped to another dealer, how does the first dealer pay the interest and other expenses for that car? Or is that transferred as well.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Pwillikers, I will check into the Audi incentives and see what I can find out.

    Your Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Lee18, that's a good question. I don't know for certain, but I think that the dealership that actually sells the car gets the holdback. I'll make a few calls and see if this is the case.

    Your Co-Host
  • trianj1trianj1 Member Posts: 4
    Host

    Thanks for your continuing help. I am interested in the current northeast promotion of Merc Sable in which they throw in the Touring Edition of moonroof, ABS, and Leather at no charge. I have been told that this offer has been extended to January 12,1999. Is that true and does the car have to be ordered or actually purchased by then. Thank you
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Trianj1, the majority of Ford's incentives (including regional programs) are good through January 14, 1999. This is probably the case with the Mercury Sable regional option package promotion. You actually have to purchase your car before this program expires in order to take advantage of it. If you order the vehicle, but don't take delivery of it until after the program has expired then you will not be eligible.

    Your Host
  • tricks2u2tricks2u2 Member Posts: 2
    Was looking to buy 98 mercury mountaineer. On Saturday 11-21 I found $1250 incentive to dealer and 0.9% financing on edmunds web page dated 11-19. I was quoted $1900 below invoice ($2000 dealer incentive)and 0.9% finance for 48 months at three dealers on Satuday, Monday and Tuesday of this week. On Tuesday afternoon when I went to sign papers I was told that the financing had expired on 11-12. The other two dealers told me the same thing. I rechecked edmunds web page which is now dated 11-25 and shows 1.9% finanacing. What is the real scoop on incentives and financing for this vehicle?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Tricks2u2, I'll check into this for you and let you know what I find out on Monday.

    Your Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Oh by the way, Lee18, I researched your question a little further and it turns that I was right. The dealership that actually sells the vehicle to a consumer gets the holdback.

    Your Co-Host
  • jonyen98jonyen98 Member Posts: 6
    Do rebates apply only if you purchase from dealer stock? Or can I get the rebate if I special order from the manufacturer,too?

    Thanks.
  • tricks2u2tricks2u2 Member Posts: 2
    Car_Man

    Any word yet on incentives and finanacing for 98 Mountaineers?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Jonyen98, all of the Consumer and Dealer Cash incentives that we list on our Web Site are available on both units that are ordered and units that come from dealer stock. However, if you special order a vehicle you are only eligible for the incentives that are in effect on the date that the vehicle is delivered.

    Your Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Tricks2u2, Ford currently has 1.9% - 4.9% financing and $1,250 Dealer Cash on 1998 Mercury Mountaineer models. Ford also has special lease rates of 6.0% for 24 months and 6.25% for 30 months on '98s. The '99 Mountaineer has 1.9% - 5.9% financing and special lease rates of 1.25% for 24 months and 3.25% for 30 months.

    Your Co-Host
  • amadeus131amadeus131 Member Posts: 43
    Hi everyone, I've been looking into trading my current vehicle for something larger and more powerful. The incentives page lists "0-$1000" customer cash on the '99 Jimmy/Blazer; is there anyone who knows exactly how much it would be on a 2-door 4WD model? (Or at least, how I can find out reliably.) I'm in upstate NY, if it matters. (I'm assuming 0 for 4-door 4WD and $1000 for 2-door 2WD; but I'm curious....)
  • jonyen98jonyen98 Member Posts: 6
    Thanks Car_Man. How long does delivery typically take if I special order? I'm thinking about ordering the Chevy Prizm. I'm participating in the Employee's GMO program through my brother.

    Do you know if I'll have to pay for advertising, dealer holdback, dealer preparation, etc., etc...?

    Thank you for being so helpful.
  • jedimindtrickjedimindtrick Member Posts: 2
    Can anyone from the Edmund's staff tell me what
    incentives are being offered for the Nissan Maxima
    in the Honolulu area for the month of Dec '98? The incentives page says $1000 on a '99 and $2000 on a '98, but I've seen other messages in this forum which indicate that Nissan actually uses ~25 different regions and that incentives may vary by region so I'm hoping to get the most accurate picture I can of what's going on locally.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Jonyen98, GM's employee purchase program has very specific guidelines on how to calculate the cost of the vehicle that you want. See if your brother can fill you in on exactly how this program works. I don't think that you will have to pay ad charges but you may end up having to pay for dealer prep.

    The length of time that it takes to order a vehicle can vary quite a bit. In instances when a consumer is ordering a new or particularly popular model it can take up to several months. However, in this situation your wait should not be that bad.

    Your Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    This is a very good question, Jedimindtrick. It is true that in the past Nissan has divided the country into numerous regions with completely different incentives programs in each. However, it seems that recently Nissan has been making an effort to run their programs on more of a national basis. Still, Hawaii is an unusual market and manufacturers frequently run different programs in this state. It is probably safe for you to assume that Nissan's Hawaii programs are very similar to the ones that we list on our Web Site. We should have Nissan's December incentives posted by early next week.

    Your Co-Host
  • jedimindtrickjedimindtrick Member Posts: 2
    Thanks for the response Car_man. I'll check back
    on the incentives page later this week. Does Edmunds actually acquire information on each individual region (which may be passed on to specific queries) or is the best we can hope for that it will be similar to other regions.

    You're definately right about Hawaii being an unusual market. Perhaps this is topic is better placed under a seperate thread, but dealers here have the stones to price their cars much higher than MSRP (market value adjustment). Refer to the following web page for more information on this practice.

    http://starbulletin.com/97/12/10/news/story2.html

    Can anyone could confirm that dealers in Hawaii don't pay extra delivery fees in addition to the standard destination fee, as claimed by the article. Interestingly, despite the "market value adjustment" the article also suggests that 2-5% over invoice is reasonable.
  • mcurranmcurran Member Posts: 1
    I haven't purchased a new car since I bought my '84 Celica Supra when I came back from Japan from a stint in the Navy. Now I am looking at purchasing a Toyota Solara. What I don't understand is dealer holdbacks and advertising costs and how I should interpret the information. Holdback and advertising are not listed on the MSRP window sticker information, but when a dealer shows the "Factory Invoice", there they are. What I want to know is:
    a) Is holdback a cost that legitimately belongs on the dealers Factory Invoice?
    b) Is advertising a cost that really belongs on a Factory invoice?
    c) Are these charges negotiable like other options or are they fixed costs like Destination Charges?
    I've read the information in Edmund's web site, but I am still not clear on the subject. One dealership showed me his "Factory Invoice" with these items and other invoice costs. When I told him I had no intention of paying out anything for Holdback or Advertising, the negotiations ended very quickly. I would appreciate anyone who could honestly educate me on this subject. Thanks!
  • Mr_ShiftrightMr_Shiftright Member Posts: 64,481
    Dear Mcurran,

    the holdback is the dealer's money. He doesn't hav to give it to you, or even offer it up as part of the deal. The advertising fees are merely a "pack" added by the dealer for extra profit.

    Basically, Edmunds gives you holdback percentages so that you'll know that the dealer makes a profit beyond the "dealer cost"...so you'll know that if you're offering a fair profit of 3-5% over dealer invoice, that there is really an extra 3% or so in there for the dealer over and above your offer.

    The trick is to look at the whole picture, not each item the dealer lists. Calculate his cost with the information we give you and offer a fair profit over that. If the dealer lets you walk out of the showroom and doesn't call you, you've probably offered less than he is willing to sell for.

    So use Edmund's prices to calculate dealer cost and work from that number. Good luck.
  • rdingrding Member Posts: 1
    Car_man,
    edmund lists the incentive for 99 Hyundai ELantra
    as 750$ rebate and special financing rate. Does it
    mean I can get combined incentives?
    Thanks
  • kingjrkingjr Member Posts: 3
    I read one of the questions earlier and the answer concerning holdbacks based on dealer trades. As I was dealing for a car tonight, I was working with a dealer that had done a dealer trade for me. We were in the dealing stage and I mentioned holdback and the sales person told me that holdback was lost when a dealer did a dealer trade.

    Of course, if that is the case, that would mean that both dealers would lose the holdback and would not make any sense for a dealer to even do a dealer trade.

    Can anyone confirm or deny the above?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Rding, I don't believe that the special financing program can be combined with the $750 rebate.

    Your Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Unfortunately, Jedimindtrick it is almost impossible to collect all of the Nissan incentives from every region in a timely manner. Nissan has well over 20 regions and usually revises their incentives at least once per month. Fortunately, like I mentioned before they are making an effort to make their incentives the same across the country.

    Your Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Kingjr, it's my impression that dealers do not lose their holdback when they trade with another dealer for the vehicle that you want. I am not positive about this, but this is what several former dealership managers have told me.

    Your Co-Host
  • kingjrkingjr Member Posts: 3
    Thanks, car_man. It doesn't make much sense to do dealer trades if they do. 'Preciate the info.
  • pbharrispbharris Member Posts: 1
    can someone tell me if it's better to buy in December or January? Also, when does edmunds list December Toyota incentives?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Mainer, Toyota's new incentives will definitely be up on our web site by Friday, but I don't expect them to have much support on any of their models.

    Personally, I would say that you are probably better off purchasing in December rather than January. Dealerships will probably be trying to sell more cars than usual right before the end of the year. As a result you may be able to negotiate a better deal than you would have been able to in January. Just a theory, but it makes sense to me.

    Your Co-Host
  • victor4victor4 Member Posts: 1
    Toyota Camry 98/99 Good price?

    Can anyone tell me what is a good price for a new Toyota camry 98/99. Give or take a couple of hundred. I have made my homework but just want to make sure wether I have missed anything.
  • Mr_ShiftrightMr_Shiftright Member Posts: 64,481
    Dear Victor,

    We don't know the options or model you are talking about, so we can't give you numbers, but the formula Edmund's suggests is pretty straightforward, so if you followed directions, you're probably just where you should be on this....Invoice + options +3-5% profit (be sure to add tax, DMV fees and destination charge).

    good luck on your deal,

    Your Co-Host
  • philpicklephilpickle Member Posts: 2
    I need help. I'm considering buying a '99 Concorde Lxi. Any info on any dealer incentives or customer rebates to be offered? Is a $400 advertising fee shown on the invoice basically a profit to the dealer? Is a 3% holdback basically a profit to the dealer and does the figure diminish the longer the car is on the lot or does the dealer get the full 3% whenever it does sell? Any information would be very much appreciated.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Unfortunately, philpickle, Chrysler does not currently have any Dealer or Customer Cash on the 1999 Concorde. The $1,000 Dealer Cash on '98s is the only cash incentive currently available on this car. All of Chrysler's current incentives run through January 4, 1999 so it is unlikely that any new support will be added for the '99 Concorde before then.

    Try not to concern yourself with every little charge that the dealership tacks on to your deal. All of these little fees just serve to muddy the water. Concentrate on the bottom line, that is exactly how much it is going to cost you to drive off in the Concorde that you want. Chrysler does charge their dealers national and regional advertising fees. These charges will vary from vehicle to vehicle, but they typically range from $250 - $450 combined.

    The 3% holdback does not disappear. Despite what you may have read, reguardless of how late in the model year the dealer sells this 1999 Concorde he will get the entire holdback.

    Your Co-Host
  • jonyen98jonyen98 Member Posts: 6
    Dear Car_Man,

    I've visited several Chevy dealership, but none had a Prizm with the options I wanted.

    Because of this, I'm thinking about ordering one from the manufacturer. The problem is that it will take about 10-12 weeks for delivery. That means I will receive the car well after the end date of the rebate (12/31/98).

    Is the car purchase order a legally binding contract, or can I back out of it if Chevy no longer offers the rebate when my car is ready for delivery?

    I just don't think the prizm is worth the price without the $1000 rebate, especially when I can get the Corolla for a comparable price, which has a much higher resale value.

    Does Chevy usually extend the $1000 at the end of every month?

    What if they don't?

    Your expertise is very much appreciated.
  • philpicklephilpickle Member Posts: 2
    Dear Car man, thanks for the info. I'll post back soon.
  • bryan99bryan99 Member Posts: 22
    As I draw closer to purchasing a 99 Tacoma, I am looking for the latest info on Toyota's rebates and dealer incentives. I can't find any info here at Edmunds or on Toyota's web site. Do you know where I can go to be sure to get the most current info on manufacturer rebates? The last one I knew of from Toyota was $800 rebate + $800 dealer incentive on 99 Tacomas. This was supposed to expire on 1/4/99, but they may have withdrawn the offer early. Thanks!
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Jonyen98, I wouldn't worry about Chevrolet doing away with incentives on the Prizm. Obviously I can't guarantee this, but if anything I bet that the incentives on this car will be higher in two or three months than they are now.

    The dealer that you order your car from will most likely require you to put down some sort of deposit. This deposit may or may not be refundable if you decide to back out of the deal, depending upon your signed agreement with the dealer. Even if you do have an agreement that will enable you to get a refund, you still may have a very hard time getting your money back from the dealer. This is frequently the case with cancelled orders.

    Your Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Bryan99, this information should be available on the Edmund's Web Site this week. In the mean time, I believe that Toyota presently has $1,000 available on both '98 and '99 Tacomas.

    Your Co-Host
  • cymcym Member Posts: 12
    I have seen a couple of dealers advertise the $1,000 rebates on the 99 Toyota Tacomas.

    1. Car_Man, or anyone: How do you find out about the dealer incentives? Is this on the sticker, or something you have to ask the sales manager at each specific dealer? I have seen a sticker for the Tacoma that had a $1600 "Extra value package MSRP discount", but when I looked at the price of the options, I noticed that the SR5 LX option was padded by $1600 on MSRP compared to the MSRP in Edmunds! How tricky...

    2. I will most likely have to order my Tacoma 4X4 to get the options I want and I plan on placing the order by Dec. 31. Does anyone know how long it has been taking to deliver the vehicle? I live in the same state that they are manufactured in. Do you think that speeds up the process?

    I really have no trouble waiting, because my 17 year old Toyota 2WD truck (192,000 miles)is just ticking along, but I just hope that they still have the rebate when the new truck is delivered to me. I have been keeping an eye out on info on this truck off and on since last year, and it seems like they have always had some kind of a rebate. I have to wonder if the rebate has something to do with trying to sell Tacomas before the upcoming release of the Tundra truck. Just a thought...

    3. When you place an order, does the dealer get credit for the sale on the day you order it, or on delivery?

    4. Does it make sense that you could argue against paying advertising fees on an ordered truck, since all advertisements deal with what vehicles that are currently on the lot...

    Thanks for any input!
  • bryan99bryan99 Member Posts: 22
    Hi cym, I wrote you private email, but I'll answer a couple of your questions here for others' sake. Dealer incentives are supposed to be "secret" and something that certainly the consumers, and often the sales staff, do not know about. I sent for a consumer reports price sheet on the 99 Tacomas and they included info on dealer incentives in effect at the time. However, these incentive often change without notice, and I'm not sure yet where to get the most current info on this (which is what I asked in #714).

    You are right that the $1600 "discount" really is just a marketing ploy to sell an options package at what looks like a discounted price, even though you couldn't but the pieces of it individually anyway.

    For your other questions, I'll wait to hear from those who are more informed than I. :-)
  • joecarojoecaro Member Posts: 44
    They had that package discount thing on my 99 4runner. The interesting thing was that their inflated price on the packages minus the discount ended up being exactly the price Edmunds has listed for these packages. Verrry clever, and that is why any info you can get here and any other source is so invaluable.

    The more you know the less all the smoke and razmataz of the dealer and manufacturer will confuse you. It sure makes it difficult to know what is "fair" profit to the dealer.
    This is a commodity market. The dealer tries to get you to pay the highest price they can. It is our responsibility to get our best price.
  • richplrichpl Member Posts: 1
    Just wanted to get another opinion. The hold back on this site for Toyota says 2% of the Base Invoice , does this only mean 2% of the invoice price, or 2% of the total invoice price including invoice price for options as well?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Cym, what exactly do you mean by "dealer incentives"? If you mean "Dealer Cash," then you can find the information that you are looking for right here at our Web Site. Technically, "Dealer Cash" is an incentive provided directly from the manufacturer to their dealers. They can use this cash as they please (i.e. additional profit, advertising). However, given the fact that many consumers know about Dealer Cash today, it seems as though dealers are giving these discounts back to consumers much more frequently.

    If by "dealer incentives" you mean the amount of money that the dealer is going to take off of the price of the car that you want to purchase, then this amount will vary depending upon how good at negotiating you are.

    As I have mentioned in other Topics, it is pretty tough to predict what manufacturers are going to do with their incentives in the future with 100% certainty. They usually don't even know what they are going to do for certain until they see their most recent sales results. There is usually some sort of cash available on the Tacoma, so you can probably assume that there will be when your truck is delivered.

    Don't concern yourself with all of the little fees that the dealer is going to try to nickel and dime you to death with. Ask them up front exactly how much it is going to cost you to drive the truck that you want out the door, including all of the fees. Then purchase from the dealership that has the best total price (assuming that you are comfortable with them).

    Your Co-Host

    Wow, you've had your truck for 17 years. That really says something about Toyota reliability. You should be in one of their commercials.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Richpl, I believe that 2% of the "Base Invoice" means the invoice price for the vehicle that you want, not including any options or the destination charge.

    Your Co-Host
  • cymcym Member Posts: 12
    Thanks very much for your response! Consumer Reports says the Tacoma currently has an $800 "dealer incentive", so what they probably mean is "dealer cash"??

    I must be looking in the wrong place on the Edmund's site, because I haven't seen any Toyota vehicles on the page with the list of dealer incentives.

    When you order a vehicle is there any way to go about taking advantage of an incentive at the time of delivery? In my case, with the Tacoma, it appears there is a rebate and incentive that expires on 1/4/99. Since I will be taking delivery after that date, I guess I can't really negotiate as if the incentive will still be there at delivery. But what if the incentive IS extended (which is has been in the past)? Or is this just a downside of ordering?
  • runonmd1runonmd1 Member Posts: 11
    I talked to a salesman re a Mercedes E320, and figured a price which included a 3% holdback, as recommended. This amounted to about $3000, the difference between my price and his (his was actually $1200 above what he said was his cost, though he did not include the holdback. He said that the holdback was not negotiable item. Did I make a mistake, or is he just trying to make a $4200 profit on the car? Or both?
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