Rebates, Incentives, APRs - Questions & Comments

tetedepierre

Thanks for the information. By the way I'll be returning to Florida in about a week. In your opinion (and I know it will be just that - an opinion) is the incentive or rebate apt to increase as the year progresses. I must buy this year as I don't want to travel back up in my Saab, but my timing is flexible.

ramped

Anyone know if the $1,500 rebate/dealer cash is still available? There was a $1,500 rebate in Florida until Memorial Day, but it seems to have disappeared.

CarMan@Edmunds

Well, it's tough to say what will happen for certain, tetedepierre. If I recall correctly, CTS sales were pretty strong in May so GM does not have an immediate need to enhanced this model's incentives. I can tell you that you probably do not have anything to lose by waiting. GM will most likely keep this car's incentives at their current level if it does not increase them.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds

Hi ramped. Mazda continued most of its May incentives through the end of June without any major changes. I believe that it does still have $1,500 cash on the 2004 Mazda6.

Car_man
Host
Smart Shoppers Message Board

ramped

CarMan@Edmunds

You're welcome, ramped. Let me know if you have any other questions.

Car_man
Host
Smart Shoppers Message Board

montanafan

I believe the Impala is one of the few GM cars with a bonus rebate for NON-GM owners also. Think it is $1,000. Should give you the total of $4,000.

CarMan@Edmunds

Very good point, montanafan. GM introduced new "conquest cash" for current owners of non-GM vehicles a little while after it introduced its new loyalty program. This cash is not available on every GM model, but it is on the 2004 Chevrolet Impala. When one takes this car's loyalty and conquest promotions into account basically anyone can get $4,000 off on it.

Car_man
Host
Smart Shoppers Message Board

jay46

In the market for an audi s4 or cadillac cts v. any current incentives for either car? Thanks

CarMan@Edmunds

Hi jay46. General Motors is currently providing 1.9% to 3.9% financing or $2,000 owner loyalty cash on the 2004 Cadillac CTS. If you are not a current GM owner, you are eligible for $1,000 conquest cash instead of the owner loyalty allowance. Audi's incentives vary by region this month. The only part of the country that it has any sort of incentives on the 2004 S4 is the Southeastern U.S. Let me know if you live there and I will fill you in on the details.

Car_man
Host
Smart Shoppers Message Board

jamess

Hi Car_man,

I'm looking to get a 2004 Jetta GLS 4dr Sedan (2.0L 4cyl 4A) with the following specs: platinum gray w/ black cloth and cold weather package.

I went to a local dealer and was offered VW credit at 0% APR (due to perfect credit) for 60 months. However the price of the car is $20,840. (Which seems to be full MSRP...) My OTD price would be $22,851 ($1,896 tax, $115 license).

I called another local dealer to find out if they have the same car available, and what their price will be. I mentioned that I am already pre-approved for VW credit. I should hear from them tomorrow.

My question is what is the best (estimated) price I should get for this car? (I believe the dealer hold back is 2% of base MSRP, and there is currently a $1,500 dealer to cash incentive.)

Thanks in advance for your help.

Best Regards,
JamesS

CarMan@Edmunds

Hi JamesS. You definitely should not pay full MSRP for any Jetta, even if you are getting 0% financing on it, unless it comes with solid a gold shift knob and rims. While Volkswagen is providing up to $1,500 dealer cash on the 2004 Jetta right now, you are only eligible for $750 dealer cash if you opt to finance through VW Credit's special financing program. I am not intimately familiar with what the market is like for the Jetta in your neck of the woods, but in most areas on should be able to purchase one for a couple hundred dollars over invoice fairly easily. When you take the dealer cash into account, this actually comes to $400 to $500 under invoice.

Car_man
Host
Smart Shoppers Message Board

sebski21

Hello everybody. Recently I purchased a new Honda Element. This is the first new car I have ever had. I put 5K down and had 15K financed. My credit is not perfect as I've been living in the US for 2 years so far (FICO in 680s). I was approved by eloan.com at APR of 8%. I also checked with my dealer but before they told me their creditors offer they asked me what I was offered, I said 7%. They offered me 6.75% or 5.9% IF I buy the extended warranty. I didn't buy it. I know 6.75 is better than 8 but it could have been 5.9. I assume they get paid by the bank so higher APR means higher commission for them. IS THIS LEGAL? Especially done by the authorized Honda dealer? Or buying extended warranty lowers APR? Thanks for any replies.

CarMan@Edmunds

Hi sebski21. It is not legal for a dealer to mandate that a consumer must purchase an extended warranty in order to get a low interest rate. This means that they probably could have gotten you financed at the 5.9% rate without any sort of warranty purchase. You did the right thing by getting pre-approved to finance this vehicle prior to visiting dealers. They beat the rate that you were pre-approved at so I would not necessarily say that you were taken advantage of. It is completely legal for dealers to mark up interest rates to add a little additional profit to deals. In fact, it happens all the time. This dealer was acting shady when it tried to force you to purchase an extended warranty, and they made a little money off of your loan, but they still got you a lower rate than you were able to find on your own.

Car_man
Host
Smart Shoppers Message Board

montanafan

I believe that what is illegal is tying approval with an extended service plan purchase, not the rate. If checked, you will find that the rate is discounted if an extended service plan is purchased. GMAC offers this on occassion, so perhaps Honda does also.

honda_sales

"If checked, you will find that the rate is discounted if an extended service plan is purchased. GMAC offers this on occassion, so perhaps Honda does also."

Not the case with Honda. If one of our F&I guys tried this they'd be burned at the stake

mahargni

If GM is willing to give large loyalty incentives to current GM owners I would think they would give equally large incentives to first time GM buyers. Is there any such program out there? Or is there a way to contact GM corporate to test this theory?

CarMan@Edmunds

Hi mahargni. General Motors is offering "conquest" cash on a number of its vehicles right now. This is a cash incentive that is available to current owners of non-GM vehicles. When this cash is combined with GM's normal consumer cash, the total is often close to or equal to GM's current loyalty cash offers. This conquest offer is not available on as many vehicles as the loyalty offer is though. What model or models are you considering? If you let me know I would be more than happy to tell you everything that I know about their current incentives.

Car_man
Host
Smart Shoppers / FWI Message Boards

mahargni

Hey Car_man, thanks for responding. I'd like to get into either the GMC Yukon or the Chevy Tahoe. I prefer these two over Fords comparable versions but my wife just informed me that we can get a family member discount through Ford. All things being equal I'd go for the GM products.

CarMan@Edmunds

You're welcome, mahargni. Unfortunately, the Chevrolet Tahoe / GMC Yukon are not included in the list of vehicles that have conquest cash available on them at this time. GM is offering the $5,000 owner loyalty cash that you are already aware of on these trucks or 0% financing for up to 5 years, 2.9% for 6 years, or $3,000 consumer cash.

Car_man
Host
Smart Shoppers Message Board

beckyb3

I was shopping for a Vue for the first time in March (I think) and there were several incentives and rebates, now of course there are none. Is there any way to find out if more are coming, and hang on until then? What is likely to happen, as this car seems to be gaining popularity?

CarMan@Edmunds

Hi beckyb3. Don't worry, Saturn is definitely still providing incentives on the VUE. For some reason, its June incentives are not reflected on the Edmunds.com incentives page though. Right now, GM is providing $2,000 customer cash or 0% financing for up to 5 years and 2.9% for 6 years on this truck. If you are a current GM owner, you are eligible for a $3,000 loyalty incentive instead of the aforementioned programs.

Car_man
Host
Smart Shoppers Message Board

seabush

I just looked at an Infiniti I35 with an MSRP of $32,030. The "invoice" price for this vehicle is $29,015. The dealer offered to sell the car to me for $29,500. After reviewing Consumer Reports and Edmunds, I've determined there is a dealer holdback of $860 on this car plus $2,000 marketing support. So in actuality the dealer wholesale price for this car is $26,155. I believe a 3% profit over wholesale invoice is fair. Therefore, I'm considering to offer them $26,939. Do you think this is fair?

kyfdx

I forget the exact details.. but Infiniti of Cincinnati is advertising I35s with MSRP of $31,xxx for $26,xxx. I didn't take note of the exact numbers, except that it appeared to be about a $5K spread between MSRP and selling price.

Hope this helps,
kyfdx

seabush

Thanks. I offered the dealer $26,678 which is %2 over invoice. They've countered with an offer of $27,468 plus taxes, tiles, tags, & $295 processing. It's $2,000 less than their original offer but still more than I want to pay.

rroyce10

....... Based on your figures it "seems" your into the holdback, and holdback is not a profit center (or even close) .. your offer actually makes the dealer lose money, thats why they turned it down ...

                 Let me ask you a question ..
     
            If you worked all week on your job and Friday rolled around, and you were expecting a paycheck and your boss asked "you" for a check for working there - what would you think.? .. thats basically where you are in this offer, your not being reasonable ..

              I'm not the dealer in this case, but I have feeling that somewhere between $27,468 and $27,0 you have a basis for doing business, these are nice vehicles and not distressed merchandise, besides a used one will cost you almost that much ...............

                              Terry.

                          

moparbad

What incentives/rebates are on the 04 Elantra GT at this time for Chicago region?

CarMan@Edmunds

Hi moparbad, or should I call you hyundaigood. I know that it's bad, but give me a break, I am on-line on the 4th of July . According to the latest information that I have seen, Hyundai is providing 0% financing for up to 4 years and 0.9% for 5 years or $1,500 customer cash on the 2004 Elantra.

Car_man
Host
Smart Shoppers Message Board

nortsr1

CarMan,
  I am negotiating the purchase of the above Sport Trac Premium RWD 4X2. Edmunds shows an invoice of $26,594.00 and a cash incentive rebate of $3000.00. Final price of 23,594.00. That is with the leather seating and hard tonneau cover and dest. charge included.The dealer claims there is only a 2000.00 rebate and if I take the FOMCO finance, they then add the other $1000.00 for the same 3000.00 total.I did not want to finance but am I being "forced into a finance deal" rather than being given the 3000.00 as edmunds shows on their website? This Ford dealer is located in Southern NJ area.
  Also, this program was from 6/6/04 to 7/6/04. The Ford and GM programs all had bad June sales months {from what I have read} and my second question is: Do you think that Ford might increase this incentive after July6th? I notice that they are already offering 5000.00 incentive on the Explorer.I intend to hold off for a few days (just in case)!
      Thanks in advance for a reply.

odysbmw5

Hi Car man: My 17 yr old needs a car. We have a 2003 Odyssey and a 2003 BMW 530i. Choices: a new X3 from BMW at $29k(that is 1900 off MSRP) -- Versus a 2000 Celica GTS at $13k with 40k miles.With the X3 we will sell the 530i (now at 13k miles and will be at 25k miles next year)next year or sell the Celica GTS next year. We live in Snow Country and though the FWD Odyssey is keeping me going I wonder if I should not get a SUV?. It seems that the 530i from 2003 will fetch me the same $ as I paid last year after one year-- due to its high rating by Consumers etc but I could be dreamin'.
Can you do the math on all aspects--- and advise me?

I also don't want my teenage son to be seen driving a Bimmer as his first car---though he has agreed to share it a family vehicle. He wanted a 1995 RX7 or a 2001 Audi S4 but the maintenance/reliability of those cars scared me away.

Any how I am confused---we have to sell one car next year to pay partly for his college.

leeandgina

Please dont take offence, but letting your 17yr old drive a car like an Audi S4, especially as their first car is just asking for trouble. I just turned in my S4 Avant and i had zero problems with it but it was very easy to go very fast and i think it goes without saying in the hands of a new teenage male driver its an accident (or worse) waiting to happen. You can also figure the insurance to be astronomical.

I think you are better off buying them either a new civic or corolla or similar.. something safe, fairly cheap and let your son build up some driving experience before considering a more performance oriented car. Im sure most kids would love to have a dad like you btw

Good luck!

steine13

How about whatever you can get for $5-6k?

Have you ever seen a 17-year-old boy drive when there is, say, a 17-year-old lady anywhere in the car? Or in the other lane? Or in the next county over and he's thinking of her?

Excuse me, but a 2001 S4? How about a motorcycle, that should accelerate the process.

If you wish to cultivate a sense of entitlement in your adolescent son, you're going about it the right way.

Opinionatedly yours,
-Mathias

CarMan@Edmunds

Hi nortsr1. Through July 6th, Ford is indeed providing $3,000 customer cash on the 2004 Explorer Sport Trac. I don't know where your dealer got the $2,000 amount from. In addition the the $3,000, Ford is providing another $1,000 if you finance or lease this truck through Ford Credit. This dealer is either intentionally trying to mislead you, or does not understand Ford's current incentives. It is difficult to say what Ford will do with its incentives on this truck when it introduces its new program in a few days. If I had to guess, I would say that its offers on this model will be at least as generous as they are now if not more so, but again it is difficult to say for certain.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds

Hi odysbmw5. You are certainly looking at some nice cars for your son. Do you want to adopt me ? If I was in your situation, I probably would purchase my son a used vehicle of some sort. Under normal circumstances, I probably would lean towards a used sedan, like a Honda Civic, Toyota Corolla, Nissan Sentra or Altima, etc..., but you know what the weather is like in your area better than I do. If you would feel a lot more comfortable with your son driving something with 4WD or AWD, you could always go the used truck route. By purchasing a used vehicle, you would avoid paying for the big depreciation hit that you would experience if you had purchased new and sold after one year.

Car_man
Host
Smart Shoppers Message Board

gregbaker

Hey Car Man,

Do you know if GM offers the Conquest Cash on the Chevy Colorado? Or if there is any additional rebate available other than the $1500 that they are advertising?

nortsr1

Carman,
     Many, many thanks for the info. I have printed out your reply and will confront the salesman with same and request to speak to the GM. if he doesn't come up with an "HONEST MISTAKE" excuse. You have just saved me a thousand dollars. Now, I will take the three thousand customer cash plus take the other thousand dollar finance offer for a total of four thousand off the already offered and accepted invoice price. I did not want to finance, however; I will take the offer and probably pay it off after about two months.
  Thanks again.....
                            nortsr

CarMan@Edmunds

Hello gregbaker. Unfortunately, the Chevrolet Colorado is not one of the vehicles that General Motors is providing conquest cash on at this time. The only other cash incentive that I am aware of on this truck is the $3,000 loyalty cash on '04 Colorado Regular and Extended Cab and $2,000 on Colorado Crew Cab models.

General Motors reported terrible June sales results a few days ago. As a result, I personally would not be surprised if it announced some sort of enhancement to its incentives over the next week or two. Of course, there is no guarantee that this will happen but if you don't need a vehicle immediately, it might now hurt to wait a little bit to see if it does anything with its incentives.

Car_man
Host
Smart Shoppers Message Board

CarMan@Edmunds

You're very welcome, nortsr1. Make sure to let us all know how everything turns out.

Car_man
Host
Smart Shoppers Message Board

nortsr1

CarMan,
   Well, you were correct...$3000.00 plus another thousand if I use FOMCO for a grand total of $4000.00. To top it off, I was eligible for the X-Plan price.
  I have negotiated the following:
      MSRP 31,005.00
     X-Plan 28,240.47
     Rebate -3000.00
     Fomco -1000.00
final price 24,240.47

 This for a 2004 Sport Trac,V6 5 speed auto., Premium pac, moon roof, leather/power heated seats,carg cage bed extender, hard tonneau cover, 4.10 limited slip axle and the upgraded am/fm stereo/in dash 6 disc CD player.
  I was going to pay the cash difference but the salsman said I could get the extra grand off and then pay the loan off after the first payment.
  Now for the kicker...I told him that I want to wait until next week as the new incentives come out tomorrow...(hopefully they will remain the same or get another 1000.00 more in cash incentive???
  As soon as you get the new incentives, etc. will you please post the new ones for the Ford Sport Trac for me?, as they already tried to screw me out a thousand the first time around and I want to be sure I go there with "YOUR CORRECT" info.
          THANK YOU again
             nortsr

 THANK YOU and looking forward to your post on the new Ford Sport Trac incentices after 7/7/04.

CarMan@Edmunds

I am glad that I was able to help you out, nortsr1. I haven't heard anything about Ford's July incentives yet, but keep in mind that there is no guarantee that it will renew the $1,000 Ford Credit bonus cash when its new July program is first introduced. On a number of occasions, I have seen Ford wait a week or two before reintroducing this type of offer. I would be more than happy to let you know what Ford's new program is like, but I would appreciate it if you post a reminder in this discussion for me tomorrow night. Talk to you soon.

Car_man
Host
Smart Shoppers Message Board

Sylvia

A reporter is working on a story about current model year cars and summer sellathons and would like to interview someone who thinks they've figured out when is the best time to buy a current model-year car - late summer? Early fall? She's looking for someone who's shopping for a good deal right now but recent shoppers may also respond.
Please write to jfallon@edmunds.com no later than Monday, July 12, 2004 with your daytime contact info and thoughts on the subject.

Thanks,
Jeannine Fallon
PR Director
Edmunds.com

Sylvia

A newspaper reporter is hoping to talk with people today, July 7, 2004, who waited to buy a vehicle in hopes generous incentives would come back...and is now reaping the benefits. Please respond asap, no later than Tuesday, July 7, 2004 to jfallon@edmunds.com with your daytime phone number and a line or two about your automotive experience and plans.

Thanks,
Jeannine Fallon
PR Director
Edmunds.com

nortsr

Just a friendly reminder to ask you if you have checked for the new Ford rebates and incentives for the Ford Explorer SportTrac. I am anxiously hopeing for an "increase".

    Thanks in advance

nortsr

Please post the new Ford incentives/rebates for the ExplorerSportTrac if you now have the new ones
  I am hopeing you have good news for me.

    Thanks in advance,
        Nort

CarMan@Edmunds

Hey nortsr. I have had an opportunity to take a look at Ford's new incentives. Starting yesterday, Ford began offering 0% financing for up to 5 years or 2.9% for 6 years or $3,000 customer cash on the 2004 Ford Explorer SportTrac. It also has a cash + special financing option that allows the combination of $1,500 customer cash and 0.9% financing for up to 3 years, 1.9% for 4 years, and 2.9% for 5 years. If you finance or lease this truck through Ford Credit, you are eligible to receive an additional $1,000 bonus cash.

Car_man
Host
Smart Shoppers Message Board

nortsr

CarMan,
  Thanks for the info...from your reply it looks like I will still get the $4000.00 total. ($3000.00 rebate and $1000.00 for financing the balance thru FOMCO}. I was hopeing they were going to "up" the rebate part to $4000.00 plus the other $1000.00 for useing FOMCO. Well, at least I did not lose by waiting the extra couple of days. If they would have "reduced" the rebate or finance offer thru FOMCO I would have "lost" that incentive.
   Again, many, many THANKS for your fast and knowledgeable replies.

      Nortsr

dennis3

are rebates taken before taxes are computed or after. looking at 04 galant gts. dealer is taking rebates after taxes are computed. edmonds refers to take the rebate after you negoiate your best price. was is correct? we live in ct

KCRam

Hi Dennis

Rebates are post-purchase discounts, meaning they come into play after the purchase is completed. Because you have the option on whether to apply the rebate as part of your down payment or as a check sent to you, the vehicle cost must be calculated with taxes and fees, and without the rebate involved.

kcram
Host
Smart Shopper and Wagons Message Boards

lariat10

I am interested in the 1,000.00 ford credit bonus cash on the f150. My question is what would be the minimum amount I would have to finance to take advantage of the rebate. Any ideas about ford's rates at this time . Also any conquest cash for owners of competitors trucks.

   James

idahoranger

I just bought a Ford Ranger FX4 today. Got a great deal. I financed it to get that extra $1,000, taking the rebate total to $4,000. My plan was to make one payment, then pay the whole thing off. So all I put down was $1,000. However, now that I read the back of the financing contract with Ford, it says that
"You may prepay all amounts due under this contract at any time." Unless I'm not understanding what that says, it seems that I don't even have to make that first monthly payment. I can just send in the entire amount financed as my first payment, consequently paying zero interest. The funny thing is, I asked the dealer if I could do that and he said, "I don't know. We recommend that you make payments for two or three months before you pay off the loan, if that's your intent."
I'm sending in the whole amount as my first payment. It's not like Ford can take away the $1,000 rebate. The deal is done.
Or am I missing something here?