Rebates, Incentives, APRs - Questions & Comments

lariat10

I looked at a old finance contract with ford and read the same thing. Any finance people reading this morning. A dealer told me I would need to make three payments then pay it off. I got the idea that thier part of the finance money might affected by it.

James

robr2

Keep in mind that you will owe some interest even if you pay it all with the first payment. Interest began accruing the day you signed the loan.

idahoranger

Yes, I stand corrected. I shouldn't have said "zero interest." You pay daily interest on a car loan, unlike a mortgage. However, that ends up being about $84 in interest for me. I'm sending the whole spanking check to Ford. What are they going to do, try to take back $1,000? It says right on the contract that the loan can be paid in full at any time. I'm tired of the dealers trying to pretend that you can't do this. My dealer flat out said, "I don't know" when I asked him. He recommended I make two or three payments. That's hogwash. Bottom line, I got a Ford with a total MSRP of $26,340 for $18,900 plus $149 doc fee and tax. I'm happy. And I'm paying the sucker off.

CarMan@Edmunds

You're welcome, Nortsr.

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CarMan@Edmunds

Hi dennis3. In most states how sales tax is calculated on vehicles that have incentives on them depends upon what type of an incentive it is. Most states treat dealer cash incentives as manufacturers' price adjustments and calculate tax after they are deducted from the car or truck's price. Consumer incentives on the other hand are treated as money that is given to consumers and are usually taxable, meaning that tax is calculated before they have been subtracted from the vehicle's price.

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CarMan@Edmunds

Hi James. That is a very good question. I have seen a copy of the Ford Credit bonus cash program and I do not recall anything about a minimum amount financed, but there must be one. I wouldn't think that they would give a thousand bucks to someone who only financed a dollar. Perhaps there is a $10,000 floor or something along those lines. The best way to find out what the minimum amount financed is would be to ask your salesperson or someone at the dealership's F&I department. If you are able to find out, please come back and let us know. I'm not sure what Ford Credit's current standard finance rate is, but if you choose to finance a 2004 F-150 through Ford's special finance programs you can get the $1,000 Ford Credit cash plus 0% financing for up to 3 years, 0.9% for 4 years, 1.9% for 5 years, or 2.9% for 6 years OR the $1,000 Ford Credit cash plus $1,000 consumer cash plus 1.9% financing for 3 years, 2.9% for 4 years, and 3.9% for 5 years.

To the best of my knowledge, Ford is not currently running a major conquest cash promotion on the '04 F-Series, but it did send out some conquest mailers to current lessees of competitive trucks a while ago. If you didn't receive one, which it sounds like is the case, then you are not eligible for this program.

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nortsr1

I just purchased a new 2004 Explorer SportTrac and only took the finace ($1000.00) offer to boost my rebate to $4000.00. The difference between my trade-in and the new ST was only 7500.00. I told the salesperson that I only wanted to finance $2000.00 but he came back and said the minimum was $7000.00, so I didn,t pursue it, as I, also, intend to pay it off as soon as my first payment comes due. I'll just call FOMCO for a payoff at that time.

CarMan@Edmunds

Thanks for the information, nortsr1. I wonder if the 7k is a set limit or if it is based upon a percentage of the vehicle's selling price.

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nortsr1

CarMan,
  My MSRP was approx. $30,000 but X-Plan took it down to roughly $27,000.00 and then with the $4000.00 off because of the rebates and incentive....the purchase price was approx.$23,000.00.and with the trade-in it only left a balance of $7000.00 ( which also included all tax, tags, etc.).. so I really don't know what the bottom line is or maybe he was just "blowing smoke up my a--". I figured whats the diff if I am paying it off with the first months payments for an amount that small.
  Anyway, the bottom line for me was your knowledge of the rebates and incentives and you saving me that extra $1000.00.

scottz

I am looking into buying a Silverado. GM currently has a $4000 rebate and the dealer has a dealer discount of $4000. MSRP is about $38,000 invoice is about $34,000

If I were to make on offer to buy the vehicle at invoice, would I calculate this as $34,000-$4000-$4000=$26,000 ?

The real question here, is the dealer cost INVOICE, or is the dealers cost INVOICE-dealer discounts.

This dealership is the #1 sales dealership in the state.

Thanks,
-Scott

CarMan@Edmunds

Hi Scott. If I was interested in buying this truck, I would negotiate as low a price as possible on it, stipulating that all available incentives will be deducted from whatever price we agree upon. If you are able to get the dealer to knock $4,000 off of this truck's price before taking any incentives into account, then you would take its full MSRP, subtract the $4,000 dealer discount, then subtract the $4,000 customer cash. I am sure that the $4,000 discount that the dealer told you about means $4,000 off of this truck's full MSRP, not whatever price you are able to negotiate. Dealer invoice is basically what dealers pay for vehicles (there are other credits and expenses that need to be taken into account, but this is a simple way to look at things). There is no way that a dealer will sell you a Silverado for $4,000 below invoice and then subtract any available incentives.

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scottz

Car_Man,
Thank you for your reply. I was hoping to be able to cut into the dealer's kickback. But if what you are saying is correct, all the dealers in this area are offering $8000 off of MSRP up front (combining $4000 rebates and $4000 "dealer discount") which would mean all the dealers are advertising selling this vehicle near invoice. Knowing how greedy dealers can be, this doesn't sound right.

I guess I will have to look into used vehicles now.

Thanks
-Scott

CarMan@Edmunds

You're very welcome, Scott.

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younger

Question for you all. Has anyone heard any rumors or reports on upcoming GM rebates? I am aware of the current offers which I believe exp. Aug. 2nd, however I'm wondering what might be following that up. Any info would be great! Thanks!

candlefli

This is my first time buying a car. I have been doing a lot of research on rebates and incentives. It seems as though most of them are going to expire 8-2, but I will not be able to purchase till a week afterwards at the earliest. Am I just out of luck?

CarMan@Edmunds

There's no need to worry, candlefli. Most manufacturers only run their incentives programs for a month or two. They don't just disappear when their expiration date arrives though. In most cases, the incentives on 2004 models will remain the same, or possibly increase after August 2nd.

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younger

Car_Man: I am in the same situation, won't be able to buy until mid to late August. It seems most of GM's rebates don't apply to the LLY Duramax, with the exception of the Loyalty Rebate which is what I wanted to use. Do you think that will be extended as well, or renewed for that matter?

CarMan@Edmunds

Hi younger. I would not be surprised if General Motors phased out its current owner loyalty promotion next month. I don't think that this promotion had the positive impact on sales that GM was hoping it would. In response to disappointing June sales, in July GM made most of its normal customer cash incentives the same as its loyalty offers. It seems to introduce new themes for its incentives every couple of months or so. Prior to this loyalty promotion, General Motors was promoting "Truckfest" and prior to that it was aggressively pushing leases. GM's incentives definitely will not disappear in August, but it might try to get away from the loyalty incentives that it has had for the past two months.

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bigbutr

I see where Volvo is running a special lease deal on the S40. But a poster in the Volvo forum mentioned something about a $3,000 incentive for leasing the S40 instead of buying it. With them already doling out a free premium package upgrade, it sounds like a pretty sweet deal. Do you know if this is legit, if it's still going or has been replaced by this newest lease offer?
I've driven both the 2.4i and T5, but I don't think without some serious incentives that either are worth the extra chunk of change.
Thanks

CarMan@Edmunds

Hi bigbutr. Volvo is providing $3,500 lease cash to consumers who lease a 2004.5 S40 through a bank other than Volvo Finance this month. Unfortunately, this program is not compatible with the Complimentary Premium Pkg. offer that Volvo is also providing on this car. So you can not double dip so to speak and take advantage of both offers. Volvo is also providing lease support on '04.5 S40 leases through Volvo Finance at this time. Whether it is better to use the aforementioned lease cash and go through an independent bank or to use Volvo Finance's supported lease program will depend upon what sort of deals independent banks are offering on this car this month.

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bigbutr

Do you perchance happen to know what other lease incentives Volvo is offering. I've seen a current lease deal, but it's for 48 months, which is 12 too many in my book.
I would think the $3500 lease incentives would be better, since the premium package is only $1900 invoice.
I've also been looking at a number of other vehicles - Mazda 6 (does $1500 rebate apply when leasing, are residuals better because it's new?)
Mazda 3 (hard to find w/ options I want);
Honda Accord EX-L (Honda never discounts, though good residual);
Toyota Camry, both 2004 and 2005 (dealers practically giving them away, which does not, in my view, help residual).
Not sure of the Altima: quality control issues keep creeping up in the forums.
I know it's a lot of questions and I thank you in advance for answering. I'll understand if it takes a little longer.

jaserb

Hi, CarMan-

Just wondering if you knew whether or not Mazda is still offering $500 bonus cash if financing through Mazda Credit. The vehicle in question is an MPV, I'm located in UT.

Thanks in advance,
Jason

mfullmer

CarMan. What do you know about the "Toyota Touch Preferred" program? Specifically, can the vehicle be sold/loan paid off at any time like traditional financing or must the term be completed, as in Leasing. Also, are the rates on these the same as traditional financing or higher/lower? Also, do you know the current TMCC rate for the Solara Convertible?

Thanks

CarMan@Edmunds

You're welcome, bigbutr. Volvo is advertising 4 year leases on many of its models right now, but in most instances it has a fairly similar level of lease support for 3 year terms. If you are interested in leasing this month, you are probably best off either taking advantage of the $3,500 lease cash or leasing it through Volvo Finance using its special lease money factors and forgetting about the free Premium Pkg. offer.

The $1,500 customer cash that is available on the 2004 Mazda6 this month can not be used in conjunction with Mazda's supported lease program. However, much like Volvo is doing on the aforementioned vehicle, Mazda is providing $2,500 lease cash for leases of '04 Mazda 6 models through banks other than its captive finance company. It also is providing lease money factor support through its own bank on this car at this time. Mazda is not presently providing any sort of lease support on the Mazda3. According to what I have heard this car is actually selling very well, so you may have a harder time negotiating a steep discount on one than you would have on some of the other models that you are considering.

You also mentioned the Honda Accord, Toyota Camry, and Nissan Altima in your post. All of these cars have special leases available on them at this time.

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jilco

I am considering purchasing my first new car. I am trying to decide between a Honda Accord or a Toyota Camry. The sticker price on both is approx. $23,000. What should I expect to pay? Are there any current incentives on either car? Any advice is much appreciated.

CarMan@Edmunds

Hi Jason. Mazda is not currently offering any bonus cash for consumers who finance a 2004 MPV through its captive finance company, like it was in June. It still has some very aggressive incentives on this model through. Right now, Mazda is providing 0% financing for up to 5 years or $3,500 customer cash on the 2004 MPV. It is also providing dealers with another $750 dealer cash on this model.

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CarMan@Edmunds

Hey mfullmer. I replied to your identical post in the other discussion that you put it in on this board. Please check there for my response. Thanks.

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CarMan@Edmunds

Hi jilco. You have chosen two excellent vehicles as candidates for your first new car. There are incentives on both of them right now. Honda is currently providing $500 dealer cash on 2004 Accord Sedans and $500 to $1,000 dealer cash on 2004 Accord Coupes. This cash may be combined with Honda's special lease program. Toyota's incentives on the 2004 Camry vary depending upon which one of its 12 regions you live in. If you let me know what state you plan on purchasing a Camry in, I would be more than happy to try to find out what sort of offers are available on it there.

You should be able to purchase either of these cars for slightly over dealer invoice, minus any available incentives. Information on these car's invoice prices can be found by clicking on the following link: Edmunds.com New Vehicle Pricing Page.

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jaserb

We actually picked one up for $7500 under sticker including the College Grad rebate, but the F&I guy wasn't sure about the Mazda Finance rebate. They had left an old flier about that rebate in the van. Still, $1700 under invoice plus $4000 in rebates isn't too shabby at all, plus I'm using a Mazda Rev-it-up coupon for another $250 off. So I got a van that stickered for $25,115 for $17,365! Talk about some crazy incentives.

Thanks,
Jason

CarMan@Edmunds

No problem, Jason. At $1,700 under invoice before the deduction of the customer cash, I'd say that you got a very good deal on your van. Congratulations on your great deal.

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jilco

Thanks for the advice on pricing as well as the link. This site is extremely helpful for first time new car buyers! It would seem that the Accord is a little higher in price but has a better residual value. I have driven both cars and the Camry seems to have a bit more leg room. Would you agree? I live in Kentucky!

beads97

I was wondering if anyone had advice about rebates. I am looking at a Tribute or Escape. The rebates are $4000 for '04 Tribute, $2000 for '05. The Escape is $2500 for '04 and $1500 for '05.

My question is are these good deals? Can I wait 3, 6, or 9 months and get a better deal? I have access to the Ford Z plan so my price is set, except for the rebate. Should I go with these rebates or will they likely get better.

Thanks!

bigbutr

I have pretty much narrowed my choice of next new car to the Honda Accord sedan.
My question is this: Would an EX 4-cylinder with leather and navigation hold its value more or be worth more after three years than an EX V6 with just leather?
According to figures I have looked up, they are only $100 apart in MSRP ($26,300 for auto to $26,400 for auto, not that I'll pay MSRP). Given technology always improves in such a short span, is the bigger engine a better holder of value than the navigation? I'll be doing a lot of traveling and the nav would come in handy, but it's not imperative.
I plan on leasing, so any info about that would be helpful.
Thanks in advance
Steve

CarMan@Edmunds

You're welcome, jilco. I am glad that you find this site so helpful . I believe that Kentucky is in Toyota's Cincinnati region. Toyota is currently providing $1,000 customer cash or 0% financing for 3 years and 1.9% for 4 or 5 years on the 2004 Camry in your area.

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CarMan@Edmunds

Hi beads97. There is a fairly high level of support on the 2004 Mazda Tribute and Ford Escape at this time. I don't believe that there is much of a difference between the '04 and '05 versions of these trucks, other than moving the shifter from the column to the floor. As a result, I would be inclined to purchase an '04 model and take advantage of the higher incentives. There is a good chance that the incentives on these leftover '04 models will increase slightly as the year progresses and manufacturers are trying to help dealers unload them to make more room in inventory for 2005 models, but I personally wouldn't wait longer than another month or two to buy. The longer you wait, the less likely it is that you will be able to find an '04 model with the combination of color and options that you want.

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CarMan@Edmunds

Hi Steve. In general navigation options on vehicles do not retain their value well. Used vehicles that are equipped with navigation systems only bring slightly more money than equivalent models without this option. As a result, the residual values for nav-equipped cars and trucks are usually around 2% lower than models that do not have this option. Navigation is a neat toy to have, but you are going to have to pay for it. If I was in the market for this car I definitely would go with the V6 without navigation over the 4-cylinder with it.

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nofo

I am interested in purchasing an 04 Denali XL but I can't figure out if the $5000 rebate applies only to current GM owners or to the rest of us as well? If not, are there any other incentives that apply now for non-GM owners on the Denali?
Also, can the rebate be used in connection with a "Smartbuy" financing?
And... while I am here... any word on GM incentives after 8/2/04?

Thanks in advance for your help.

CarMan@Edmunds

Hi nofo. In June, General Motors was providing $3,000 customer cash for most consumers and $5,000 for current GM owners on the 2004 GMC Denali. It enhanced this model's incentives to $5,000 customer cash to everyone in July. I do not believe that this cash may be used in conjunction with GMAC's SmartLease and SmartBuy programs. I have not heard any rumors about what GM's August incentives will be like, yet.

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djj

I am going to buy a Chev P/U. I see that their rebate on 2004 units expire on Aug. 2. Ford's rebate is up to $5000 on the F150's. Should I buy before Aug 2, or wait till next week to see if the GM rebate will go up to match Ford's?? Any chance that GM will eliminate their rebate entirely? I doubt it judging from the number of unsold 2004 vehicles that I've been seeing on the lots.

nofo

Thank you for clearing that up CARman - you are a very valuable resource. I'll take my chances and wait to see what GM does after the 2nd.

Do you know what GM finance rates are for 60 months if one purchases the vehicle and takes the rebate (assuming execllent credit)? Further, are the GM rates negotiable at the dealer?

Thanks again. Nofo

CarMan@Edmunds

Hi djj. It is difficult to say what a manufacturer will do with its future incentives programs. It is very unlikely that General Motors would not at least continue, if not enhance, its incentives on any 2004 model this late in the model year. There are no guarantees, but I personally don't think that you have much to lose by waiting until after August 1st to purchase your new vehicle.

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CarMan@Edmunds

You're very welcome, Nofo. GM does not currently have a special financing alternative for consumers who opt to take advantage of the customer cash that it is offering on the 2004 GMC Yukon Denali XL. If you want to go with the cash instead of the 0% financing, I suggest that you get pre-approved to finance this truck through a local bank or one that does its business on-line. Doing so will give you a good idea of what sort of rate you can expect and may motivate the dealer that you are working with to try to beat the rate that you have already been approved at.

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bigbutr

OK, after the wife test drove the S60 and the V70, we're trying to decide on which one. She likes the wagon, I like the looks of the S60.
So here is what I'm looking for:
1. Does the free premium package offer apply to either, both or neither?
2. What other incentives are currently being offered on both. I figure each might have a little more since they are true '2004' models and the '05s are right around the corner. (A dealer in Atlanta is running an ad for an 04 S60 for $20,995, and I can't figure out how they come to that short of a massive down payment, which is not in the fine print, or making the seats, tires and engine add-ons.)
3. How are these incentives in regards to leasing? I don't really plan on buying, so I'll need to factor in which deals are better and who to finance through.
Thanks in advance for your taking the time to answer as well as more thanks for previous replies.

CarMan@Edmunds

Hey bigbutr. Volvo is running the free premium package offer on both the 2004 S60 and the 2004 V70 right now. As far as other offers on these models go, through the end of August, Volvo is offering 1.9% to 3.9% financing plus $2,000 to $3,000 dealer cash on the 2004 Volvo V70 and S60. You can not take advantage of the dealer cash or the free premium package offers if you decide to lease these models, but Volvo does have some very attractive lease offers on them right now in the form of dealer cash if you decide to lease through a bank other than Volvo Finance or low lease money factors if you opt to lease through Volvo.

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bigbutr

Do you have a roundabout figure on the dealer cash available for leasing on the Volvo's? I've already wowed (thanks to you) the finance guy at our local dealership about my knowledge of certain offers and I'd like to stay that way.
Thanks again.

Steve

mfullmer

Any news of Toyota (Southeast) financing plans for August? I'm planning on taking delivery of my '05 Solara Convertible around the 20th and am not sure whether or not to even bother with having the dealer look around since I have 3.95% through my credit union.

CarMan@Edmunds

Yes, I do, Steve, and I would be more than happy to share it with you. In order for me to help you out though, I need to know exactly which S60 model you are considering, i.e. the 2.5T, T5, etc...

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CarMan@Edmunds

Mfullmer, Toyota's July incentives run through today, August 2nd. I probably will not receive word about what its new August program is like until tomorrow. Having said this, Toyota has not provided any sort of incentives on the Solara in its Southeast region recently. Even when it does provide incentives on this model in certain regions, they are always only available on the coupe and not the convertible. I doubt that Toyota would offer cash or special financing incentives on the Solara Convertible in its Southeast region for the first time in the middle of the summer. Of course, as I always say it is difficult to predict what automakers will do with their future incentives with 100% accuracy.

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mfullmer

Got it. I figured as much.

Thanks,

CarMan@Edmunds

You're welcome.

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