Rebates, Incentives, APRs - Questions & Comments

cartalk

It is my understanding also that vehicles with 100K+ will not be financed by banks, etc.

renees

The TMV price for the 2004 Concorde LXI without options is about $3,000 less than invoice. In Addition, "Available" Rebates/Incentives tells you about the $4,000 Marketing Support to Dealers. Why doesn't Edmunds then subtract that from the TMV? As you probably know, this is the final year for the Concorde. How much off the invoice price do you think I could offer a dealer without being laughed at?

KCRam

Hi renees. As a matter of consistency, Edmunds TMV does not include incentives because not everyone will qualify for them. Some incentives will also vary by region, and in areas as small as counties, depending on the manufacturer. TMV essentially represents the average selling price before cash-value incentives are applied.

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jay46

Car Man

Looking to buy a 2004 Mercedes E320. I live in northern CA. Are there any special financing or incentives on this car? What % over invoice will be a good deal on a 2004 E Class? Thanks Man.

CarMan@Edmunds

Greetings jay46. Mercedes-Benz is providing support on the 2004 E-Class right now. Specifically, is has $1,500 dealer cash on the '04 E320 and an additional $1,000 ($2,500 total) for consumers who finance or lease through Mercedes-Benz Credit. It also is providing a little lease money factor support on this model. I am not all that familiar with shat sort of prices consumers are paying for this car right now, but you should be able to get a good idea of what to pay by stopping by the "Mercedes Benz E-Class: Prices Paid & Buying Experience" discussion.

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carsharp

How can manufacturer finance companies allow their dealers to advise their customers to take the rebate and the financing just to turn around and pay it off? Seems like a losing situation for the finance companies.

CarMan@Edmunds

Hi carsharp. The exact amount of time that consumers have to wait before paying or or refinancing their vehicle's loan to keep the additional captive finance company bonus cash varies from manufacturer to manufacturer. Even if the automaker that is offering the bonus cash to consumers who finance through their bank does not have a significant limit on the length of time that a note must be held, a large number of consumers will either forget to, are too lazy to, or don't think to refinance their loan at a lower rate. Also, there is a big difference between an independent dealership telling a consumer that they can take advantage of the bonus cash that is being offered to consumers who finance through GMAC, Ford Credit, or Chrysler Financial and then refinance their loan in the near future and a manufacturer telling consumers to do so. While they do receive certain guidance from the manufacturer of the vehicles that they sell, dealers are independent businesses who can tell consumers whatever they would like to within reason. There is probably not even any way for a manufacturer to know that a dealer was telling its customers to refinance their loans after a short period of time. I highly doubt that any automaker encourages this practice or even mentions that it is possible.

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friendly

I am shopping for a 04 camry or accord in greater chicago area, as I think that I would be able to get a better deal on a 04 model now. Any rebates or incentives given to dealers and/or customers on these models? thank you for your help.

cartalk

2004 Honda Accords:

$1000 Dealer Cash through 11/01/2004

2004 Toyota Camrys:

$1000 Dealer Cash through 10/04/2004 OR

0.0% APR Term: 36 months
0.0% APR Term: 48 months
1.9% APR Term: 60 months

CarMan@Edmunds

Hi friendly. Cartalk's post on the incentives that are available on these models (thanks cartalk) was pretty accurate. Honda is currently providing $1,000 dealer cash on the 2004 Honda Accord. Toyota is providing $1,000 customer, not dealer cash, on the 2004 Camry. It doesn't really matter what they call this cash allowance though, just as long as you know about it. Instead of the customer cash consumers can finance an '04 Camry through Toyota Financial Services at 0% for up to 4 years and 1.9% for 5 years.

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Kirstie_H

Since your question wasn't really about incentives, I've moved your post to our Chevrolet Impala discussion, where you're more likely to get feedback from others who've purchased a similar model.

You can also check out our full list of discussions on the Smart Shopper board, and post a pricing question in one of our other shopping discussions. It sounds like a good deal, though!

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beckieann

I am looking or a vehicle around $25K, but I also am looking for a company that is offering the best rebate. So far I've seen that Chevey is offering a $6K rebate on the trailblazer, is this the best I'll find?

Thanks!

CarMan@Edmunds

Hi beckieann. Purchasing a vehicle that has a ton of incentives available on it certainly is a nice perk and it definitely feels good to get a good deal on something. However, I personally always start my search for a new vehicle by asking myself "What would I like to drive" rather than where is the best deal. Make up a short list of vehicles that appeal to you, because of their styling, utility, performance, safety, or whatever reason and then take a look at the incentives that are available on them. It's great to get a good deal, but not at the expense of being miserable because you are driving something that you don't like. There are some people who look at vehicles strictly as appliances that get them from point A to point B. If you are one of these people who does not bring emotion into the new vehicle purchase equation then you may be able to pick the model that you want strictly based upon the which one has the best incentives available on it, that's just not me. For me, I drive what I like and the incentives that are available on it are only part of the reason for buying.

You definitely are not going to be able to beat the traditional domestic automakers, General Motors, Ford, and DaimlerChrysler, if you are looking for vehicles that have a lot of cash incentives available on them right now. I notice that you mentioned the 2004 Chevrolet Trailblazer in your post. Be careful when looking at advertising because this truck really does not have $6,000 customer cash available on it right now. In reality it has $4,500. The additional $1,500 cash, which varies depending upon which one of GM's five regions you are in, is a bonus for consumers who finance it through GMAC. In order to combine it with the aforementioned $4,500, you have to finance through GMAC using its standard interest rate, which is much higher than you would have to pay if you had financed through a different bank.

What sort of vehicle are you looking for? If you definitely need a truck and are only concerned about incentives, than a domestic SUV is probably the way to go. If you would consider a sedan, it is hard to get more bang for your buck in terms of good cars with tons of incentives on them, than Saab. Despite what I recently read in a funny Automotive News article on the subject, Saab is spending a ton on incentives for its products right now, especially on the 2004 9-3 sedan and the 2004 9-5 sedan and wagon. One can lease either of these vehicles and get an unbelievably low monthly payment.

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cartalk

A couple of other SUV-type vehicles that has big incentives is the Chrysler Pacifica ($5,000 dealer cash) and the Buick Rendevouz (same cash rebates ($4,500/$1,500) as the Trailblazer).

osteo

With all the 2004 SUVs still on the lots, does anyone have a feel if it's realistic to negotiate any additional discounts or dealer holdbacks off the standard offer of 4500 in rebates, 1000 for GMAC financing, two 500 coupons for a total of 6500 off dealer invoice price. Or, I'm not in a rush to buy and am wondering if there is any advantage to seeing what October brings. Anyone have any thoughts?

CarMan@Edmunds

Hi osteo. Dealer invoice minus any available incentives is a realistic target price for the majority of General Motors vehicles right now. Given the fact that GM has some dealer cash out there, it may be possible to purchase one for a couple hundred dollars below invoice, but many dealers may be reluctant to go that low on a Chevrolet Suburban.

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osteo

Thanks for the input. I'm going to see two dealers tomorrow for a purchase. May the best man win.

osteo

Thanks again for your help. I pulled the trigger yesterday and never made it to the second dealer. They certainly don't want you walking out the door if they know you're ready to buy.
MSRP on a Z71 was $47,200 and DIP $42,235. From a starting price of $42,536 they factored in the $4500 in rebates which took things to $38,036. Then the $1000 credit or rebate to finance at least $5000 for at least one month came along which took things to $37,036. Then they found two $500 dealer coupon sweeteners and rounded it off at $36,000. Up to this point all communications were via email and one or two phone calls. Then yesterday went in to see them and take a test drive. Things then went to somewhere around $35,700. Then the sale manager came through with what was described as a supplier type coupon or something which I'm still not quite sure what it was, which took it to a little under $35,300. That was absolutely as far as he could go. I said I would think about it and might come back after talking with the other dealer, but said if he could do it for $35,000 plus a years' worth of oil changes we could wrap it up right then and there. He did. The nice thing was I had another $1994.96 credit with the GM credit card and another coupon GM mailed for another $1000 which expires September 30. Maybe it will be available next month, but that extra grand was a powerful motivator to get the deal done before the end of the month. Total before tax and title was a shade over $32,000, about $34,600 with tax and title. Don't know how much lower I could have gone, but felt it was a decent deal.

suvbuyer4

I heard that Ford announced 6 year 0% financing to compete with GM's announcement. Does anyone know if this includes Lincoln as well?

cartalk

Lincoln offers the following promotional financing:

0.0%/36 months
0.0%/48 months
0.0%/60 months
2.9%/72 months

As with the Ford promotion, these promotional APR's cannot be combined with the customer cash. Some other APR's are eligible to be combined with the customer cash.

CarMan@Edmunds

You're welcome, osteo. Congratulations on your new truck. You sure are right about dealers not wanting to let consumers go if there is any chance that they can finalize a deal right then. A large percentage of consumers who tell dealers that they will "be back" to finalize their deal end up purchasing elsewhere. $10,000 under MSRP is a heck of a deal on a Suburban. I think that you did very well. Enjoy!

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CarMan@Edmunds

That is a very good question, suvbuyer4. I know that Ford is offering 0% for 6 years on all 2004 Ford division products, but I have not heard anything about this program being available on Lincoln / Mercury products. I don't see why it wouldn't be available on the Lincoln Navigator, but I have not heard anything about it being available on this model yet which leads me to believe that it might not be. The only way you would realize the full savings that the 0% for six years provides is if you hold onto the truck for that long. Quite frankly, given the fact that the 0% for 6 years can not be combined with any of the bonus cash that Ford is offering on vehicles that are financed or leased through Ford Credit, I personally feel as though you would probably be better off financing at 0% for 5 years and taking advantage of the $500 to $1,000 Ford Credit bonus cash. The exact amount of bonus cash varies depending upon what part of the country one is in. I would be more than happy to try to find out what is being offered in your area if you let me know where you are.

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suvbuyer4

Thanks Car_Man. I'm in Northern VA. I figure Lincoln probably is not offering the six years/0% as GM is excluding Cadillac from this program. Good point on the bonus cash not available with the 6 years....

laboutj

I am looking for an 04 Chevy Silverado 4wd Crew Cab Z71. I live in New England. Which incentives could be applied to the price? I'm just not sure if there is any overlap with these cash to customer rebates. By my calculations from your website, I could get $7,500 back. Any help would be appreciated.

CarMan@Edmunds

Hello laboutj. General Motors always has a large number of incentives on most of its models. Having multiple incentives programs on a vehicle can understandably be confusing for many consumers. GM is currently providing $3,500 customer cash or 0% financing for up to 5 years and 1.9% for 6 years on all 2004 Chevrolet Silverado models except those that are equipped with the turbo diesel engine. If you finance or lease this truck through General Motors Acceptance Corp. using its special financing or lease programs in your area right now, you qualify for an additional $1,500 bonus cash. The only way to combine this bonus cash with the aforementioned customer cash is to finance through GMAC using its standard rare, which is not very good. For most consumers, its standard APR is currently around 7% to 8%.

From September 27th through the end of the month, General Motors is lowering its 6 year financing rate on all 2004 Chevrolet models to 0%. While this initially seems like a good deal, this new lower rate can not be combined with the $1,500 bonus cash. As a result, you would probably better off financing it at 1.9% for 6 years or 0% for 60 months and using the $1,500 to negotiate a lower selling price.

To add to the confusion, in many parts of New England, GM is providing another $500 bonus incentive that can be combined with any of the above offers.

So basically, your options are to take $4,000 cash ($3,500 + $500 New England bonus offer), finance through GMAC at 0% for 5 years and use the $2,000 ($1,500 GMAC cash + $500 New England Cash), finance through GMAC at 1.9% for 6 years + $2,000, wait until the end of the month and finance through GMAC for 6 years at 0%, or use the customer cash + the bonus cash + the New England cash for a total of $5,500 and finance through GMAC at a very high interest rate.

Whew...confusing huh. That pretty much sums it up, other than the dealer cash certificates that are floating around out there. Please let me know if you have any other questions.

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nortsr1

CarMan,
  The GM regional map shows $5500.00 rebate plus 1000.00 if you finance thru GM...yet the dealer claims that it is only 5500.00 total. Is he pulling my chain as this offer is only good until tomorrow 9/30..... plus I have an extra 500.00 bonus points on top of my 2000 points that GM sent me good only until 9/30. I want to get the Tracker as a second vehicle...but...not if he is scamming me out of the extra $1000.00.
  Please reply

groverc

Does anyone have a feeling/comment on October auto incentives? I can't help but think they will only get better as car sales have been so slow. I am thinking of buying an '04 GTO. THe current incentives expire on Thursday, Sept. 30. I am trying to decide if I should gamble on the incentives improving on Friday.

What do you think?

CarMan@Edmunds

Hey nortsr1. General Motors' normal customer cash allowance on the Chevrolet Tracker is $4,500. One can only get the additional $1,000, $5,500 total, if they finance this truck through GMAC using its standard interest rate, which is not very good. The regional incentives map that is available on the Chevrolet.com Web site states that there is $5,500 on the Tracker, but it has an asterisk next to it that leads to a note that says "Includes GMAC Bonus. GMAC Bonus applicable when you finance through your dealer and GMAC." So the dealer that you spoke with was telling you the truth.

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CarMan@Edmunds

Hello groverc. While it is difficult to know for certain how strong a month September was for the auto industry until manufactures publish their sales results on Friday, everything that I have heard about the month thus far indicates that September has actually been a fairly strong month, sales-wise. This doesn't necessarily mean that automakers will not increase incentives in October. Vehicles' incentives generally increase as the model year progresses. If I had to make an educated guess, I would say that GM's incentives on the 2004 Pontiac GTO will be at least as strong next month as they are right now (with the possible exception of the 0% - 72 month offer), but there is no way to know for certain what GM will do with its October program until it is published. Right now its September incentives are scheduled to run through the 30th, however as is often the case when a program is scheduled to end at the end of a week both Ford and DaimlerChrysler have already extended their September programs through October 4th. I would not be surprised if GM did so as well.

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nortsr1

thanks for the fast reply.

CarMan@Edmunds

No problem, nortsr1. I'm always glad to help.

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secretariat73

I noticed that the Pontiac Vibe rebates that were listed on Edmunds ($1500 back on 2005s, $2000 back on 2004s) are no longer there, and haven't been replaced by other rebates (only the military rebate is currently listed).

Does this mean the September rebates are carrying over a few days, and the October rebates will be listed shortly? I find it hard to believe they would take away all the rebates, particularly on the 2004 models.

-Steven-

CarMan@Edmunds

Hi Steven. You are absolutely correct, General Motors, the king of incentives, would never just pull the plug on the support that it had been providing on a car or truck, especially if it is a leftover model. GM introduced its new incentives program on Friday, October 1st. Apparently the people who are in charge of the incentives section of this site have not loaded the new information into the system yet. In your neck of the woods, GM's Northeast region, it is currently providing 0% financing for up to 5 years or 1.9% financing for 6 years or $2,000 customer cash on the 2004 Pontiac Vibe. I believe that GM is also providing its dealers with a certain number of $500 "instant value certificates" again this month. There are not enough of these coupons out there to use on every deal, but since you know about them you may be able to convince your dealer to use one on yours.

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secretariat73

Thanks for the response. So I would just say "I've heard about the instant value certificates, can you apply that to this purchase"?

I also have a $500 off certificate for AFL-CIO members - any problem using that with the "instant value certificate"? Same for the "conquest" bonus?
-Steven-

4x4suburban

What are the new rebates, etc on the 04 suburbans. I've seen 5500 and 6000. What are Instant Value Certificates? Do all dealers get them to hand out. How do you negotiate for one?

CarMan@Edmunds

You're welcome, Steven. The statement in your post sounds like the right approach to take with these certificates. I believe that all of the incentives offers that you mentioned are compatible.

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CarMan@Edmunds

Hi 4x4suburban. General Motors is currently providing $4,500 customer cash or 0% financing for up to 5 years and 1.9% for 6 years or 0.9% financing for 3 years, 1.9% for 4 years, 2.9% for 5 years, and 3.9% for 6 years PLUS $2,000 customer cash on the 2004 Chevrolet Suburban. It is providing an additional cash allowance of $1,000 to $1,500 on this truck for consumers who finance or lease it through its captive finance company, General Motors Acceptance Corp. The exact amount of this offer varies depending upon which one of its regions one is in. The only way that this additional cash can be combined with GM's normal customer cash is if you finance through GMAC using its standard interest rate. The problem with doing so is its standard interest rates are not very good. Its lowest standard rates are around 7% to 8%.

The instant value certificates that I mentioned in an earlier post are essentially $500 dealer cash certificates that GM provides to dealers to help them sell vehicles, especially to unload leftover 2004 models. Dealers only have a certain number of certificates, not enough to use one on every deal, but if you know about them you may be bale to use them to your advantage during negotiations.

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ua01682

Does anyone know an easy way to monitor rebates and incentive changes? For example - email alert or something like that?

1sargent

Hi, I've been shopping for a 2004 Ford F-150 Lariat. I've found the vehicle that I want, but the 0% 6 Year financing offer disappeared on Sept 30.

Is it worth gambling to wait until the long Columbus Day weekend to see if Ford brings the 0% / 6 year offer back? Also, where could I find out about rebates that the dealer is getting from the mfcr on this truck, and valid rebates that are still in place?

Thanks!

scott31

I am not sure this is the right place to ask. What should the proper dealer advertising fee be for a Hyundai Tiburon Special Edition in the DC area? The amount that the dealer claims seems very high to me.

Thanks!

Kirstie_H

We have an advertising fees discussion, but you might also look at this tip from our advice section, advising you to pay no more than 1% of the vehicle's MSRP.

kirstie_h
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senseless

I ordered a Chevy Equinox in June and there has always been an incentive available, until now. Of course my car arrived this week. There is a $1500 "standard rate" GMAC rebate, which is useless. I have the Capital One check ready at 4.39%.

I asked the dealer to hold the car until the new program is announced in November, which is a month. I've been burned by bad timing before and want to at least wait to see what's coming. I will buy it November 1 no matter what. Is this reasonable? Is my deposit refundable if he sells it?

CarMan@Edmunds

Hi 1sargent. You're in luck in that Ford actually enhanced its incentives on the 2004 F-Series yesterday. It did not bring back the 0% financing for 72 months offer that it was running last weekend though. It is difficult to say whether Ford will bring back the this offer later on this month, like for Columbus Day weekend, but if I had to make an educated guess I would say that it probably will not. Having said this, its current incentives program on 2004 models is scheduled to run through the end of the month, so you don't have anything to lose by waiting other than risking not being able to find a leftover pickup that is equipped exactly the way you want.

Here is a look at what sort of incentives are currently available on this truck. Ford is currently providing 0% financing for up to 3 years 0.9% for 4 years, 1.9% for 5 years, and 3.9% for 6 years or 1.9% for up to 3 years, 2.9% for 4 years, and 3.9% for 5 years + $2,000 customer cash or $4,000 customer cash on 2004 F-Series Light Duty Regular Cab models. It is offering 0% financing for up to 3 years 0.9% for 4 years, 1.9% for 5 years, and 3.9% for 6 years or 1.9% financing for 3 years, 2.9% for 4 years, and 3.9% for 5 years + $1,500 customer cash or $3,500 customer cash on 2004 F-Series Light Duty Super Cab models. Ford is providing an additional $1,000 bonus cash on both of these trucks when they are financed or leased through Ford Credit.

That pretty much sums it up, but please let me know if you have any other questions.

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CarMan@Edmunds

Greetings scott31. It is difficult to know how exactly much in advertising charges dealers are assessed on a particular vehicle. I always advise consumers who ask what an ad fee should be on a specific car or truck to look at the big picture rather than letting the dealer that you are working with cloud things with all sorts of random fees and charges. The bottom line is that you want to drive off in the vehicle that you are interested in having paid the least amount of money possible. Focus on the total cost of this model, its out-the-door price. Comparison shop and get a few out-the-door price quotes from dealers in your area. Then purchase from the one that offers to sell you this vehicle for the lowest total price. After all, it doesn't really matter how that price was arrived at if you are spending the least money and are comfortable with the dealer that you purchase from.

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CarMan@Edmunds

I am sorry to hear that you missed out on the incentives that Chevrolet was providing on the Equinox last month, senseless. This is one of the rare cases where the incentives on a model actually got worse. I suspect that this is because the Equinox has been fairly well received by consumers, so much so that GM was able to back off on the incentives that it initially believed that it would have to provide on it. It's difficult to say whether it will reintroduce customer cash and special financing rates on the Equinox when it introduces its new November incentives. They may find that this truck was not selling as well as they had hoped without any significant support, but it may end up doing fine.

I am surprised that the dealer that you are working with would hold your ordered vehicle for an entire month for you. Anything is possible, but I would not be surprised if they were not willing to do so. If they sell it out from under you while you are waiting you should probably be able to get your deposit back. Of course, thinking that it should be refunded and actually getting a dealer to give you money are two completely different things. If you made your deposit on your credit card, you can always dispute the charges and probably win if this deal falls apart.

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4x4suburban

Thanks.

I'm a little confused on the rebate. I knew about the 4500 and the 1000. Did you mean the $2,000 is on top of that too?

Thanks

senseless

Thanks for the response, Carman. I read in todays Wall Street Journal that GM sold 12,000 Equinoxes in Sept, a little more than CRV and double the number for Toyota's Rav4.

I guess we'll see if sales fall apart with no incentives. As a customer who has waited well over the promised delivery date, in good faith, I feel that I'm now being left in limbo. If there are no November incentives, fine. Give me a guarantee and I can proceed. Otherwise, I cannot.

4x4suburban

Thanks.

I'm a little confused on the rebate. I knew about the 4500 and the 1000. Did you mean the $2,000 is on top of that too?

Thanks

CarMan@Edmunds

I completely understand your confusion, 4x4suburban. The domestic automakers definitely have some confusing programs out there. What I meant is that there are three options in terms of the incentives that are available on the 2004 Chevrolet Suburban. They are, you can take the lowest financing rates that GM is offering, take the highest cash allowance that it is offering, or take combine a slightly higher APR program with a lower customer cash allowance. This is where the 0.9% financing for 3 years, 1.9% for 4 years, 2.9% for 5 years, and 3.9% for 6 years PLUS $2,000 customer cash comes into play. The additional $1,000 is for anyone who finances or leases this truck through GMAC.

I hope that this clears things up for you, but please let me know if you have any other questions.

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CarMan@Edmunds

You're welcome, senseless.

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