Rebates, Incentives, APRs - Questions & Comments

CarMan@Edmunds

No problem, mikenmary. Any of the customer or dealer cash incentives that I discuss in this forum come directly out of manufacturers' pockets and do not cost dealers a dime. If there is a $1,000 incentive on the car or truck that you are interested in and the dealer is offering to sell it to you right at its invoice price, then they are pocketing the $1,000.

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rroyce10

...... Dealers are more concerned on what happens "every" month ..... manufacturers are more concerned about the quarterly thing ...

Terry.

robr2

carman - heard about this yet?

http://news.moneycentral.msn.com/breaking/breakingnewsarticle.asp?feed=OBR&Date=20050308&I- D=4291505

CarMan@Edmunds

Thanks for the link, robr2. I heard about this new program yesterday. It definitely sounds like it will be a good opportunity to get a good deal on a GM product. The full details of this program have not been given to dealers yet. I will be interested to see exactly how this new offer will work. If I was in the market for a new GM product, I definitely would not pull the trigger until after this new program starts, just to make sure that I was not missing out on any additional savings.

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fredvh

How are we going to tell if a particular vehicle has been on the lot for more than 120 days? We won't be able to use GM BuyPower or check the dealer's inventory on-line because that information is not there. Does this mean we will have to go to each dealer and ask each dealer what particular vehicles have been on their lot for more than 120 days and therefore qualify for this additional $1000 incentive?

CarMan@Edmunds

That is a very good question, fredvh. I expect to be able to take a look at the details of this new program at some point today. It sounds as though it would work much better if it was a dealer cash type promotion rather than a consumer cash promo. By giving dealers dealer cash on older inventory they would be able to discount it more. If this was some sort of consumer incentive, one would think that dealers would have to put some sort of marking on the vehicles on their lot to indicate that they qualify for it. If you would like, check back with me later on today or tomorrow and I should be able to shed some more light on this promotion.

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watchhil

I bought a 2004 Sub 3/05 for $12,000 off. thought I had a good deal. The dealer now wants me to resign papers so he can get the $1000 for old inventory. This does not seem to pass the smell test, it is a bit fishy. Any suggestions?

sickntired1

Has anyone heard any of the details on the new GM 1,000 incentive?

fredvh

We do not know the details of this new incentive from GM. RUMOR has it that the manufacturer was going to give the customer an extra $1000 off of a new car if you purchased a car that had been on the dealer's lot for more than 120 days. This would benefit the buyer so I do not understand what your dealer is trying to do here. Unfortunately, since you bought before this promotion started, it would not benefit you. I hope the Host here can give us an update on the details of this "new" promotion from GM.

chuck777

Currently I am pricing a Silverado LS 2500HD with options. The Cars.com MSRP is $35,445 and invoice is $31,104.

The dealer is offering a $2665 discount (not sure what this discount is), $1000 in coupons, and GM has the current $4500 Rebates.

This all brings the price to $27,280.
The dealer is checking on the extra $1000 off and if he has a truck on the lot for 120 days.

What else am I missing or could I be asking for to sweeten the deal?

CarMan@Edmunds

Hi watchhil. As long as your truck's selling price does not change, or gets better I don't see anything wrong with signing a new contract so that the dealer can take advantage of GM's new incentive program. Having said this, you shouldn't have to sign a new contract if you don't want to.

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CarMan@Edmunds

Hi sickntired1. The new program that GM introduced yesterday essentially provides an additional $500 to $1,500 bonus cash on vehicles that have been on dealers lots for 125 days or longer. The exact amount of this incentive varies by model, but most vehicles that have been on the lot that long receive an additional $1,000 and Cadillacs receive $1,500.

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CarMan@Edmunds

Chuck777, I am aware of two dealer cash programs that are available on the exact trucks that you are interested in. The first is a coupon program through which GM dealers are given a specific number of $250 certificates, up to four of which may be used on 2005 SUVs and pickups. Dealers have not been given enough certificates to use one on every sale, and many are using theirs to help them unload their remaining 2004 models if they have any, but the fact that you know about this program puts you in a stronger bargaining position than if you didn't. The second program is stairstep program that provides dealers with up to $1,500 dealer cash per vehicle if they hit certain sales targets. Most dealers will not hit the $1,500 level for this program and will receive $400 to $750 per truck. Furthermore, only the trucks sold towards the end of the program receive payment. Dealers will be very anxious to hit their sales goals though so again knowing about this program gives you an advantage. Mentioning this volume bonus program probably will not do much for you in terms of getting you a lower price because the dealer obviously already knows about it. The only reason that I would mention this program would be if the dealer that I was working with kept claiming that they are losing money on my deal when I knew that they weren't. Of course, don't forget the new $1,000 for Silverados that have been on dealers' lots for more than 125 days.

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fredvh

I do not know much about the Chevrolet trucks and the details of this promotion have not come out yet. I do not know if it even applies to every GM product. The days that it must be on the lot has been updated to 125. You could try the Chevrolet Truck forum and ask about the price there.

chuck777

Thanks for the info.

Two more questions.
Does anyone know where the $2665 discount is coming from and could I possibly get more?

Is there an average under-invoice price that I should shoot for?

watchhil

I just recieved the updated documents from the dealer that I have been requested to sign. The key difference besides the sale date, is the is a "Customer Incentive Acknolegement" form. On this form is line itemed $5000 with GM incentive code XPQ.

Since this is a 2004 I thought there were no incentives. Could Incentive Code XPQ be part of the recent incentives to dealers?

jamesam

I need info on the GM "Coupon" instant rebates. ($250 per coupon up to 4 coupons per customer).

Are they available in Maryland/Virginia/Washington?

Are they available on the Cadillac SRX?

What do you have to do toget a dealer to give them to you? And if they refuse?

adamjeeps

If your state requires annual inspection you can look at the month of inspection sticker on it. I would assume the dealer puts it on as soon as they get a vehicle in stock. Also, find an older month and bargain harder for it, its costing the dealer to keep it.

CarMan@Edmunds

You're welcome, chuck777. All vehicles have a spread between what dealers pay for them and their full MSRPs. The $2,665 discount that your dealer mentioned is probably the amount that it is willing to reduce this truck's MSRP by out of its own margin before any incentives are taken into account.

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CarMan@Edmunds

Watchhil, I don't know the exact translation of the incentive code that you mentioned, but my guess is that the $5,000 that you are referring to is comprised of the $4,000 dealer cash that dealers were paid out on 2004 GMC Yukons and the additional $1,000 incentive for vehicles that have been on dealer lots for more than 125 days.

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CarMan@Edmunds

Jamesam, General Motors' "Instant Value Certificate" coupon program is available to all of its dealers in the U.S. This program is actually more aggressive than GM's normal program, up to four $250 coupons per model, on Cadillac and Hummer models. Cadillac and Hummer dealers are allowed to use up to six certificates per model. Keep in mind though that while knowing about this program definitely puts you in a stronger bargaining position than if you didn't know about it, individual dealers do not have nearly enough coupons to use anywhere close to six on every deal. Furthermore, dealers are not obligated to use these coupons on your deal, let alone even confirm their existence.

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ncdriver1

Hello Car_man. I have a question about Ford/Mazda discount certificates. I received two certificates in the mail a couple of months apart, but with overlapping valid time frames. Can I use them both for buying or leasing one vehicle? They have different program numbers and certificate numbers. Thank you.

CarMan@Edmunds

Hi ncdriver1. I am not exactly sure what certificates you are talking about. I guess you received some sort of direct mail offers from Ford. Chances are that these two offers cannot be combined, but you need to check with your dealer to be absolutely certain.

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jeffyscott

Some VW models (eg. Jetta 2.5) have offer of below market financing rates, but no alternative Cash rebate or cash to dealer "marketing support". Is there really no ability to get a lower cash price, if you do not take the financing in such cases?

CarMan@Edmunds

Hi jeffyscott. Special financing rates are provided by vehicles' manufacturers and do not cost individual dealerships anything. If you elect to pay cash for a vehicle that has a special financing program available on it, but no alternative customer or dealer cash incentives, then opting not to take advantage of the low interest rates will not save you any money.

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jeffyscott

If VW has this program in place when we buy our Jetta, we will take the financing then...since even our safest investments will earn more than 2.9%.

bionic620

I recently got a quote for the Pathfinder Armada for 42350. I also got a 1500 cash rebate. What I want to know is does the dealer add the destination charge of 560 and the 1500 cash rebate on top of 42350 which comes up to 44410. Then he tax me on the amount and then he gives me back the 1500 cash rebate. Is this what a dealer suppose to do because I thought the dealer was suppose to add the destination, then tax me and then gives me the rebate

CarMan@Edmunds

You're very welcome, jeffyscott. I think that you have made a wise decision. I would probably finance this car at 2.9% as well if I was in the market for one.

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CarMan@Edmunds

Hi bionic620. Vehicles' destination charges are considered to be part of their price and as a result are taxable. Each state has its own rules on how sales tax is calculated on new vehicles, generally speaking though customer cash incentives, like the $1,500 that is available on the 2005 Armada right now, are taxed and dealer cash incentives are not. So the sales tax on your truck would be calculated before the deduction of the $1,500.

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sballard

Thanks for the info!

I was on vacation last week and didn't get
a chance to check back in.

When I look at the Jeep site, I'm only seeing
$2000 cash and 0% for 60 months. Is there
still an additional $1000 available?

Thanks!...Shawn

lhess

found a leftover 04 mitsu eclipse spyder gts at the mazda/mitsu place when i went to drive an rx8. msrp was right at 30K. is mitsu offering any rebates or incentives on this model and year? i'm in wv (26651). didn't talk to the dealer about a deal on the spyder, but he mentioned that the redesigned 06 eclipse is due on the lots in June or so? they'll have 3 yrs worth of cars out there? sorry to ask here, but the salesman has been wearing me out trying to move the rx8 and don't want to add to the chaos. thanks!!

CarMan@Edmunds

No problem, Shawn. Despite the fact that it is not mentioned on the Jeep web site, DaimlerChrysler is indeed still provising a $1,000 bonus for consumers who lease or finance a new 2005 Jeep Liberty through Chrysler Financial for up to 5 years.

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CarMan@Edmunds

Hi lhess. Mitsubishi is providing a ton of support on the 2004 Eclipse Coupe. Specifically, it is providing $3,000 customer cash on the 2004 Eclipse Coupe GTS and a dealer stairstep program that provides up to an additional $2,000 per Eclipse. the exact amount of dealer cash that is available through the stairstep program depends upon the number of Eclipses your dealer sells during the program period, but if I had to make an educated guess, I would say that most dealers will receive around $1,000 to $1,500 through this program.

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lhess

Thanks for the info!! I really like my 01 spyder, but am ready to trade. thought i wanted the rx8 without question, but am having second thoughts. my eclipse has so much more room inside and just feels like a "better car" when you're under the wheel. however, the rush of driving the rx8 was intoxicating. the prices are coming down to about the same deal for me!! thanks again.

fredvh

Can you check for us if there is a manufacturer-to-dealer incentive for the Honda Accord in the Midwest? There are a lot of rumors on the Accord-Sedan forum and no one really knows if there is one or not. It apparently is something very new and ends this month. One source states that it applies to both the sedan and coupe and another source states just the coupe. We would appreciate it if you could find out.

wuahaha

Car Man or any one else know of any 2005 offers??

CarMan@Edmunds

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

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CarMan@Edmunds

Hey fredvh. Honda is actually running two dealer cash promotions on the 2005 Accord right now. The first is $500 dealer cash on Accord Coupes only. The second is a dealer stairstep program through which dealers can earn up to $600 per 2005 Accord and Civic sold. The top level of this stairstep program is difficult to achieve, so most dealers will probably receive around $400 through it.

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CarMan@Edmunds

Hi wuahaha. The only incentives that Infiniti is providing on the 2005 G35 Sedan right now are 1.9% financing for up to 3 years and 2.9% for 4 to 5 years or a special lease program.

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fredvh

Thanks car_man. I finally got the question answered. Does the dealer stairstep program end at the end of March and does it apply to the sedan and the coupe?

kobayashi

car_man,

Any data on BMW special finance rates on used 2002 BMW X5's (BMW Certified). Thanks in advance!

malub

I am buying my first vehicle on my own. In my negotiation, I understand that I should start by first asking for invoice price and work up from there. When we reach the agreed upon price, will it include the rebates or will the rebates be deducted from the price that the salesman and I agree upon??

Kirstie_H

While you're waiting for *professional* advice (which mine certainly is not), I'll give you my $0.02.

Since you're negotiating the price with the dealer, but the rebates come from the manufacturer, I look at them as separate. One is negotiable; the other is not. Negotiate your price, then take off rebates.

A couple of other things -
1) Go in knowing what rebates are available on the vehicle you want, and
2) Invoice is not always the best starting point. Depending on what vehicle you're looking at, people may be currently paying less than invoice.

Apart from your rebates question, our helpful members would be glad to give you more advice in these discussions:
Selecting and Buying My First Car
Purchasing Strategies - Questions & Success Stories

jeffyscott

Car_man I noticed that you apparently have information on dealer incentives beyond what Edmunds shows.

We are planning to buy the value edition of the new VW Jetta. It may be too early to ask about this as this version is not available until May or June...but can you let me know if VW has any cash to dealer programs going on this new model?

CarMan@Edmunds

You're welcome, fredvh. Yes, the stairstep program is scheduled to end on March 31st. It is available on both sedans and coupes.

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CarMan@Edmunds

Hello kobayashi. Say I don't suppose that you happen to be a world champion hot dog eater by any chance? Anyhow, unfortunately I do not personally keep tabs on used vehicle incentives. Sorry that I could not be of more help.

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kobayashi

No hot dogs....just a "Usual Suspect".

Any suggestions on where on these forums used BMW supported finance info might be? Thanks for the great work here.

sickntired1

Carman, I'm back out and looking for an SUV or truck. With all of the different rebates incentives, I'm getting confused. What's out there for a GMC Yukon on Chevy Tahoe. What are the rebates, does the extra 1,000 off for vehicles on the lot for over 120 something days apply and how about those $250.00 certificates,do they still apply? I belong to a credit union who offers a program of $200.00 above invoice selling price/no haggle plus rebates. With the news that GM sales are way down, do you think I can do better than that?

Also, does anyone know anything about Maryland charging $750. a year to vehicles over 6,000 lbs because they cause wear and tear on roadways and pollution? They say they aren't after trucks but the larger SUVs. But even the Trailblazer weighs more than 6,000lbs. My Silverado weighs more that 6,000, so am I going to have to pay that extra fee?

sickntired1

I'm sorry that was suppose to be: GMC Yukon or Chevy Tahoe

charlotte7

I'm looking at the 05 Mazda6 sport wagon. Yesterday, Mazda's Web site said there was a $1750 incentive until 3/31. Today, it says there is a $1000 incentive. What gives--how do I know what's true?

Also, I have access to the X-plan for Ford, the S-plan for Mazda, and the GM supplier discount. I've been reading in various forums, but I haven't seen anyone answer the question of whether or not it's better to use those plans, or just try and negotiate for the lowest price possible without them.