Rebates, Incentives, APRs - Questions & Comments

landdriver

Ford announced their "Keep it Simple" incentive program yesterday (see Ford rolls out new rebates) in response to GM's red-tag program announcement the day before that. Apparently at dealerships that choose to participate a low no-haggle price is posted, and you just pay that price -- it's great for those who don't like negotiating car purchases. Ford gave an example of what the price would be under the plan on a ~50K Lincoln; I calculated it is roughly $750 over invoice, which is a very good deal on a $50K vehicle, but not quite as good as the deal they had going during the Summer from what I understand. The existing Ford rebates still apply as well.

CarMan@Edmunds

Kmcdonald, floorplan is the interest that the dealer is using the dealer holdback to pay. Some manufacturers provide dealers with additional cash allowances to help assist even further with floorplan interest though.

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CarMan@Edmunds

You're very welcome landdriver.

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CarMan@Edmunds

Hi Charlotte. Basically, Ford is copying the incentive program that General Motors recently rolled out. They are calling their new program the "Keep It Simple Plan." With this program, dealers are putting one "simple" price on all of the vehicles that they have in inventory. I don't believe that they are telling consumers how they are arriving at this price, but I can tell you that it is $100 over its supplier purchase program (x-plan) price. You are still eligible for any available customer incentives if you purchase through this program. Since it sounds as though you already qualify for Ford's supplier purchase program, this offer really doesn't do anything for you. Ford and GM's supplier purchase prices are no nearly as good as the employee purchase prices that they were offering a few months ago.

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CarMan@Edmunds

Hi again Kyle. DaimlerChrysler was providing dealer cash incentives on its minivans last month, but I do not believe that it has any on them now. It sounds to me as though the dealer that you are working with is trying to create a false sense of urgency to get you to purchase a minivan that they already have in stock.

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kmcdonald

Thanks Car_Man,

I think it mightbe a dealership specific thing. But you could be right.

The reason I say it might be legit is for the one on the lot, he's quoting $755 below invoice (minus rebates.) On the one he'd order he's $245 over invoice (minus rebates.) I just happenned to notice that 755+245=$1000. Coincidence? Maybe.

Thanks again for all your info.

-Kyle

CarMan@Edmunds

You're welcome, Kyle.

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jsa23

I'm considering purchasing a 2005 toyota 4runner sports edition and was taking a look here at edmunds as well as consumerreports about incentives and rebates...

At edmunds.com it states there is a $1000 rebate or 3.9% financing...

At consumerreports.com, it states there is a $1500 rebate PLUS 0-2.9% financing...

How do we determine which one is accurate and correct?

kcftravel

I received an e-mail from Dodge.com re Miles of Freedom plan and went to the link provided, there are no restrictions noted on the e-mail or the pages within Dodge.com that says you can't use it with a rebate. The rebate page only shows the rebate or the low APR. I've spoken to two dealerships with salespeople who "haven't been there" and weren't sure about the plan & will get back with me Friday. Normally the manufacturers list any restrictions for "special promotions".
This is for the RAM 1500 quad cab. I'm curious to see if there are any ads in other areas outside No. Calif with any more info?
thanks !

CarMan@Edmunds

Hi jsa23. Toyota's incentives vary depending upon which one of its twelve regions you are in. Furthermore, its incentives on the 2005 4Runner vary by engine type, i.e. its cash incentives are higher on V8 models. I would be happy to tell you exactly what the incentives are like on the truck that you are considering if you let me know what state you are in and provide a more detailed description of the truck that you want.

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CarMan@Edmunds

Hello kcftravel. Unfortunately, DaimlerChrysler's "Miles of Freedom Plan" promotion is not compatible with any other offers. You can choose the free gas / extended warranty / pre-paid maintenance or any current cash / special financing offer but can not use both. If you are considering a 2005 Dodge Ram 1500 Quad Cab you would be much better off taking the whopping $6,500 customer cash that is available on it right now than you would be going with the Miles of Freedom plan. It's about a wash between the $3,000 that is available on the '06 Ram 1500 and this plan, but I personally would be inclined to go with the cash on the 2006 model as well.

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rdubs

Hi everyone,

Does anyone know for certain whether or not holdbacks for Mercedes dealers occur for all models, or is it just select models like factory-dealer rebates? I recently negotiated the price for my fiance's CLK350 and when the guy started talking about invoice I mentioned that there were "other things Mercedes does to reduce the dealer's cost", trying to hint but not state that I knew he got a holdback, but he said that that is true only for certain models. I knew there were no rebates for the model, so it made me second guess whether or not the CLK got a holdback. I agreed on a price without factoring in the holdback and then kicked myself for not checking first. Any ideas?

Thanks everyone in advance.

luv4free

Does anyone know when Chrysler is announcing the new rebates for December? I'm trying to hold out until then before I buy????

theory2

Could you please tell about any rebates or incentives for a 2006 V8 sport edition 4runner in the northeast region. Thank you for your assistance.

CarMan@Edmunds

Hi rdubs. As you may have been able to tell by your conversation with this dealer, they hate to talk about holdback. Mentioning it usually is counter productive and serves to break down negotiations. Mercedes' dealers are not going to dip into dealer holdback to sell a relatively popular vehicle like the CLK. I am not sure of Mercedes' exact dealer holdback policy, but you should be able to find it out by visiting the following page of this site: Edmunds.com - Dealer Holdback.

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CarMan@Edmunds

Hi luv4free. DaimlerChrysler introduced its new December incentive program on the 1st. I'd be happy to give you an idea of what it is like if you tell me which model or models you are considering purchasing.

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CarMan@Edmunds

Hi theory2. In order to give you an accurate idea of what this truck's current incentives are like, I am going to need you to be even more specific than the northeast region. Are you near Boston or New York? For now I will assume that you are in the New York area. In that region right now, Toyota is providing 3.9% financing for up to 5 years or $750 customer cash or a special lease program on the 2006 4Runner.

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luv4free

Hi Car_Man,
Well, I read a post on a site called "The Scoop at Chrysler" and it said that on the 1st of December, Chrysler announced that it will increase rebates for December (bonus cash) on some 2005 & 2006 models, so you would be able to get rebates of up to $8000 on some models (I am assuming that would be the Durango - since it was $7000 in November). From what I see now the rebates being offered are the same as they were in November, even less now on some models. I have not seen an increase at all. So I'm thinking they have to offer more. I was interested in a Jeep Cherokee Limited.

carshopper26

First time car buyer here, and am confused about the whole cash back, incentives, etc. I am looking to lease either a Chevy Equinox, Pontiac Torrent, or the Mercury Mariner within the next 2 weeks (haven't made up my mind). How does the Red Tag Sale and the cash back amount work out if you plan on leasing the car. Does the Red Tag Sale price still apply? I recently received a price quote on a 2006 Mercury Mariner Luxury FWD, MSRP $24,705.00, Selling price $23,042.95 for a 39 month lease rate of $343.76 + tax. I was also informed that a lease rate of 39 months would be cheaper than a 48 month lease. Can you please provide information on how this works? Any help is greatly appreciated. Thanks!

CarMan@Edmunds

I am sorry to say, luv4free, that "The Scoop at Chrysler" apparently did not have the scoop because DaimlerChrysler did not increase its incentives on most models for the month of December. In fact, its incentives on a lot of models actually are worse than they were last month because it switched its bonus cash that was compatible with all programs to Chrysler Financial bonus cash that can only be taken advantage of if you finance or lease through Chrysler Financial.

You mentioned that you are interested the Jeep Grand Cherokee Limited. On the 2005 version of this truck, DaimlerChrysler is currently providing $4,500 consumer cash or 3.9% financing for up to 5 years plus $1,000 Chrysler Financial bonus cash. On the 2006 Jeep Grand Cherokee Limited there is $2,000 customer cash or 4.9% for up to 60 months plus $1,500 Chrysler Financial bonus cash. On either of these trucks you can choose the "Miles of Freedom Plan" instead of the cash incentives or special rates. This plan provides two years worth of free gas, a free five year / 60,000 mile extended warranty, and two years / 24,000 miles of free scheduled maintenance.

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CarMan@Edmunds

Hi carshopper26. You still will be eligible for General Motors' special "Red Tag Event" pricing if you choose to lease a Chevrolet Equinox or a Pontiac Torrent. However, the cash incentives that are deducted from this price will be different for leases than they are for cash purchases. The same thing goes for the Mercury Mariner and its "Keep It Simple" plan pricing.

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panozman

My question, if I'm on the correct board, if not Car_man, point me in the right direction.
Will it be better to buy before 2006 or before. Does anyone see or know if the Dealer incentives will be more in the first quarter. I have narrowed my choices to Nissan Max or Ford 500. Your thoughts appreciated. Merry Christmas

CarMan@Edmunds

Happy Holidays panozman. It is difficult to predict what manufacturers will do with their future incentives. Dealers and most people within the manufacturers' organization do not know what future incentive programs will be like until they are actually published. A lot depends upon what sales have been like. If I had to make an educated guess, I would say that Nissan's incentives on the Maxima and Ford's incentives on the Five Hundred will probably fairly similar in January to what they are like right now, minus the fact that Ford probably will not continue the "Keep It Simple Plan" pricing offer that it is currently promoting. As a result, I personally don't see any advantage to waiting until after the new year to purchase. In fact, from a pure negotiation standpoint you may be able to get a lower selling price on these cars now as dealers try to squeeze a few more sales in for the year.

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need4speed

Hi, I am in the market to buy a "greener" car. I currently drive a 2000 Mitsubishi Eclipse. It is a great car but gas consumption is below what I need. So, I am looking into buy a used either a Solara, Aveo or a Civic. However, I am not so sure which would be the best bet. To wait until January 2006 or buy now?

tampaconsumer

Car_man, this is on a different issue, but still a GM/Chevy purchase. It is as follows: Hi, my brother just bought a 2006 Chevy Colorado Regular cab, 2WD, 5-speed manual Transmission, 2.8 liter/4-cylinder. He was telling me over the phone that the MSRP on the truck is $15,330 and the Invoice price is $16,260. when he said this, i got a very bad feeling that he got taken by the salesman. I looked over my papers from the purchase of my 2004 Silverado that i bought new back in mid-2004. It had an MSRP $27,260 and the Invoice price of $24,096. I believe that the Invoice for my brothers truck includes the Factory Holdback and possibly other in-valid charges. Can anyone on this forum tell me if i am reading these numbers correctly? Should the Invoice price always be quite lower than the MSRP? I read this really good site that is very imformative. The Factory Holdback is not supposed to be included in the buyers price as it is given back to the Dealership once it sales the vehicle. Please contact me if you have any information on this issue.

Thanks,

Juan, Tampa, FL

nortsr1

Sound to me that you have the MSRP and Invoice price reversed??????

need4speed

Anyone has an answer to my question??? :confuse: :confuse:

marika

I would wait until the Yaris, Fit, and Versa are released. You might prefer one of these and they should all be significantly more efficient than any of your current choices.

I would not consider a Camry as efficiency pales in comparison to the Civic.

The Aveo isn't very efficient, either--26 mpg city is not much better than many full-sized Japanese sedans (my 94 Maxima, for one).

I would be happy with a 06 Civic coupe if I didn't know that something much better than 30mpg city was just around the corner. It would break my nerves to know that I could be driving something that was closer to 40 mpg if only I'd had more patience.

But, if you can't wait, get a Civic; it's the best of your listed choices, you'll probably be very happy with it, and if you drive with a light foot, you might do much better than 30 in the city.

minimom

Does anyone have info or even a good guess as to what Chrysler incentives will be for the 2006 T&C beginning January 4, 2006? I'm not sure if I should take advantage of the current incentives or hang in there until next month to see what will be offered..any thoughts??

CarMan@Edmunds

Hi minimom. It is difficult to predict exactly what manufacturers will do with their future incentives. Not even dealers know what sort of offers DaimlerChrysler will offer on vehicles after the current program expires. If I had to make an educated guess, I would say that the incentives that are available on the 2006 Chrysler town & Country will be at least as aggressive as they are now, if not more so when the new program is introduced next week. Again, this is just an educated guess though.

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nanaparrish

Maybe dumb question to some, but... On 2005 Mercury Sables they are offering $4K cashback or 3.9 on 48 months. I'm thinking 3.9%, but really don't know what is most advantageous (math not my best subject). At any rate, can someone help me figure out what I should be doing to figure what works best for my situation. Appreciate your time.

minimom

Hi Carman. Thought you'd be interested in knowing that I contacted my dealer yesterday to ask if it was better to take a 2006 T&C now or wait until January. He quickly ran the numbers and we were both rather staggered to discover that DaimlerChrysler leasing rates have dropped DRAMATICALLY over the past few days, no doubt in an effort to push end of year sales. The result is that I am leasing a 2006 T&C Touring model with an MSRP of $31,430 for just $347 for a 27 month lease with $0 down! A truly phenomenal offer. I have to take delivery by end of day Friday which is not a problem. If anyone is interested in a Chrysler, now is the time to run to the dealer! Good luck.

CarMan@Edmunds

This isn't a silly question at all, nanaparrish. Whether to take the special finance rate or the cash back depends upon how much money you will be financing and the interest rate that you would have to finance it at if you opt not to use the special rate. Let's say that you want to finance $20,000 and if you decide not to use the 3.9% rate that you will finance it at the average 48 month new car loan rate of 6.45% (according to bankrate.com). Using these figures, taking advantage of the special rate would save you only $1,111.20 over the life of your loan($21,632.64 at the 3.9% rate versus $22,743.84 at 6.45%) and this assumes that you actually keep your car for the entire four years. As you can see, you would be much better off taking the $4,000 cash incentive.

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CarMan@Edmunds

Huh I hadn't heard that, minimom. Congratulations on your new van and thanks for taking the time to stop back and let us all know how everything turned out.

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goodegg

Anybody know what kind of incentive the dealer receives in steering me to use their 'credit union' financing versus mine? Never heard of a dealer offering CU financing. The dealer says he can do better in rate than mine. Not sure I want to chance their CU thing vs. mine for $5 month.

robr2

The dealer is paid by the credit union/bank/finance company some amount to steer you towards them. How much? Only they know - there's no set amount.

Are you getting a price on the vehicle you are happy with? Is the dealer's rate better than what you've gotten? Then take it. You'll get a good rate, they make a little money, everyone is happy. Life isn't worth wasting chasing the last penny.

CarMan@Edmunds

Hi Juan. It's difficult for me to say exactly what the MSRP and dealer invoice price for your brother's truck are, but I can tell you that something is not right here. Vehicles' invoice prices are always lower than their MSRPs. You should be able to find out what the MSRP and invoice price of the truck that your brother purchased are by visiting the following section of this site: Edmunds.com - New Vehicle Pricing. Let me know if you have any other questions that I can answer for you.

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charlotte7

Car_man, do you know what the current incentives are for the 05 Mazda6 sports wagon? They don't seem to sell very well and I was wondering what they were doing to move the remaining 05s, which seem to be plentiful around here (Central Texas).

Mazda said the $3000 rebate/$500 gas card expired on 1/3, but I don't see their replacement incentives out yet. Also, I was wondering if you knew if there were some hidden dealer incentives to move the 05s--one of my local dealers is advertising them for $17K with Mazda financing and I was wondering how they managed that!

I always liked these wagons and I've got the S-plan, but I can't afford one at regular, $20K plus prices. I'm wondering if now might be a good time to snag one cheap.

Thank you,
Charlotte

CarMan@Edmunds

Hi Charlotte. I believe that in January Mazda is offering $3,000 customer cash (this includes the $500 gas card which may be taken in the form of cash if you want) on the 2005 Mazda6 plus an additional $1,000 bonus if you finance through Mazda Credit. Last month Mazda was giving dealers an extra $1,000 dealer cash on the '05 Mazda6 to help them unload their leftover models. I haven't seen if Mazda is providing any sort of dealer cash on this model in January yet, but I would not be surprised if they have a similar amount available this month.

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ohwhatafeeling

I know this month is a $1000 rebate, cash deal, ending Jan 31. The issue I'm having is that I would like to compare this car directly to the new 2006 Rav4 V6 Limited, which doesn't look like it'll be out until February, or even March. If I wait until then, I risk losing the $1000 incentive on the Highlander, which is the only thing making the Rav and the HL comparable purchases (want both in the Limited, third row). Thus, purpose frustrated. I could just risk it and buy the Rav4 no matter what it is, but if I don't like it (or if I can't get it for availability or change in options), I would want the HL, and without the $1000 rebate, I'd be going over the budget I've set for the car.

So, in the interest of being prudent, I'll likely pull the trigger on the Highlander now, but if for some reason there's going to be somthing similar coming up in February, I might hold off and see if I can't make my ideal comparison first.

Any insight?

terakami

Is Honda coming out with any other special finance rates in the near future for a Honda Pilot?

CarMan@Edmunds

Hi ohwhatafeeling. I don't know about the Limited trim level, but most dealers have started getting in the all new 2006 RAV4 already. I've spoken with several dealers who have delivered one. On a related side note, it's interesting that Toyota decided to make the all new RAV an '06 model. GM already has the '07 Tahoe out there. Anyhow, I wouldn't worry about missing out on the $1,000 customer cash incentive that Toyota is currently running on the Highlander. While it is difficult to predict exactly what automakers will do with their future incentives, I'd say that Toyota's cash incentive on the '06 Highlander will be at least the same a couple of months from now, if not higher. So I don't think that you are risking much by waiting to play with a new RAV before you make your purchase decision.

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CarMan@Edmunds

Hi terakami. It's difficult to say when Honda is going to introduce another special financing program on the Pilot. It is constantly running a special lease on this truck, but only has special finance rates on it for short periods of time. Honda ran one on most models during the last week of November and the last week of December. I don't know if it will do so again in January, I suspect that it won't but you never know.

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kkollwitz

Carman, any idea on factory to dealer incentives on these minivans? GMBuypower has no entry for them under current offers, i.e. rebates/ financing.

CarMan@Edmunds

Hi kkollwitz. General Motors paid dealers who still had 2005 Chevrolet Venture or 2005 Pontiac Montana units left in inventory on January 4th $4,250 dealer cash per vehicle.

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imariquinn

looking for a 2 year lease with payments under $300 with less than $1000 out the door. Prefer an SUV instead of a van this time though, but for the right price.....?

I had the $279 2004 Ody EX-Res deal for 24 months and the lease is over in April, so looking for a similar subsidized deal.

thanks

CarMan@Edmunds

Hi imariquinn. Unfortunately, Honda is not offering any sort of lease support on the Odyssey now like it was when you leased yours for such a great payment two years ago. You will have to spend a lot more than you are paying now to get a new one. You seem to be interested in vehicles that have a lot of space. A few that have a decent amount of room inside and have decent lease programs available on them right now include the Chrysler Pacifica, Dodge Caravan / Grand Caravan, Hyundai Santa Fe, Hyundai Tuscon, Jeep Liberty, Toyota Sienna, and Honda Pilot. The last two are the best vehicles of the bunch, but are at the high end of the price range that you mentioned. Stop by the following forum and visit a few of the specific lease discussions for a few of these models to find out more information on exactly how much it would cost to lease one right now: Prices Paid: Buying & Leasing Experiences.

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kcrook2

Hi Car_man I am looking to buy an 06 Nissan Armada LE, loaded.
What is the absolute rock bottom price that I could achieve in negotiations and how can I find out about secret factory to dealer incentives when they come around?

Also, how can I find out what states close to Virginia (I live in Northern Virginia) have the least Nissan sales and if I went to one of those places do you think I could get a better deal?

-LOOKING FORWARD TO YOUR RESPONSE,
Thanks

hgii

Does anyone have information on the DC college rebate Program? The jeep website (link title)says you can "get up to 1000's off MSRP". A friend used it last summer and he saved a bunch. I mentioned it to a local sales guy recently at the dealership and he said there is no such thing. Maybe he has never been to college :confuse: ? I have no reason to doubt my good friend's word. I am hoping one of the educated minds around here can properly enlighten me.

Love this forum! TIA

CarMan@Edmunds

Hi kcrook2. Unfortunately, Nissan is not currently providing any sort of dealer cash on the 2006 Armada. It is providing hidden dealer cash on 2005 Armadas right now though. Dealers who have '05 Armadas remaining in inventory will receive $500 "selldown certificates," up th three of which ($1,500 total) can be used to help unload leftover '05 Armada units. I don't think that there is much of a difference between the '06 and '05 Armada (correct me if I am wrong), so you may want to consider trying to pick up a sweet deal on a leftover model.

As far as the consumer incentives that are available on this truck go, this month Nissan is providing the aforementioned dealer cash and $2,500 customer cash or 2% to 3% financing on the '05 Armada. On the '06 model is has just $1,500 customer cash or 3% to 4% financing.

For feedback on how much you should pay for one right now, you may want to stop by the following discussion: "Nissan Armada: Prices Paid & Buying Experience".

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