Rebates, Incentives, APRs - Questions & Comments

CarMan@Edmunds

Rama, I am pretty sure that Isuzu has some sort of cash support on the Oasis in your area. I can't tell you exactly how much cash they have on this specific vehicle, but it is probably very similar to the $1,000 dealer cash that they have on it in the NE United States. Unfortunately, Isuzu's incentives will expire very soon. It is the end of the second quarter of 1998 and every automotive manufacturer's programs, with the exception of Acura, are scheduled to expire within the next week or so. Check back then to see how the current Isuzu program has changed.

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CarMan@Edmunds

What type of vehicles does this manufacturer sell, Robert_S? This is very interesting. I have never heard that before. Fourty-five days really is not that long a time to sell a car. I can't say for certain, but I doubt that the dealer holdback expires after such a short amount of time. Dealerships hate dipping into a vehicle's holdback in order to make a deal, and rightfully so. If a dealership has to use part of their holdback to make a deal, then they are not making a very fair profit. This is why dealers often try to mislead and confuse consumers about holdback amounts.

Robert_S

Car_man, This is a 97 Ford Explorer Demo. I now agree with your position of not expiring. I worked with another salesman on this truck and he questioned how I knew there was a holdback on this vehicle. I mentioned this site.

Next question, does anyone know if there is still a rebate available on New 97 Explorers. Another dealership I am working with on a New 98 mentioned that there was still a rebate available but I did not see one on this site.

Thanks,
Robert

CarMan@Edmunds

Robert, I don't believe that Ford is still offering dealers cash on '97 models. They may have had some sort of payoff for dealers in the last month or so in order to help them clear out their old inventory. With the '99 models about to come out, you can bet that dealerships will be eager to sell their leftover '97s as soon as they can. Good Luck.

div2

A local Nissan is pushing a "demo" 1998 Maxima GLE. Would the $1000 dealer incentive apply to this car? I assume you could use the used car price to determine a ballpark value.

CarMan@Edmunds

This Maxima is still technically a new vehicle, even though it has been used as a "demo" car. So the dealer cash would still apply. Unfortunately, you may find that the dealership will not want to sell you this car for the used car price. They will probably want more. Good Luck.

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thiulede

Will there be any dealer incentives on the 99 Expedition?

Also,
does anyone have the residuals for them yet?

CarMan@Edmunds

Ford's new incentives have not come out yet. They should come out sometime this week. However, I do not expect to see any incentives on the '99 Expedition. The '98 Expedition has been selling very well and does not currently have any incentives, so I doubt that the '99 model will.

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captainv

I've also been looking at a '97 Ford Mustang GT demo car (only 2500 miles) and was told that there were "carryover allowances" remaining. Any idea what this means? Can I get the current $750 or special financing on top? Lastly, will I get the full 3 yr/36,000 warranty?

ddelise

I just noticed that Cadillac is offering a dealer incentive of $1500 - $4500 depending on the number of units sold. How can I be sure which amount the dealer I am nogitiating with will receive?

CarMan@Edmunds

Ddelise, the dealer that you are dealing with probably isn't even sure how much money he will receive from this program either, yet. This is a volume bonus program. The more units the dealership sells, the more money they will receive per unit. This gives them an incentive to sell as many as they can during the program period. The longer you wait, the more likely it is that they are receiving $4,500 rather than $1,500. If you wait until September to purchase, you have a much better chance that the dealership will be getting the higher amount. Good Luck.

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CarMan@Edmunds

Captainv, a "carryover allowance" is essentially a lump sum payment that Ford made to its dealers at the end of the 1997 model year for any '97 models that they had left in inventory at that point. So instead of getting cash when they sell the car, they have already received money from the manufacturer. I don't remember the exact amount of close-out cash that Ford gave dealers for 1997 Mustangs, but it was probably around $750.

Unfortunately, 1997 models are not eligible to receive the $750 or the special financing that Ford is currently offering customers on '98 Mustangs. Don't worry though, I bet that you should be able to get a great deal on the car that you are looking at. Not only is it a '97 model, but it's a demo, too. The dealer is probably itching to unload any 1997 models that he has left before the 1999's hit dealerships.

Since this is still technically a new car the warranty will be good for three years from your date of purchase or 36,000 miles (not 36,000 in addition to the 2,500 that are already on the car). Good luck shopping for your new Mustang. It's one of the few affordable American sports cars that will be left after GM drops the Camaro and the Firebird.

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rhinestone

I've seen incentives or rebates on Ford Windstar mentioned at other conference sites, but Edmunds list doesn't show any at the present time. Anybody have some recent info?

CarMan@Edmunds

The look for information on the Ford Windstar to be posted on our site tomorrow or Wednesday.

sparky3

If the Manufacturer offers a rebate, does this cut into the dealers 3% hold back. In other words does the dealer make less because the car is discounted and the MSRP now shows a lower price?

CarMan@Edmunds

Dealer Cash and Consumer cash have no effect on the dealer holdback amount. The holdback on vehicles always remains the same reguardless of any special offers.

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kenchan

I'm planning to purchase either a Nissan Sentra or Dodge Stratus in North Carolina next week. Does anybody know of regional dealer rebates/incentives for these in this area? Thanks.

novacain

Hi. Does anyone have any recent info on Mazda rebates and incentives.

dwolf

I have a Toyaota dealer trying to tell me the current $800 rebate is only for purchased vehicles and not leased vehicles. True or false?? I think tey're playing games.

guitarzan

I don't know the answer. However, do they have a special/subsidized lease rate? If they do, you wouldn't be able to get both. Doesn't mean you can't beat them up on price still. Hope this helps...

CarMan@Edmunds

The dealer is right, dwolf. The $800 incentive that Toyota is currently offering on the Tacoma is not available with leases through Toyota Motor Credit Corporation.

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ddelise

Guitarzan -

I beg to differ - I think you can get both a dealer rebate and subsidized lease together. I negotiated this when I leased my 1995 Acura Integra GS-R. At the time I leased, they were advertising a lease for 329 with 500 down. However, there was also a $2000 rebate on the car at the same time. After hours of negotiations with the dealer, I ended up purchasing the car for way less than invoice, and the lease price was computed using the same money factor as the advertised price - needless to say I got a very good deal.

I saw once where you posted (I think it was you)that you leased the Acura CL, but did not get the 4.5% subsidized money factor (you got 5.5% instead) because you negotiated the price. However, I have two possible reasons for this. 1 - The 4.5% advertised price is given to those with A+ credit - if you barely do not meet the requirements, then the rate increases. 2 - The dealer felt like raising the rate, and you agreed to it. Plain and simple, this equates to more profit for the dealer.

I think at times that the subsidized lease rate and the dealer incentives can be mutually exclusive if you really deal for it.

seckler_mike

I just recently purchased a Mercury Mountaineer. It will not be delivered until mid August. I received the $1000 cash back dealer incentive. The salesperson also offered if there were any additional dealer incentive programs between now and the time in which I received the vehicle, I would be passed along to me. I discovered through Edmunds, that there is an "additional $350 - $700 Volume Program through 9/2/98." What exactly is this? Should this be made available toward my purchase? All replies appreciated and welcomed. Thanks.

CarMan@Edmunds

Ddelise, whether cash incentives and special lease or special financing programs are compatible really depends upon the specific program that you are talking about. Sometimes they are compatible, but more often than not they aren't. I have access to this sort of information. If you have any questions about specific program's compatibility, I'd be glad to answer them for you.

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CarMan@Edmunds

Mike, Volume programs are essentially like dealer cash, except for the fact that the amount of cash that the dealership receives depends upon the number of vehicles that they sell. In this case, if they don't sell very many vehicles they will only receive $350 per unit. However if they have an exceptional month, they can receive up to $700 per vehicle. I really don't know the specifics of your agreement with the dealer that you bought from, but it sounds to me as if you may be entitled to some additional money.

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guitarzan

Ddelise, despite being pretty knowledgeable when buying, I did get snookered slightly, I know that now. They claimed that the special rate was only available for their terms, not a negotiated price. I realize that is wrong now, thanks to folks here.

That is great that you got such a large cash incentive in addition to a good lease rate! We should all be so lucky.

ddelise

In the end though, all that matters is that you are happy with your car. I am seriously considering moving to the Acura CL 3.0 Premium, as my current lease is about to expire in three months. I realize that the current lease offer on the CL ends at the end of this month, and that the Acura Loyalty rebate also ends at the end of this month, but I am betting that both of these will be extended. Does anyone have definite information regarding this?

Also, does anyone know the correct Acura holdback? On the 'Dealer Rebate and Incentives' page, it states 2%. But if you look at the pricing pages for each individual Acura, Edmunds states 3.5% Which is accurate?

Also, I want say a thank you to Edmunds for providing quality information to the public. Your service is invaluable.

md811

The dealer would accept $19941 for the Windstar GL w/ 473B option package. The invoice price is $20850, not including their holdback($770), but including the $1500 rebate. If I want to use their .9% financing, my price is then $21,441 (no $1500 rebate). Am I paying $591 over invoice because they are keeping the $1500 for themselves or is their cost $22350 (previous cost + $1500)?
Is this a good deal?

sadmadjaja

I am trying to negotiate on a 98 Isuzu Trooper and have 2 issues:

1. Dealer claims that the invoice price, which corresponds with Edmund's does not include the 3% dealer holdback, ie the invoice is his true cost. In order for him to make his "fair" profit of 3%, he has to charge me the 3% on top of the invoice. I argued against this based on my what I read in Edmunds, but he was adamant that Edmunds is wrong with respect to Isuzu cars. Is he right or is he trying to make an extra 3% in profit margin?

2. What are the current rebate and/or incentive in the New Jersey/New York area? This dealer claims that there is a $500 incentive program while Edmunds quotes $1000.

Thank you.

jarhead6153

Does anyone know why salesmen "pretend" to not know about a dealer incentive? Is this money strickly for the dealership and in no way go to the salesmans' commission? I'm looking at the '98 Jeep Wrangler SE. I went to two different dealerships here in Florida and both didn't have a clue, I mentioned that its listed on Edmunds web page with no effect other than "there's too much bum scoop out there" from one salesman. Any info will be appreciated. Thanks.

Mr_Shiftright

DEar Jarhead,

As far as dealer incentives are concerned, this is his/her money to either keep or throw into the deal, so I suppose he/she could be coy and pretend it isn't there, but you know it is now so you can ask them to throw it in or you can try and get it from some other dealer.

Perhaps Car_Man here at Edmund's can verify that incentive on the Wrangler?

mpdealerphobic

Hi, everybody. This is my first time here and I don't know if I'm posting this to the right place, but let's throw caution to the wind...
I'm interested in a 1998 Acura Integra LS Coupe. According to the review on it, the invoice price is $17,155 with a dealer hold back of 3.5% of the base MSRP. Edmund's explanation of dealer hold back says that on an Acura, the hold back is 2% of the base MSRP.

2 questions: which percentage is right and what's the difference between "base" MSRP and Total MSRP?

Thanks, I hope to buy before the end of the month so I'd appreciate information ASAP!

johnlw

I haqve seen reabtes advertized here in the Baltimore/Washington areas for Mazdas. $1500 on Proteges and $2000 on 626's. It has not yet made it to the rebate/incentive page of Edmund's, but I think they are in effect until Aug-31. Anyone know for sure?

brad5

I'm in NYC negotiating over a 98 VW Golf GL. Edmund's lists a $750 dealer incentive and 1.9% APR as a consumer incentive. One dealer tells me that he can't give me any of the dealer incentive cash if I want the 1.9% APR. He shows me a copy of some fax (dug up from somewhere) which says he can offer me either but doesn't exclude giving both. He referred to an 800 number VW customer service who say they have no information to give me and I will just have to work it out with the dealer or go to another one. I actually went to another dealer and while he was ready to give me the 1.9% APR, he denied any knowledge of the $750 dealer incentive. Should I expect that I won't be able to get both some dealer incentive money and the coveted 1.9% APR or should I persist?

CarMan@Edmunds

md811, if you elect to take advantage of Ford Motor Credit's special .9% financing on the Windstar than neither you nor the dealership receive the $1,500. The cost for this vehicle is the dealer invoice minus the holdback. It's tough to say what the best deal would be for this vehicle in your area. Do a little comparison shopping and see if any other dealerships will beat this offer. If not, then go for it. Good Luck.

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CarMan@Edmunds

Sadmadjaja, I believe that the dealer holdback works the same for Isuzu as it does for every other manufacturer. Dealerships are very reluctant to dip into their holdback in order to make deals, and hate talking about it. Dealerships often tell consumers that the information about holdbacks on the internet is wrong in an effort to confuse consumers. I have heard similar stories from individuals who have shopped at many other types of dealerships. As far as the Isuzu incentives are concerned, the amounts listed on the Edmunds Web Site are for the New Jersey/New York area. Isuzu incentives really do not have a specific end date, they usually are subject to change almost randomly. Even so, I believe that the Isuzu cash that we have listed is still correct.

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CarMan@Edmunds

Jarhead6153, it actually is possible that the salesperson does not know about the dealer cash. Dealership owners sometimes choose not to share this information with their salespeople and pocket the additional profit. This sounds like a very poor strategy to me, but it is done. It's more likely that the salesperson knows about the cash and is just trying to turn a good profit on your deal. Keep in mind that the $1,000 that Chrysler currently has on the Jeep Wrangler is for 4 cylinder models only.

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CarMan@Edmunds

The dealer holdback for Acura is 2% of the Integra's Base MSRP, mpdealerphobic. This means 2% of the car's MSRP not including any options. The car's total MSRP is the vehicle's Base MSRP, plus the MSRPs of any options that you choose to add. I hope that this helps you out.

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barretts

I've been wrangling with a Plymouth dealer over holdbacks and incentives for a 1998 base Voyager. He says the holdback doesn't apply to the deal (ha! ha!) and won't admit to any incentives at all. Now that I know the name of the actual program (Dealer Volume Bonus) maybe I'll have more leverage. But, since I don't have any way of knowing exactly what their sales are, do I just split the difference and assume that their cost is reduced by $875?
Thanks!

CarMan@Edmunds

Brad5, unfortunately the Volkswagen dealer cash is not compatible with the special APR program. So, the dealership was telling you the truth. Since you can only have one or the other, I suggest that you go with the 1.9% financing. It will save you more in the long run.

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CarMan@Edmunds

Barretts, Chrysler definitely has incentives on the 1998 Plymouth Voyager. There is currently $1,250 consumer cash or 1.9% - 4.9% financing on this model. I don't believe that Chrysler currently has a volume bonus program on this model, but they do have additional dealer cash on 1997 models. I'm not surprised that he told you that this model does not have any holdback. Like I have mentioned before, dealerships hate to talk about their holdback amount and rarely dip into it in order to make a deal. I can assure you that Chrysler has a 3% holdback on the Plymouth Voyager.

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softball1

I did not see any incentives for the Cadillac Seville STS anywhere. Does anyone have any info? Are there volume incentives in place?

I was at a dealer with an admitted new salesman and he mentioned there was cash available on the Caddy's. Any ideas?

rmn01631

I am currently engaged in negotiations for a '98 Nissan GXE Quest. One dealer in my area is willing to sell the car for $200 above factory invoice, before applying the $2,000 customer rebate so that the total cost is $1,800 below invoice minus the 2 1/2% holdback the dealership receives. This seems like a fair deal to me, however, I was one informed by another dealership that the rebates for the Quest are likely to go up to $2,500 as they reportedly did last year around this time. The $2,000 rebate is scheduled to end on 8/31, however, dealers in my area acknowledge that their inventory of '98 Quests is high. Would you buy now, or wait to see if the rebate increases? What is the chance of the rebate being discontinued altogether as of 8/31? All thoughts/comments/info would be very much appreciated!

CarMan@Edmunds

Softball1, Cadillac just came out with new incentives this weekend. I have not seen the new information yet, but I expect to soon. Edmunds should have the revised information available sometime this week.

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CarMan@Edmunds

Junior no one really knows for sure, but I doubt that Nissan will discontinue their incentives on 1998 models when their current program ends on 8/31. It sounds like you are already getting a good deal on this van, but the support may increase if you want to wait. $2,000 is already a great deal of support, so even if this amount does increase it will probably only be by $500 or so.

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softball1

FYI
I am currently negotiating for an Aurora and the incentive is now $3,000 vs. the $2000 listed in the rebate section.

I realize these are new incentives as of the weekend, just thought you would want to know ASAP

rmn01631

Can someone explain what a "steer step" (not sure of spelling)incentive is? I believe it has to do with money the dealer receives per vehicle (in addition to his/her holdback) after selling a certain number of said vehicles. Is this true?
Also, I was informed that Nissan's $2,000 customer rebate includes $1,000 dealer cashback. Can this be confirmed? If so, I believe those interested in '98 model Nissans should be aware of this information to strengthen their negotiating position given that dealers may already be making $1,000 plus their 2.5% holdback at factory invoice price.

vsgc

I am currently negotiating a Volvo S-70 GLT with many options. The invoice for the car per the Dealer and Edmunds is 36695. This does not include the set 300. Volvo hold back. After much negotiating the dealer has offered the car for 36700. I am trading in a 90 Ford T-Bird with 90000 miles for 1700. which is being deducted from the 36700. I think the trade is decent because the T-Bird isn't in great shape. This seems like a great deal, should I go for it or am I missing something?

car4us

The dealer incentive listed for the 1998 Mazda 626 says $0-1500. When is it 0 and when is it 1500?

Thanks

Malfesto

Regarding the 626 incentives, it is indicated that this is for the Western region. Is it likely that it also apply to the Southeastern region?