Rebates, Incentives, APRs - Questions & Comments

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Comments

  • KCRamKCRam Member Posts: 3,516
    Hi David

    In general, dealer cash is a cash incentive from the manufa\cturer to the dealer to move certain vehicles out of inventory, either because they were overproduced, are selling slower than expected, or are coming up on a model year change. The dealer is not required to pass this cash on to the consumer, although they usually do as a carrot to make the sale.

    In the case of the Honda you're interested in, it may be a situation where your exact model is not being offered with an incentive. Dealer cash and other manufacturer options often vary between trim levels of the otherwise same car.

    kcram
    Co-Host - Smart Shopper & FWI Conferences
    edmunds.com Town Hall
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    David, dealer cash is money that is provided by a vehicle's manufacturer directly to their dealerships. The dealership has the option to use this money any way that they choose. They can apply all of it to a consumer's purchase to bring down the price of the car, they can apply some of it to the purchase, or they can keep all of it if they want to. Information about dealer Cash usually is not made available to the general public like consumer cash Furthermore, dealerships and automakers do not want consumers to know about it. This is why they frequently deny its existence.

    In some instances dealer cash can be used in conjunction with supported lease rates, but this is not one of them.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • chazjazzchazjazz Member Posts: 1
    Car_Man, or Anyone Else.
    I am interested in a BMW 528i Automatic. What are the Residuals and Money Factors for 36 and 39 months and 12,000 and 15,000 miles per year?
    Also, what is a reasonable discount in So. Calif.? What markup over Dealer Invoice would be a good deal?
    Has anyone used the AAA car purchasing service or any of the Online services?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi chazjazz. I would be glad to help you out. If you decide to lease a 2000 model year BMW 528i through BMW Financial Services prior to August 31st the 36 month lease money factor would be .00325. I don't know what the 39 month money factor is, but I think that it is safe to say that it is probably the same. Of course this money factor assumes that your credit is in pretty good shape. Individuals with poor credit may have to pay a higher money factor if they qualify for a lease through BMW FS at all. The 36 month 15,000 mi/yr residual value for this car is 60% and the 12,000 mi/yr residual is 61%.

    For pricing information on this car, I suggest that you visit two areas here at Edmunds.com. The first area is the Edmunds.com New Car Cost Guide. There you can look up what Edmunds.com has calculated to be the "True Market Value" of this car. The TMV is approximately how much money you can expect to pay for this vehicle on average right now. Once you have looked at the TMV, I suggest that you pay a visit to the Edmunds.com Sedans Conference. There you can interact with fellow 5 Series shoppers and owners and perhaps find out how much money they paid for their cars. Use the following links to go to those areas: Edmunds.com BMW 528i New Car Prices and Town Hall Sedans Conference.

    For more information on car buying services and brokers, take a look in the Smart Shoppers Conference. There are many topics on those subjects in that section of the Town Hall. Click here to go there: Town Hall Smart Shoppers Conference.

    I think that this post basically answers all of the questions that you asked, but if you think of any more please do not hesitate to ask.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • davidmasdavidmas Member Posts: 12
    Talked to a friend that sells hondas in LA area.
    Says they haven't been letting the dealer cash go.
    This is in a very competative market. But did offer accord sedan at invoice.
  • john0909john0909 Member Posts: 1
    I mentioned the $1500.00 dealer incentive while negotiating a price for an Acura Intergra GS Auto the dealer offered me an additional $1000.00 off the price of the car but said I could not take advantage of the low financing Acura was offering. I thiught rebates and dealer incentives were two seperate programs. Was this dealer trying to telling the truth?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    John0909, consumer cash and dealer cash incentives are different. However, it frequently turns out that a manufacturer will not allow either of them to be combined with their special financing program. In these instances, they feel as though it would be too expensive for them to allow consumers to take advantage of both the cash and a supported interest rate. This is not always the case, but I believe that it is with the Acura Integra.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • funtimefuntime Member Posts: 1
    why do dealers take rebates off the price of the car after the sales tax has been added to the price of the car?
  • gmman1gmman1 Member Posts: 4
    Uncle sam is the reason. He want's more taxes
  • jmurman42jmurman42 Member Posts: 675
    rebates are treated exactly like a down payment.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Funtime:

    Although tax laws can vary from state to state, I believe that in most instances consumers must pay tax on consumer cash incentives but not on dealer cash. This is because the government treats consumer cash very similar to how it would treat a down payment from a consumer, as jmurman42 mentioned in the previously post. On the other hand, in most instances dealer cash is looked at by the government as a price reduction on the vehicle and is not subject to taxation.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • tdbeartdbear Member Posts: 5
    I was wondering where Edmunds gets its information for rebates, etc. The Volkswagon listing states that there are low financing rates for their cars but I called three dealers in Atlanta and they say they've heard nothing about it.
  • skerbel1skerbel1 Member Posts: 4
    I am assisting a friend in purchasing a '00 Chrysler Sebring JX convertible with alloy wheel option, cloth interior, and factory alarm. I am aware that the Sebring for 2001 has been redesigned and will possess a better engine among other things. However, my friend is interested in the 60 month, 5.9% interest rate being offered on 2000 model years, thus 2001 would be out of the question since the rate would be dramaically higher. My friend wanted to pay about 23k for the 2000 model, but in light of the 2001 model change what type of strategies or price reduction should we be pursuing or seeking.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Tdbear, Volkswagen Credit currently has special financing available on all of its vehicles, except for the Cabrio and Beetle. They usually split the country into two different regions for the purpose of their special financing programs, but I believe that supported rates should be available in the majority of the U.S. However, they may vary slightly from the most widely available program that Edmunds has posted on this site. The incentives data that is available in the "National Incentive and Rebate Programs" section of this site is extremely accurate and complete. It is complied directly from manufacturer bulletins that are obtained through a number of different sources.

    Keep in mind that VW Credit's current programs are scheduled to expire very soon (September 5th).

    Car_Man
    Smart Shoppers / FWI Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi skerbel1. I think that this is a particularly good time to be purchasing a Sebring. One reason is that the new 2001 model just came out. This will make dealerships more anxious to unload their leftover 2000 models. Also, Chrysler's car sales have been very weak lately. This will make it both more likely that dealerships will be willing to provide a decent discount on their cars and more likely that DaimlerChrysler will increase its incentives. At this point there is $1,500 consumer cash available on this car + an additional $500 dealer cash in you live in the Northeastern United States. You should definitely have all of the available cash incentives taken off of the price of this car when you purchase, that is unless you take advantage of the special financing that can not be used in conjunction with this cash. As far as the price goes, I would expect a significant discount but it is difficult to pin an exact number on it. I suggest that you shop around at a couple of Chrysler dealerships in your area. This is the best way to make sure that you are getting the best possible price for your part of the country. Good luck.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • skerbel1skerbel1 Member Posts: 4
    Many thanks Car Man, your input is greatly appreciated.
  • tdbeartdbear Member Posts: 5
    Car Man
    Thanks for the info. As I said, all of the Atlanta dealers stated they had heard nothing about it. Luckily I received low rates from my credit union so now I own a 2000 Passat Wagon.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Skerbel1, you're welcome. I'm always glad to help.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Tdbear, I am glad to see that you were able to get a good interest rate from your credit union. Enjoy your new Passat. I have several friends who own the new Passat and they have nothing but good things to say about it.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • shayes1shayes1 Member Posts: 12
    Car_Man,

    Do you have any lease info for the 626? I was just wondering if Mazda is supporting any lease deals on remaining 2000's. I am trying to get out of a five year lease in my Explorer Sport. The salesman I spoke with today couldnt give me any numbers and commented that I knew more about what was going on then he did, and he ultimately couldnt help me. The msrp on the car I looked at was close to 24.5k. I would guess there was a 12-15% mark up. Thanks for any help.

    scott
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Mazda's lease and incentives programs were scheduled to expire at the end of today and I have not seen their new programs yet. If you would like, please feel free to check back with me next week and I should be able to answer any questions that you have on Mazda's new lease program for you. Thanks.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • originalbwadoriginalbwad Member Posts: 4
    I have come across a still new, 99 ranger and I want to buy it. Edmunds is now only listing 2000 and 2001 rebates but I know a few weeks ago the 99's were still listed. Does anyone know how I can find the incentives/rebates for this truck?

    originalbwad
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Originalbwad, the vast majority of dealerships have already been paid a final carryover allowance on any leftover 1999 models that they have. This means that dealerships received a final lump sum payment for any 1999 models that were remaining in dealer stock after a certain date. I believe that Ford dealerships received approximately $1,750 for any remaining 1999 Rangers. They will not receive any additional cash on these models. You certainly should take this cash into account when negotiating a deal on a 1999 Ranger. In fact, you need to be able to negotiate a significant discount to be able to justify purchasing a 1999 model over a 2000 or a 2001 at this point.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • originalbwadoriginalbwad Member Posts: 4
    Thanks car_man.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, originalbwad.
  • shayeskyshayesky Member Posts: 4
    Car_man,

    Do you know of the new lease support/incentives on mazda products?
    Thanks
  • fj20fj20 Member Posts: 4
    Searching for Tribute incentives and found a significant finance savings but the dealer has no knowledge of it. How can I verify it and tell him about it? 4.9% sure beats 7.9% if I can show him the proof he says he will get it for me.
    Thanks
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Shayesky, yes I have seen the most recent Mazda incentives. What vehicle are you interested in seeing incentive information for?

    Car_Man
    Smart Shoppers / FWI Co-Host
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Fj20, where did you see that Mazda has special financing available on the 2001 Tribute? I haven't seen any special finance rates for this truck yet.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • fj20fj20 Member Posts: 4
    car_man
    Found it on the Edmunds site yesterday while looking for rebates and incentives. It does have a general disclaimer about not applying in all areas though and thus the question is;
    Where does Edmunds get the info and can anybody access the same info? If it is correct the dates are from 9/07 through 10/20
  • shayeskyshayesky Member Posts: 4
    Car_Man, I was interested in the 626 ES V6 sedan with 5spd manual. Thanks!

    Scott
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Fj20, I still do not know exactly where you found this information on this site. If you could provide me with a link to the page that contains this info I would like to take a look at it. Although I am not aware of any special financing programs on the 2001 Mazda Tribute at this time, it is entirely possible that there are some regional programs out there on this vehicle. The incentives information that is available on the Edmunds.com Web site is supplied by vendors that get their data directly from manufacturer bulletins that are sent to dealerships. This data is not available to the general public, other than through the incentives pages here at this site.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • fj20fj20 Member Posts: 4
    http://edmunds.com/edweb/Incentives.html
    Scroll down to the mazda 2001 section and it is there.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Huh, so it is. It certainly looks to me as though a special financing program does exist on the 2001 Tribute. Like Mazda's other incentives this program is probably also available through October 2nd.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • fj20fj20 Member Posts: 4
    Now where can I find more official info to convince the dealer that it really exists. Any Ideas? there is no info on the Mazda home site or any where else I have searched.
  • grrrldocgrrrldoc Member Posts: 3
    Hi- I am trying to help my 85 year old neighbor (who has a computer but doesn't really use it!) to not get duped by a dealer. He is interested in a 2000 VW Golf or Jetta (I think he just wants the basic model, no frills). I am confused by this one point - when there is a dealer incentive (as there currently is of $750), does one subtract that from the TMV, or is that already figured into the TMV? Am I understanding it correctly, that a fair price to offer would be the TMV plus the destination charge, minus the dealer incentive? Thanks!
  • jelliotjelliot Member Posts: 8
    Interesting choice of cars. An 85 year old gentleman doesn't really fit with the usual VW demographics. Is he sure he's going to be comfortable? I had some folks around that age sit in a Passat a couple weeks ago and they couldn't get comfortable in it. What's his motivation for wanting a VW?
  • grrrldocgrrrldoc Member Posts: 3
    I really don't know - he also mentioned that they were looking at Toyota (which they already have)and Hondas, but he seemed to be leaning towards the VW...His wife is the driver for the two of them, and they are a very active couple (swim and walk daily)...He just said they wanted another small car and I guess he liked the looks of the VW...
  • vwguildvwguild Member Posts: 1,620
    Correct price should be $250 under invoice...Dealer makes $500. TMV not
    applicable here...old units must go...
    Be aware though that they cannot take
    advantage of Special VW financing though...
    No 2 bites of the apple. If they want the
    financing dealer looses the incentive $$$.
    APR *A*tier is 2.9% for 24 months, for example.
    PS
  • vwguildvwguild Member Posts: 1,620
    Destination is included in Invoice Price.
  • grrrldocgrrrldoc Member Posts: 3
    Thank you VERY much - one last question, though -what about the 2% holdback if they want the Jetta? Does that get deducted from the invoice in addition to $250, so that the dealer only makes a profit of $500 ?
    Thanks again
  • vwguildvwguild Member Posts: 1,620
    Holdback is transparent, and not part of your
    negotiation...it is not part of the invoice...
    Glad to help...PS
  • bradleyz06bradleyz06 Member Posts: 4
    Looking for input regarding deals on 2000 Maximas. When the low financing expires on 10/2/00 will Nissan offer better rates/incentives? Also are there many 2000 maxima SE's available? For that matter will the financing and rebates, etc get better for all cars after 10/2/00? Any predictions/knowledge welcome.
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Hi bradleyz06. I believe that Nissan is currently offering 3.9% to 6.9% special financing on the 2000 Maxima depending upon the length of loan that you take. It is difficult to predict future incentives with 100% accuracy, but if I had to guess I would probably say that I do not expect any significant improvement in this financing program for next month.

    As far as cash incentives are concerned, Nissan hasn't offered any cash on either the 2000 or 2001 Maxima yet. It certainly looks to me as though they are trying to hold off from doing so for as long as they can. I personally do not expect them to introduce any cash on the Maxima for next month, but one never knows for certain until the actual program is introduced. In fact, the people at Nissan probably will not know for certain what they are going to do until they have a good idea what September's sales figures look like.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • andym5andym5 Member Posts: 1
    I am looking at a 2000 Mazda B3000. Edmond's is listing a $1750 rebate and 0/2.9/4.9% financing. The dealer says $1500 rebate or $750 rebate and the special financing. Are they being straight? Are they getting any extra $ I don't know about?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Andym5, according to all of the information that I have seen, Mazda currently has $1,750 stand-alone consumer cash or $1,000 cash that may be combined with 0.0% financing for 24 months, 2.9% for 36 months, or 4.9% for 49 months. It is possible that the incentive amounts vary slightly depending upon where you live. I suggest that you place calls to another couple of Mazda dealerships and see what they tell you the incentives on this truck are. If they all jive chances are that they are telling the truth. Besides, it never a good idea to put all of your eggs in one basket when shopping for a new vehicle. Comparison shopping is one of the best ways to make sure that you are getting a competitive price on the car or truck that you want for your part of the country. Good Luck.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • bradleyz06bradleyz06 Member Posts: 4
    Thanks Car_man for the info regarding 2000 maximas. I guess I'll wait to see what happens. MSRP is not too much different, a little extra cost might be worth it for the 2001. Maybe they worked some bugs out.

    bradleyz06
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    You're welcome, bradleyz06.

    Car_Man
    Smart Shoppers / FWI Co-Host
  • mjk30mjk30 Member Posts: 1
    I'm in the process of buying a 2000 VW Passat GLS V6 w/ lux and cold wthr pkg and have negotiated the purchase price, $22,940 w/no trade. Now I want to take advantage of the low financing (5.7% for 4 yrs) that Edmunds lists and the dealer confirmed but I am being told that since they are 'giving' me the dealer incentive they cannot offer the special financing. They will do one or the other not both. Does this make sense or am I being hosed?
  • CarMan@EdmundsCarMan@Edmunds Member Posts: 38,514
    Mjk30, it frequently is the case that manufacturers' cash incentives can not be combined with their special financing programs. I believe that Volkswagen's dealer cash is one of those situations. If you want to take advantage of this special financing program, please remember that it is only scheduled to run through tomorrow. Even though there is a good chance that the current program will be continued, there are no guarantees.

    Car_Man
    Smart Shoppers / FWI Co-Host
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