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Car_Man
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For those of you not aware of the terms, the low interest rate is instead of taking the rebates that were in place. However, depending on the make and model, there are some rebates that can be taken with, or "stacked" with the zero percent financing. Some models are giving a loyalty rebate of $500 or $1000 if you buy or lease another car of the same make. GM is apparently still offering the Oldsmobile loyalty rebate on the purchase of an Oldsmobile, or another GM car or truck. There are also "conquest" rebates, meaning, for example, if you own a Ford and buy a GM product, you can get another rebate. The same is true if you own a GM product and buy a Ford.
As of this date, (Sept. 21, 8:20 a.m., CST) Daimler-Chrysler hasn't responded to the GM and Ford offers, but it seems very likely that they will soon.
The one thing I haven't heard GM or Ford offer is the chance to get out of a lease early without any penalties. GM was offering that earlier on SmartLease contracts, but it only applied to leases that ended up to March 2002. If GM offers that again on my lease that is up in June 2002, I will run, not walk, to my local dealer. And, by the way, my next car will be a purchase, NOT a lease.
Anyone on this forum have any pull with GMAC to make that offer??
Joe
That is easy to fix! Here's how you do it. When they slide that contract across the table, ask them if ALL rebates, funds, offers, cash back or SPIFs (Special Production Incentive Funds) from the manufacturer, the dealer's group or the lender returned or refundable to the dealer have been applied to the purchase price. After they smile and say yes, with the contract in front of you, write the following, IN INK on the contract:
"Dealer states all special funds, rebates or offers have been disclosed to the retail customer and applied to the price. Dealer states that any rebates or refunds of any kind except the normal dealer holdback in effect at the time of purchase but not known or disclosed to the purchaser will be refunded to the purchaser." Then initial it and have the dealer do the same. If the manager has already signed it, have the manager initial it, even if you have to wait. If the dealer refuses, then you know they didn't disclose everything to you, regardless of their excuses.
Why do this? Simple; your contract likely contains the language in one form or another stating the following, even if in ultra-fine print on the back, that the purchase agreement is the only binding agreement between the seller and purchaser, and the contract supercedes all offers ORALLY OR IN WRITING. That means that if the lender, manufacturer or dealer's group has a secret rebate that they didn't disclose to you, but you find about it later, they either have to refund it to you or the contract is null and void. If you find out on Tuesday that the manufacturer had a rebate in effect on the car you bought Saturday but the dealer lied or actually didn't know about it (NOT likely to happen) and therefore kept it, you can take the contract back to them and demand to receive the rebate, or return the car to them. Without that language on the contract, you are powerless to get the money.
If you remember NOTHING else about this message, remember this: A written contract overides ANYTHING that the dealer promises you verbally. He can promise you anything in the closing room, but if it isn't listed on the paperwork and signed by both parties, it's as if he didn't say anything.
Happy hunting!
Joe
Car_Man
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Car_Man
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next few monthes.
Terry.
It's much easier than "He said , she said " ..
Terry.
Car_Man
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I've noticed two exceptions about rebates and incentives.
1. Some manufacturers are S-L-O-W to update their web sites. Often news sites like autonews.com or thecarconnection.com have news about rebates before they are on the manufacturer's web site.
2. Sometimes there are regional deals between the dealer and the manufacturer that are not posted ANYWHERE. Here's a couple of examples: Last year, I bought a new Chevy S-10 truck from an honest Chevy dealer. He told me about an additional $500 rebate from Chevy, and a $750 dealer cash offer that wasn't publicized. So, I got a $3,250 rebate when all the Chevy ads said the rebate on the S-10 was $2,000. My local Buick dealer has told me of two rebates on Regals that are not widely publicized that CAN be used with the zero percent financing GM is offering right now. One is a $500 loyalty rebate if I already own a Regal (I do) and a $500 "conquest" rebate if I own a non-GM product, which I also own. So, on a 2001 Regal, I can take the $2000 GM rebate, plus the other two $500 offers for a total of $3000, or $1000 plus the zero percent offer. On a 2002 Regal, I can take the zero percent and the $1000 in rebates, but the zero percent is not for as many months as it would be on a 2001 model.
The bottom line is if you are fortunate enough to have an honest dealer, he/she will put all the rebates on the table to make the deal. But, if you are not sure, that is when the disclosure language I listed earlier would protect you.
Joe
Terry
I figure I come out ahead or is my math off? Suggestions please.
Should I cancel the contract forfit the 1k deposit and then repurchase it from the dealer? it would be 2.9 vis 5.9 so I figure I still come out ahead or is my math flawed?
Car_Man
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GMAC called that early buyout a "Pull Forward" program. I have a Smart Lease, but at the time they offered that early out with no penalties, I still had too much time left on my contract in order to take advantage of the offer.
Right now, GMAC is not doing any early out options without whatever early payment fees are required in your written contract.
HOWEVER, as of a few hours ago, the bombs started falling over Afghanistan. If the war escalates, or the terrorist try some more cowardly, gutless, bastardly, underhanded and just generally sick attempts to kill more Americans the way they did on September 11, car sales could take another nose dive. If that happens, GM may have to sweeten the pot a little more in order to get people buying. That MAY include another "Pull Forward" offer.
You may want to go to the website for the GM brand you are interested in and send them an e-mail saying you would buy one of their cars or trucks if you could get out of your Smart Buy contract without any penalties. I've already done that, but if more people did the same, maybe it would get them off of their hands and seriously consider this.
Joe
Thanks
David
Car_Man
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1. WHY does a Chevy dealer still have a leftover 2000? Does it have a manual tranmission in a market that usually buys automatics? Small engine vs. the big engine? No A/C, stereo or other popular and common options? If you buy an unpopular truck when it is new, it is not going to be any more in demand when it is 2, 3 or 4 years old.
2. Look at the window sticker and see if Chevrolet originally sold and delivered that truck to the dealer that has it now. If not, it may have been part of a dealer trade or bought at a HUGE discount from a closed or bankrupt Chevrolet dealer (yes, it DOES happen!) If the "dealer sold to" isn't the same dealer you are dealing with, you want to ask the entire history behind this truck. If the dealer doesn't have the window sticker, he is violating federal vehicle regulations; go find another truck at another dealer. There is nothing wrong with buying a truck that was part of a dealer trade, but if he bought it from a bankrupt dealer, he may be able to discount the truck much more than he is letting you know.
3. Was the truck damaged in transit, and that is why it has remained unsold? Was it tied up in an insurance dispute between the carrier, the dealer, the manufacturer and the insurance company? If so, the dealer may have not been legally allowed to sell the truck until all claims were settled. Was it flood damaged during any of the recent storms? You didn't say what state you are in, but there have been many areas with record floods. If so, you may be looking at a truck that had major damage. ASK; even if your state doesn't have strong manditory disclosure laws, they should give you a straight answer to this question. If they say ANYTHING other than "NO, this truck was not damaged in transit, in shipping, while on the dealer's lot or in any other way, shape or manner" AND be willing to put that in writing, then, once again, find another truck at another dealer. If he DOES state the truck was damaged, but tries to claim it was "only minor stuff," then ask to see all the workorders used to repair the truck. Even if it is fixed "in house" in his own shop, he will have paperwork to track things like parts, labor and other costs.
4. VERY IMPORTANT: This question is many times more important than whether the truck has ever been titled. Has it ever been placed in what Chevrolet calls "in service." The ISD, or "in-service-date" is what starts your GM warranty. While the truck may have never been titled and only have been driven a few miles, it may have been placed in-service in October, 1999, which means you may be buying a new truck with very little warranty left on it. If that dealer won't give you a good answer, ANY Chevrolet dealer can check the GM database for the truck's ISD with only the vehicle's VIN.
5. As for the discount disappearing when you mention trade, it is more a symptom of the make of your trade. Chevy dealers don't have much demand for a used Dodge car. You would probably be much better to sell your car outright, even if you practically gave it away, since most Dodge Intrepids don't bring anywhere near their book value. They were not extremely big sellers when they were new, and now it's just an average used car. By selling it yourself, you could walk in with cash and REALLY negotiate a huge discount.
Good luck,
Joe
I like to compare it to the rebates you get at a computer store. You typically pay the full price and tax and you get your money back in the mail.
The only difference here is you get your money back right away and apply it to the purchase price.
If you bought a PC for $1000 and it has a $200 rebate you will still pay $1000 for the PC along with taxes and then get your $200 rebate back later.
Rich
rich
I think you are unhappy with the way its done .. That's your local Government at work.
Also remember if you are getting some of the dealer cash, that goes to the 3rd line and that's what changes the difference -- all rebates go the end..the net, just like if you putting cash down ..
I have read some of your previous posts, and as much as you might like to, you just can't beat the Dealer ..and the Government at the same time..
Terry.
The Rebate is taxed because it is really like handing you the cash...Incentive $$$ should be
viewed as a discount...
Car_man
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Minus trade....16000
Taxable amt. ..17000
Plus tax....... 1190
------
$ 18190
Minus gm discount 5000
Minus gm mc cash 1500
minus gm rebate 1500
minus gas tank cert 500
total to be financed $9690
This is how it worked for me on my
recent truck purchase in NY.....Geo
GM $ 1500 2500LD rebate (for anybuyer)
also GM employee special 2.9% Int (3 yrs)
And NO ADVERTISING FEE for GM employee-
family either !!!!!!!
But I paid $40 for plates and $75 document fee
$15 (?) NYS state inspection fee
Sorry me bad .....forgot.........Geo
If you have the rebate sent to you (takes 6 weeks), you will also get a 1099 .. that's not good ..l.o.l.
Terry.
Any thoughts on this topic would be appreciated.
Art