Rebates, Incentives, APRs - Questions & Comments

tcdrake · April 2004

Does anyone know if Toyota will be continuing their low interest rate deal on Highlanders? if there is going to be a new deal?

carguy04 · April 2004

Hope I found the right board to post this question. I am a Ford employee, so I can get their A-plan price. I am thinking about buying a 2004 Focus, which has a $2500 rebate on it now. On which sales amount do I pay sales tax on... the A-plan price, or the A-plan price minus the rebate amount? The reason I ask is that I have received email price quotes from 2 dealers. One dealer calculates the sales tax after the rebate has been subtracted from the A-plan price. The other dealer, his sales tax amount is $400-$500 more than what I calculate it should be for my area, either on the A-plan price or on the A-plan minus the rebate.
While I am here, I also have another A-plan question... Is a Ford dealer allowed to charge any extra fees for handling & documentation to an A-plan customer? I haven't been able to find anything in writing yet which defines the A-plan policies & rules. Thanks.

CarMan@Edmunds · April 2004

Hi tcdrake. Toyota's March incentives are scheduled to run through Monday, April 5th. It is difficult to say what it will do with its future incentives, but if it had special financing rates on the 2004 Highlander in your area in March, there is a decent chance that it will again in April.

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CarMan@Edmunds · April 2004

Hi carguy04. This definitely is an appropriate place for your question. Sales tax rates and the rules for their application vary from state to state, so they are difficult to generalize about. Having said that, I will anyways

. Generally speaking, consumers have to pay tax on customer cash incentives, but not on dealer cash incentives. I believe that the thinking behind this is that dealer incentives are considered to be manufacturers' price adjustments. So if I am not mistaken, you will probably have to pay tax on the price of your vehicle, prior to having the customer cash incentive deducted form it.

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ddelise · April 2004

Hello -

Just wondering what are the April figures for the Buick RDV. I am looking for residual and moeny factor for 36 and 48 month programs (12k miles/yr). Also, is there any dealer or consumer lease cash available?

Finally, what does GM charge for the aquisition fee for leases?

Thanks - Damon

CarMan@Edmunds · April 2004

Hi Damon. This question is more appropriate for the "Lease Questions Ask Here" discussion that appears over on the Finance, Warranty, and Insurance Message Board. I will be more than happy to try to answer any questions that you have on leasing in that area. Please use the following link to go to that section of the site: "Lease Questions - Ask Here" Apr 5, 2004 11:36pm. Thanks.

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cynic · April 2004

Hi Car_man,

What are the customer/dealer incentives for this month on this car?

Thanks!

fredvh · April 2004

Do you know what the incentives are for the Toyota Camry for this month?

CarMan@Edmunds · April 2004

Hi cynic. Infiniti is still offering $2,000 dealer cash or 1.9% special financing for up to 3 years and 2.9% for 4 - 5 years or a special lease program on the 2004 I35 in April.

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CarMan@Edmunds · April 2004

Hi fredvh. Toyota divides the country into a number of different regions, each each one having different incentives programs. I would be more than happy to fill you in on what I have heard about its April incentives on the camry, but in order for me to do so, I need you to tell me what state you are in. Once I have this additional info I should be able to help you out. talk to you soon.

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douginma · April 2004

Hi Car_man,

Can you take a look at message #1760???? We're anxious to get your feeling on how the V70 rebates/dealer cash will be handled/increased.

Please let me know your reply to message #1760.

fredvh · April 2004

2004 Toyota Camry current incentives for the month of April for the State of Michigan? The most recent incentives expired April 5.

CarMan@Edmunds · April 2004

Hi douginma. Unfortunately it is difficult to tell what manufacturers will do with their future incentives programs. It certainly is possible that Volvo will have dealer cash allowances on the V70 at the end of this model year that are similar to the ones that it had at the end of the last model year. However, most automakers base their incentives upon how well their vehicles are selling. If the auto industry is having a strong year it is possible that Volvo's incentives on this car will be lower, vice versa - and more likely - if the auto industry is having a slow year it is entirely possible that Volvo's cash incentives will be higher at the end of this year. For April, Volvo continued the $2,000 dealer cash that it had on the 2004 V70 in March unchanged.

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CarMan@Edmunds · April 2004

Hi fredvh. Toyota is currently providing 0% APR for 36 Months, 1.9% APR for 48 Months, and 1.9% APR for 60 Months on the 2004 Camry in the state of Michigan. I have not seen any info on any cash incentives on this car in your area though.

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redlandsmike · April 2004

Can anybody help on this one?? I bought a new Tundra on April 3rd with 0% financing for 48 months. Now 20 days later the dealer says they have to 'rewrite' the loan.(Toyota will not finance it). The rescission clause says they have to rescind the contract within 10 days of the signed contract. It looks like their problem. Any ideas how to proceed?

rroyce10 · April 2004

...... ** .(Toyota will not finance it). **

            If you don't qualify, then you just don't qualify for it .. it's a Toyota financial decision, not the dealers.

           The best thing you can do right now, is to be on the horn to your personal lender and/or Credit Union and see what rate you "do" qualify for and "how much" they will lend you .. is there a trade involved with a pay-off .?

                        Terry.

grapevinetx · April 2004

Do what Terry recommends and do it quickly. Also contact on-line banks such as Capital One and see what they can do for you, especially if youre not a credit union member. The on-line banks generally offer better deals than traditional banks.

Unfortunately you have to consider that this may or may not have been an honest mistake. There are a few shady dealers out there who will play the trick of telling you that you will be approved for a better financing deal than you actually qualify for, encourage you to take possession of the new vehicle before the financing is approved, and then call you back a few days later and say that you will have to come back in and sign a much less attractive finance contact. By this point, they have unloaded your trade and it is impossible to unwind the deal.

Did you make an error in your original loan application, in terms of your earnings, other debt level, etc? If no, the odds are higher that youve been played. If you feel that this is the case, you should file a complaint with your local Better Business bureau and with your state Attorney Generals office. They may be able to help, especially as you indicate that the 10 day rescission period has passed.

I hope it works out alright for you. I understand that its Monday morning quarterbacking at this point, and I dont mean it as that but as a caution for others, the sure way to prevent this problem is to never ever agree to take possession of the new vehicle until after you have in hand a finalized finance contract approved by the lender.

CarMan@Edmunds · April 2004

Hi redlandsmike. I agree with the previous posters. If Toyota will not approve you to finance your vehicle at the interest rate that you were told you would receive you will have to finance your truck through a different bank or at a different rate. It is always in consumers' best interest to get pre-approved to finance the car or truck that they are interested in at a local bank or credit union. Doing so gives you a good idea as to what sort of interest rate you will have to pay and motivates dealers to try to beat your rate. Go out and see if you can get approved to finance this vehicle on your own and then go back to your dealer and tell them that you can finance it through your own bank at X%, but you will finance through a loan that they set up if they can beat your rate.

Toyota almost always provides customer cash or special financing rates on its pickups. Since you were not approved to use the special rates, you are eligible for any cash incentive that is being provided on this model. When you go back to tell your dealer that you are financing through another bank unless they can beat your rate, make sure to have them reduce the selling price of your truck by whatever cash incentive is available on it at this time. If you tell me what state you are in, I would be more than happy to tell you what sort of customer cash is available on the '04 Tundra in your region right now.

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moparbad · April 2004

How much "marketing assistance" is there for dealer on 2004 VW Jetta GLS TDI Wagon? I think there is $1000 to dealer on the TDI and $1500 on the non-TDI Jetta. This is for Chicagoland region.

CarMan@Edmunds · April 2004

Hi moparbad. Volkswagen is currently providing $1,500 "marketing assistance" on 2004 Volkswagen Jettas that are paid for with cash or are financed / leased through any bank other than VW Credit. If you decide to take advantage of VW Credit's special financing or lease programs, your Jetta would be eligible for $1,000 "marketing assistance." The only '04 Jetta models that are not eligible for this cash are diesel models, which are eligible for $750 and 4-cylinder GLI models, which don't have any cash available on them.

Just in case you are a returning Volkswagen owner, you may be interested in knowing that Volkswagen recently enhanced its loyalty cash on 2004 models from $500 to $1,000.

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moparbad · April 2004

So, for a current VW owner buying a Jetta GLS TDI (diesel) Wagon, financing thru VW Credit, the dealer would obtain $750 marketing assistance and there would be an additional $1000 loyalty cash?

CarMan@Edmunds · April 2004

You are correct, but the owner loyalty cash is only available to consumers who finance or lease through VW Credit.

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moparbad · April 2004

Purchased the TDI Jetta Wagon. Received the $1000 owner loyalty and the price was already $1000 under invoice. Thank you for the assistance Car_Man.

CarMan@Edmunds · April 2004

You're welcome, moparbad. Thanks for the update. Enjoy your new car

.

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fredvh · May 2004

Has anyone heard if the $1000 rebate on the Camry will continue this month?

CarMan@Edmunds · May 2004

Hi fredvh. Toyota is providing a similar level of incentives on the 2004 Camry in May as it was in April in most of its regions. If I remember correctly, you are in Michigan. The only offer that I have heard about in your area is a special financing program that provides 0% financing for 36 months and 1.9% APR for 48 to 60 months.

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largerladybug · May 2004

I leased a 2003 Rio RLX last February from a local dealership who has since gone belly up. Now, I'm told by Kia Canada that my 5 yr. maintenance package is null and void because it was a promotion offered by the dealership and is not the responsibility of Kia Canada. The reason I went to Kia in the first place was because of their television (national) ads for the Drive for 5 years maintenance package. The dealership offered me the 5 yr. package for $1299.00, and they settled for $500.00. I've had 2 oil changes and a tire roation for my $500.00. I am furious with this company and will NEVER purchase another Kia vehicle as long as I live. I don't see how this company can get away with this sort of out integrity.

renees · May 2004

Until 6/1/04, Impala's rebate is $3,000 on the Impala. Last year in September, I know the rebate was $4,000 in the NE. Was it the same in the Midwest? I know to buy at the end of the month, but if Chevrolet has a history of increasing rebates in the fall, I'll wait. Also, maybe the rebate is already high enough and it wouldn't increase in the fall. Any experienced opinions?

03oddity · May 2004

Recently Acura was offering 2.9% financing here in So Cal (not sure of term--not that important anyway). Is that still on for May? Looking at 04 TL 5AT Navi.

rinebird · May 2004

I got an email(5/8) from a Toyota dealer in NJ they are offering rebates below invoice on most Toyota car etc. Go to Toyotas web site.

CarMan@Edmunds · May 2004

Hi renees. As you are already aware, General Motors is currently providing $3,000 customer cash on the 2004 Chevrolet Impala in May. It is difficult to predict what a manufacturer will do with its future incentives programs with 100% accuracy, but I definitely think that there is a good chance that this car's cash incentives will increase at some point in the next several months. In fact, in March GM was actually providing $3,750 ($3,000 customer cash and $750 bonus cash) on this car. It cut back on its incentives for this model a little though when it rolled out its current "Truckfest" promotion. If you are not in a hurry to buy your new car and it will bother you if GM does end up increasing its incentives on this model then you might want to wait to buy.

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CarMan@Edmunds · May 2004

Hi 03oddity. Unfortunately, I have not heard about any special financing rates being offered by Honda on the Acura TL in May.

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rolfneu · May 2004

Unless the car manufacturers develop, produce and promote more fuel efficient engines and lower weight vehicles, our thirst for oil will increase while availability will decrease. We have an energy crisis and we can't solve it short or long term by drilling for more oil.

All I keep reading is that the car companies are planning to introduce still more powerful and bigger vehicles. Its absolute craziness. Its like they have put our vehicles on steroids.

If the auto companies will design intelligent, reliable, safe and attractive/stylish vehicles with hybrid or fuels efficient engines, the public will buy them by the millions. Stop producing gas hogs and produce vehicles that meet our needs and are considerate of our environment.

rroyce10 · May 2004

..... l.o.l.... this coming from someone who drives an SLK and a Q45 ...

Hows that go again .? .. those who live in Glass houses ..?

Terry.

steine13 · May 2004

The car companies, by and large, will build according to consumer demand. Having built, they will use their marketing power to sell whatever they've got. I don't see how they are to blame for the fact that most of the guys where i work commute in 14mpg pickup trucks. Personal choice is the American way, and stupid choice is the fault of the choser, not the chosee.

My solution "would have been" to raise the tax on gas by 5c/gallon every year, starting at least a decade ago. That would have accomplished a number of things:

(i) it would help to account for the hidden costs of oil. The 5th Fleet comes to mind.

(ii) it would give government an additional source of income, and would probably gobbled up as soon as it comes in... but done properly, it would have paid for tax cuts without increasing the deficit. Now there's a thought.

(iii) It would have reduced demand for gasoline as the price rises... people would still drive the same number of miles, but they would use more efficient cars. Somehow, Europe has at least as much fun driving as America does, but manages to do it with roughly 1/2 the fuel.

(iv) It would have created a market for small cars that US manufactuers have never been succesful in... this is likely the cause why this has never been tried. I tend to think that somehow, the world's greatest manufacturing nation might have come up with a way to build good, fuel-efficient cars, but maybe I'm wrong.

(v) gas would be over $2 today, just like it is anyway, but the "extra" would sustain the US government and not the government of that staunch ally, Saudi Arabia.

But what do I know, I just live here...
-Mathias

CarMan@Edmunds · May 2004

Hmmmm, I'm not sure how we got on the subject of fuel economy and gas prices in this discussion, but this area is for consumers to ask questions about or to discuss manufacturers' current incentives programs. There is probably a discussion or two on gas prices over on the News & Views Message Board for those of you who are interested in continuing this discussion there. Let's try to keep the talk in this area focused on incentives. Thanks.

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vikd · May 2004

...outstanding post!

See, economics arent that tough...

Regards... Vikd

jipster · May 2004

Hello all. I am contemplating a new Toyota Highlander or Sienna. Toyota is offering 0% financing for 36 months or 1.9% for 60 months on the Highlander...nothing on the Sienna. If a dealership offers such a low interest rate, does this mean they absolutely positively won't go down on the sticker price? Obviously they need to move these vehicles. How much could you expect to get over invoice. Would shooting for $400-$500 over invoice be reasonable?

kyfdx · May 2004

If the low rate is offered by Toyota Financial Services (and I believe it is), then it likely will have no bearing on the price you can negotiate with the dealer.

If it was a low rate the dealer had to "buy down", then that would affect the price you pay.

regards,
kyfdx

CarMan@Edmunds · May 2004

Hi jipster. Kyfdx is absolutely correct. The special financing rates that are being offered on the Toyota Highlander in your area are being paid for by Toyota and should not have any effect upon your ability to negotiate an attractive selling price on this vehicle. In fact, I would go as far as to say that the fact that Toyota has to provide incentives on the Highlander means that it is not selling as well as it would like and you will probably be able to negotiate a significantly larger discount on it than you will be able to on the Sienna. I am not personally familiar with what the market is like for this particular model in your area right now, but I definitely would not be surprised if you were able to buy one for $400 to $500 over invoice. Before going back to any dealerships, stop by the following discussion to see what others are paying for similar trucks right now: goldston "Toyota Highlander: Prices Paid & Buying Experience" Mar 9, 2001 7:25pm.

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CarMan@Edmunds · May 2004

Many of you who visit this discussion will find the following news item that was recently posted here at Edmunds.com interesting.

Ford, Chrysler Boosting SUV Rebates

Date Posted 05-13-2004

With sales of big SUVs expected to fall as gas prices continue to rise, Detroit's automakers are boosting incentives on their large sport-utility vehicles. Both Ford and Chrysler have increased rebates on 2004 SUVs: Ford has added a new deal for $1,000 cash back and zero-percent financing on the Explorer, Expedition and Excursion SUVs and the Freestar minivan, while across town, Chrysler has raised the rebates on the 2004 Durango to $3,500. In lieu of the first offer, Ford gives shoppers a choice of a $3,000 rebate. General Motors has competitive offers of rebates and incentives on its big SUVs. Both Ford and Chrysler are offering an extra $1,000 in rebates to buyers who finance their new vehicles through the automakers.

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wlbrown9 · May 2004

Walked into the GMC dealer Tuesday afternoon, May 11, to look at Envoy XL. Had been there in about January. Kind of recognized the sales manager. Talked to him since I could not remember the sales guy's name from January. He looked me up in the lead computer and confirmed that that sales guy was no longer at the dealership. Before hooking me up with a different salesman, he said "Timing is everything. GM just added $1000 to the rebate today." (May have actually be an extra $500 on the XL since it think it went from $3500 to $4000 plus the $1000 Truckfest.)

Worked with them some. Took an Envoy SLE home for the wife to test Thursday night. Went back in Friday morning and moved up the SLT model. Decided color. (Discovered we qualified for GM Supplier pricing program.) Worked on financing, dealer doing slightly better than my credit union was giving. Worked with dealer and got the trade to a reasonable amount. (2000 Jeep GCL, with gas prices going up and rebates going up, it's value is not going to go up either.)

Picked up the Envoy XL Friday night. Pretty easy deal...extra rebates saved a little money. I doubt the gas is going to be much/any worse that on the Jeep.

Timing was right for me. But if a consumer does not want/need a new one, I doubt the extra rebates are going to make many more folks run out an buy a new SUV.

jipster · May 2004

Thanks for the info Kyfdx and Car_man. The link was very helpful. It looks like the Toyota Highlanders are selling around invoice.I noticed in todays paper that GM is offering $5,000 cash back on 8 of their large sedans and on most of their SUV's(ends June 1). I had also been considering the Buick Rendezvous.So, with all this cash back and low financing rates floating around...the question is will I be better off financially by waiting another 3-4 months?(i.e bigger rebates WITH lower financing) Gasoline prices are predicted to continue to rise, though many analyst feel this won't have an effect on sales till it rises much higher. Any thoughts on this fellow Town Hall members/Car_man?

CarMan@Edmunds · May 2004

You're very welcome, jipster. You're absolutely correct. General Motors recently enhanced its customer cash on the 2004 Buick Rendezvous to a whopping $5,000. The highest that I have remember seeing GM's customer cash on this particular model is when it hit $5,500 on the '03 Rendezvous in some regions back in November 2003. Incentives do generally increase as the model year progresses, but I find it hard to believe that GM's cash support will get much higher than five grand on this model. You may be able to squeeze another $500 out of them by waiting, but certainly not enough to make a big deal about. Of course, it is difficult to predict what automakers will do with their incentives with 100% accuracy.

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renees · June 2004

Have you noticed that the Impala rebate has dropped to only $750? Do you think this is temporary? Last month, it seemed that you were rather confident they would increase the rebate in the next several months. Were you thinking like September or October? I could even wait until November or December. Thanks for your advice.

CarMan@Edmunds · June 2004

Hi renees. General Motors never just drops its incentives on vehicles like that. I have a feeling that Edmunds has not updated its site with General Motors' new June incentives yet. GM is still providing $3,000 customer cash or 0% financing for 5 years on the 2004 Chevrolet Impala in June. The only major change this month is that GM has upped its cash incentive on this car to $4,000 for current GM owners.

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renees · June 2004

Hello Car man. That's a relief. I'll keep checking the Edmund's info. I wish I could qualify as a current GM owner. I have a Chrysler and my husband has a Mercury (last time I had a GM car was in 1988, and it was pre-owned). Maybe in October/November (which is the exact time I want to buy), the $4,000 rebate will be available to anyone, and possibly will be even higher. Do you think that's possible. (I'm so glad you guys are out there. I've been able to research what vehicles are available for what I want, and decide before even going to dealer. The information you provide is a tremendous help.) Thanks again for your input and advice.

tetedepierre · June 2004

Does anyone know what incentives Cadillac is offering on the CTS. I read that they are upping incentives but the Cadillac site says nothing about the CTS.

CarMan@Edmunds · June 2004

You're welcome, renees. It is difficult to say what the cash incentives will be like on this car in October / November, but it is very safe to assume that it will be at least as high as it is right now.

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CarMan@Edmunds · June 2004

Hi tetedepierre. Let me begin by saying that General Motors' incentives are different in Canada than they are in the United States. Here in the U.S., GM is currently offering 1.9% financing for 3 years, 2.9% for 4 years, and 3.9% for 5 years or $2,000 owner loyalty cash on most 2004 Cadillac CTS models.

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Rebates, Incentives, APRs - Questions & Comments

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