Rebates, Incentives, APRs - Questions & Comments

CarMan@Edmunds · July 2005

Hello glockfan. General Motors' new July incentives start today, July 6th. As expected, it extended its Employee Purchase Program through August 1st. It did not introduce 0% financing on all vehicles in conjunction with this program though. A few, slower selling models, like the Chevrolet Cavalier and the Chevrolet Venture have 0% financing for up to 5 years available on them right now, but most models do not. In fact, GM actually raised its special finance rates on a number of truck by a point or two from June. If you let me know what model or models you are interested in, I would be more than happy to give you an idea of what the specific incentives on them are like.

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CarMan@Edmunds · July 2005

Hi adiehl13. Toyota is scheduled to introduce its new July incentives today, July 6th. I would be more than happy to give you an idea of what its new program is like on the Sienna that you are interested in, however since its offers vary depending upon which one of its twelve regions you are in I need you to tell me what state you live in first.

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CarMan@Edmunds · July 2005

The report that you read was correct, nortsr1. GM extended its Employee Purchase Program through August 1st, DaimlerChrysler introduced an Employee Purchase Program of its own, and rumor has it Ford will do the same today as well.

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CarMan@Edmunds · July 2005

Greetings purplebug. Consumers are normally eligible for whatever incentives are available on their ordered vehicles when they physically take delivery of them. So you are in luck, you should be able to take advantage of DaimlerChrysler's new Employee Purchase Program on the vehicle that you are getting.

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david y · July 2005

Car Man,

I'm a little confused on the GM Employee Pricing. Is this simply another way of GM giving manufacturers rebates to the consumers? Otherwise this would significantly cut into the individual dealer's profit margin. If this is the case, should I still negotiate on price, then take off the current cash rebate plus the amount of the employee pricing "rebate"? If so, this could net a very very good price on a new GM, otherwise the pricing is about the same as it's always been if you were a good negotiator. Thanks for taking the time to fill me in on this one.

David

96corolla · July 2005

I'm in the same boat as the guy above on the Sienna. I just heard today that Toyo has removed all incentives for July. I'm upset at myself for procrastinating and also concerned that this is permanent. I definately don't think there will be incentives on the 2006 which I don't believe will be available until mid-late fall and I'm worried that 05 incentives won't be back. This can be the start of Toyota taking action to help GM be more competitive...i.e. rumors of price increases, etc.

What do you think Carman?

fredvh · July 2005

Where did you hear the news about Toyota's July incentives?

96corolla · July 2005

Not sure if he was talking about ALL Toyota's or just Sienna, but he said Toyota took away all incentives for July.

Why, have you heard something different?

toyotaken · July 2005

Incentives from Toyota vary by region. In the SE region, where he's posting from, Toyota didn't continue the rebate that was avaialable. However, for example in the NY region they did dedide to continue the $1000 rebate and the special apr. They eliminated the rebate on the Corolla and Matrix for example here, but other vehicles they didn't change any of the programs that were in place up till the 5th.

Again, check with your local dealer to see what the incentives are in your particular area.

Ken

96corolla · July 2005

I'm in PA...right next to NY, and I'm somehow in the southeast region....doesn't make a lot of sense. Just bad luck I guess...but Thanks.

nortsr1 · July 2005

You can always buy the car in N.Y., get the rebate and then it will strill be titled in PA.

96corolla · July 2005

If the price was right, but I haven't contacted any dealers in NY. Only MD, so I have no contacts and it would depend on where in NY because I don't want to be making too rediculous of a ride. The MD guys are ~ 2 hours one way and their prices seem superior.

robr2 · July 2005

Not really an option. The rebate is based on your address, not where you buy it. Most offers like this specifically state "residency restrictions apply".

But try anyways - you never know.

toyotaken · July 2005

For Toyota, leases are based upon the residency of the customer. However, the special apr's, and/or rebates are based upon where you purchase the vehicle. We often have customers from Pensylvania here to take advantage of programs we have that PA dealer don't.

Just an FYI

Ken

96corolla · July 2005

You are too far for me(I see you are in Buffalo). Otherwise, I'd be sending you a PM to find out your price. thanks for the info tough. I have heard from my local dealer yesterday that new promo's will come out on the 11th, so I am hopeful they will bring the rebate back again.

purplebug · July 2005

YEAH!!! Got the call today that my baby is in. Now just what are the incentives available to me for a Limited Turbo 4A (with other options)? I looked at www.chrysler.com and did not see the special employee pricing for it. Is the program not available for that particular model? Also, what other rebates or special financing is available? I am so excited not even thinking straight, so I really need your help.

Thanks in advance.

jay46 · July 2005

Mr. Car Man

Any new incentives or special financing for either an Acura RL or Audi A6? I'm in the Northern CA area. Also are you aware of an Audi loyalty program? I currently drive an Audi. Thanks

CarMan@Edmunds · July 2005

Hi David. The GM Employee Pricing program in many cases does significantly cut dealer margins. Salespeople really don't like this program. Having said this, General Motors does provide money to dealers to give them a little profit on deals. It kicks back 5% of vehicles' MSRPs not including destination charges to dealers on vehicles that are sold through this program. I have heard that dealers in areas where there is intense competition will lower the selling prices of vehicles that are sold through this program even further, but this is definitely not a common occurrence.

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CarMan@Edmunds · July 2005

Don't worry, 96corolla. Toyota definitely did not get rid of its incentives for July. It would be pretty tough for them to cut back so significantly in a retail environment when the traditional big three automakers are giving employee pricing to everyone. If you let me know what model you are interested in and what state you are in, I would be more than happy to try to give you an idea of what its incentives are like in your area this month.

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CarMan@Edmunds · July 2005

96corolla, I believe that Pennsylvania is in Toyota's Central Atlantic region, not its Southeast region.

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CarMan@Edmunds · July 2005

Hi purplebug. Congratulations on the arrival of your new vehicle. In your post you mentioned that you are getting a "Limited Turbo 4A" but never said what model this is. If you let me know, I would be more than happy to give you an idea of what incentives are currently available on it.

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CarMan@Edmunds · July 2005

Hello jay46. Last month, Audi was providing $1,000 owner loyalty cash on the Audi A6. I have not seen whether it has continued that program for July, but I suspect that it has. If you check back with me in a few days I'll let you know for certain. As far as the RL goes, in mid-June Acura introduced $2,500 dealer cash on leases of it. This incentive was extended for the month of July.

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guss · July 2005

Just to help a bit, I believe she is the one that ordered the Purple (how could you forget that?) 2005 PT Cruiser.

mbuttery · July 2005

Car man (or anyone else who knows the answer): is the situation the same with the new Ford family / employee price?

96corolla · July 2005

I've been informed by dealers that the Sienna rebate has been removed effective 6-July. From reading this page, I see that it is still available is other regions up to 1K. I am hopeful that they will bring at least the 750 back for this region soon. Any insight?

purplebug · July 2005

I am so sorry, see how excited I am?!?!?! But guss was right. I am getting a 2005 Chrysler PT Cruizer Limited Turbo Auto (yes in PURPLE, HAHAHAHAHAHAHAHA)!! Thanks again.

mer · July 2005

I'm interested in incentives on Toyota Highlanders in Chicago, Illinois this month. Thanks.

purplebug · July 2005

Duh, also forgot to add, I am located in northern NJ.

muggsy · July 2005

Car_man,

Is this 5% kickback in addition to the 3% holdback that the dealer typically gets or does it include the holdback?

paul714 · July 2005

YES! Family Plan is running for Ford, Lincoln, and Mercury! Yep, you pay invoice price! AND..... CASH BACK offers!

bettersafe · July 2005

It almost seems to good to be true. $8000 off MSRP for a new Explorer !

kyfdx · July 2005

The Employee price is invoice minus holdback...

So, when the dealer sells at the employee price, he has ZERO profit margin... The 5% reserve is the entire gross profit on the deal..

regards,
kyfdx

bettersafe · July 2005

5% is still a good profit to make, as long as the vehicle does not sit in his lot for months.

danf1 · July 2005

That is 5% gross profit. We still have to pay the salespeople, managers, title clerks, accounting etc... How about the electric bill? If you want to be in an air conditioned building in the summer to do your deal then 5% won't cut it on its own.

ronsteve · July 2005

Let's talk gross profit here for a sec. How many deals have been done near or below invoice in the last few years, with little apparent help from the manufacturer?

So it's 5% gross profit. On a $24000 car, that's $1200. If that same car was being sold at $500 over invoice (plenty of those!), and the holdback was 3% then we're talking close to the same $1200 gross profit. Hell, slap a $300 doc fee on that and we're talking $1500. Are dealers hurting that bad at $1500 a unit? If they were, why have they been selling cars at such prices?

On a side note, anyone know how Mazda dealers are doing with S-plan pricing (part of Ford's employee pricing promo)? Are they being taken care of such that there is some gross profit to be had? My local Mazda dealer basically gave me a sob story that his yellow tag "employee" price makes the dealer no money, except 30% of the $299 doc fee. Of course the "sale price" plus the doc fee is equal to MSRP - rebate. I smell a load of bull here, and won't be buying from this guy.

bettersafe · July 2005

All:
What is the impact of the rebates/employee prices on 2 year old vehicles? Are they just not selling, or can they be bought at a corespondingly lower price? Seems to me that a 2 or 3 year old vehicle just off lease might be a good buy right now, if dealers have lowered their price in relation to new car prices. I'd expect that the price of a 2-3 year old car would need to be 50% of MSRP to sell., rather than 70% of MSRP.

Also the SUV market seems to have the biggest percentage rebates, trucks next and cars the smallest. Is this all MPG based or is something else happening ?

I was in the Toyota Avalon market, but the lower prices have me looking elsewhere ! I still can not get over the Ford rebates on Explorer. . . . .

BetterSafe (always looking for a good deal !)

monowrky10 · July 2005

Hello to everyone. New here. A week ago I made offer on 05 Hyundai Elantra GLS. On window MSRP 15669, dealer indicated at MSRP 151449 minus 50 his first offer. Good or Not? I countered with 13500 OTD. Vehicle had Cruise Control, mats, & CD as opts. They accepted. Deal fell throw at close. Long story.

Tomorrow I see 2nd dealer and plan to offer 13000 to 13.5 OTD for similar vehicle. Good or Bad offer? Rebate is included in price. I plan to neg. trade in after vehicle price is set.

What ja think?

travisimo · July 2005

I need some clarification. We're looking to buy a Dodge Grand Caravan and want to take advantage of the Employee Discount going on right now. So I've been doing some researching on Dodge's website along with checking the online inventory and prices. We'll be going to the dealership tomorrow, but I have a question first.

There is a little footnote on the Dodge website that says "Bonus Cash Incentives are available only to those who finance through Chrysler Financial."

So on this particular vehicle I'm looking at, the MSRP is $28,125 minus the $2000 Cash Allowance minus the $3171 Employee Discount, which brings the total to $22,954. However, I've already gotten approved for my own financing at $5.79 for 72 months. Now I read this little footnote.

Does this mean that in order to get the $2000 Cash Allowance, I have to finance through Chrysler? If so, will they match the APR that I've already gotten approved for?

Thanks.

toyotaken · July 2005

I believe that the footnote implies that there is additional bonus cash to finance through the Captive finance company. Keep in mind that you don't have to finance the whold amount, and more importantly, you can pay off the loan early... say in 30 days when you get your first billing statement... so you could take the bonus cash for financing through Chrysler financial, pay it off when you get your first statement, then still use your own financing.

Just a suggestion.

Ken

Kirstie_H · July 2005

OK, folks - we're not going to let the dealer profit discussion/argument spill over into this topic. This area is for talking about rebates, incentives, and APRs that are currently being offered. That's all, so let's stick to it.
Thanks.

marywilson · July 2005

Hi Car_man and Kirstie_h:

If a buyer gets a GM vehicle for GM Employee Discount Price, does this mean no special financing rate for this buyer?
GM is offering 2.9% financing for 60months.
Can I be greedy and have both?
My credit union is offering 4.9% for 60months.

Thanks

danf1 · July 2005

You can get both, but you cannot take any available rebates and still use the low financing.

jamesam · July 2005

I have been using the GM Buypower website to price the Caddy SRX (V-6, AWD). I did this in June and in July--for the same exact vehicle--and both times the web site was supposedly quoting me the "GM Employee Price." But starting both times with identical MSRPs of $46,525, I got two DIFFERENT employee prices. In June the employee price was $41,267 but in July ity was $38,267. WHAT'S UP WITH THAT?

umpa1 · July 2005

Hi--after two weeks of shopping around, the best price we could find on a Sienna LE with pacakge #3 was $27,990. Of course no rebates are available for July (I am in PA). Does this seem like a fair price to pay? Opinions pls...thanks!

umpa1 · July 2005

We are in the same boat. I have been told nothing will be available until at least August 1, and even then there may be no rebates avaialable.

96corolla · July 2005

27.9 for package 3 is a ripoff...bigtime. I can get package 5 for ~ 2K less then that. Check out fitzmall and darcars. I also think incentives will be back. Your dealers are BS-ing you. Be patient and shop around. I'm in PA too, but a drive MD is worth it for a couple grand. Worse case, you use their price to drive down the local dealers.

umpa1 · July 2005

I neglected to mention that it is for an AWD model. Just checked Fitzgerald Automall and their price for an identical model and package is 28,037, so perhaps the price isn't so bad after all...thanks for the tip, though, I had no idea about those other two places!

scott1256 · July 2005

cars sold to commercial users (hotels, etc) and on all demos.

http://www.kansascity.com/mld/kansascity/news/local/12087202.htm

This must be an all time high for rebates!!

ronsteve · July 2005

If the employee price went from $41267 in June to $38267 now, it sounds like they increased the rebates/incentives by $3000.

aabr · July 2005

For what it's worth, the GM site shows no such rebates on the SRX.

Rebates, Incentives, APRs - Questions & Comments

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