Rebates, Incentives, APRs - Questions & Comments

CarMan@Edmunds · August 2005

Greetings dnkg. I believe that for some reason Phoenix is in Toyota's Denver region. As you have heard, in its Denver region Toyota is providing $1,000 consumer cash or 3.9% financing on the 2005 Sequoia in August.

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CarMan@Edmunds · August 2005

Hello weez126. The Corolla has been selling so well that Toyota was able to scale back on its incentives on it. I don't believe that Toyota is currently providing any sort of customer cash on the 2005 Corolla in its Central Atlantic region. I have not seen Toyota's recent college grad program for your area lately, but the last time that I saw it, it provided a $400 allowance.

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CarMan@Edmunds · August 2005

Hi cosanostra. The only incentives that are currently available on the Audi A3 are a special financing program that provides 2.9% for up to 3 years and 4.9% for 4 to 5 years or a special lease program.

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nortsr1 · August 2005

I am not disputing your post #3170 where you state that to get the the Employee price. the formula is to. take dealer holdback (which in GM case is usually 4%) off of MSRP and then taking another 75.00 off? or adding $75.00??? Nevertheless, either way, I have taken several GM MSRP base prices, taken 4% of that, subtracted it from the invoice price and/or added and in each case also tried subtracting the $75.00 and I cannot come up with the GM Employee price that they post.
Example: (Pont Vibe FWD base) MSRP 17,690 Invoice $16,577 Employee price $16,137. Now 4% of the MSRP is $707.60. Subtract that from the Invoice of $16,577.00 and that comes to $15,869.40 plus $75.00 equals $15,944.40. If I subtract the $75.00 it equals $15,794.40. Eithet way it does not come out to the GM claimed Employee price of $16,577.00.
Will you please explain to me what I am doing wrong. I even called a dealer, went over the same figures and all he could say is"Well, that's their price.
To finalize...I am not saying that the GM Emplyee price is not a good deal, I just can't figure out the "FORMULA"??????
As I stated before, I tried this with several of their other models and still couldn't get their price with your 4% explanation.
I also want to state that when you go to their GM website that gives you the employee prices, the base Vibe that used as a model comes out to 15,137.00 due to the fact that they include the $1000.00 REBATE.There is also another $1000.00 Conquest incentive if you show ownership to a non GM vehicle.

kyfdx · August 2005

I think the GM Employee price is closer to 3% off of invoice.. Basically, the amount of the holdback... I'm also not sure it is 3% of the entire MSRP.. .maybe just 3% of the base price, or 3% of the base price+options.. (pre- destination charge).

regards,
kyfdx
(not the expert)

cashopper · August 2005

thanks for the helpful info, car man. re. sienna incentives, any word yet on aug / sept deals? re. honda, if we were to ask for a deal on leftover 2005 models, when would be a good time to do so with dealers?

CarMan@Edmunds · August 2005

Hi nortsr1. General Motors puts its employee pricing prices right on vehicles invoices, so dealers never actually have to calculate this figure themselves. The price of vehicles sold through this program is their invoice price, minus holdback (which is 3% of the total MSRP), minus any available cash incentives, plus a $75 fee. So let's take the Pontiac Vibe that you mentioned in your post as an example. Its dealer invoice price is $16,577, subtract 3% of its MSRP ($17,690) from that figure and we arrive at $16,046.30. Now we subtract the $1,000 consumer cash that is available on this model and add back the $75 fee to arrive at $15,121.30. Before the consumer cash is taken out the price would be $16,121.30. We may be off slightly because the prices that you provided me with probably include destination charges, but I believe that holdback is calculated on vehicles prices without holdback.

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CarMan@Edmunds · August 2005

You're welcome cashopper. Generally speaking, vehicles' incentives gradually increase as the model year progresses, but it is difficult to say what any manufacturers' September incentives will be like at this point. I can tell you about any vehicle's current August incentives though.

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nortsr1 · August 2005

explaining the formula for the GM Employee pricing. Yes, I had mistakenly used the dest. charge in my computations.

just_phil · August 2005

I noticed that too. I'm interested in either 2005 or 2006 V70R, could you please research the incentives? I'm getting conflicting information. Thanks!

cashopper · August 2005

ok, thanks. re your message, can you please tell me about august incentives in california for honda and toyota. many thanks.

newbe4lease · August 2005

I would like to trade in a 2002 Jeep Liberty Ltd. 4wd with only 22,000 miles in
excellent cond. with many extra's for a 2005 Hyundai Tucson. Now through 9/5/05
I can get a 36 mo. lease with $199. mo. payment, $1799 down, 0 security deposit,
12000 annual mileage that includes a HMFC $2000 rebate and suggested dealer
participation of $1101 towards the total cost of the vehicle. I wasn't planning on a
trade-in and owe $9800 on the Liberty, but what should I be paying on a lease with this great trade-in? I really need your help to know what to do. I want to reduce my payments and don't want to lose to much on the Liberty. Could the lease amount be reduced further with a trade? Please explain the pro's and con's mr. car man. Thank you!

CarMan@Edmunds · August 2005

You're welcome nortsr1. I'm glad that I was able to help you out.

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CarMan@Edmunds · August 2005

Hi just_phil. Volvo is currently providing $4,000 dealer cash on the 2005 V70 and $2,500 or a special lease on the 2005 V70.

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CarMan@Edmunds · August 2005

I would be happy to give you an idea of what Honda's and Toyota's August incentives are like in your area, cashopper. Which specific models are you interested in?

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CarMan@Edmunds · August 2005

Hi newbe4lease. This is a great question for the , "Lease Questions - Ask Here" #, 14 Dec 2000 10:45 am discussion that appears in this forum. Please post it there and I would be more than happy to answer it for you. See you over there.

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just_phil · August 2005

Did you mean special lease on the 2006 V70?

Thanks, now only if they could find the 2005 V70R with a manual :-(

96corolla · August 2005

I'm getting ready to buy an 05 Toyota Sienna. Will finance ~ 1/2 of the cost and need to begin looking for the best rate. I'll check the typical places - Eloan, capital one, etc. Does anybody know of any other places to check for rates, or any other great rates out their right now? What I've seen right now for 5 years new auto is ~5.35. Any info/advice would be appreciated. Thanks.

qbrozen · August 2005

if you go to bankrate.com you can compare rates from several places.

cashopper · August 2005

i'm interested in the ody exl, and the sienna le awd (and i would probably add on leather and moonroof aftermarket dealer installed, if you have any ideas about price for that, as well). thanks for your guidance!!

CarMan@Edmunds · August 2005

I sure can, lex_kolt. The only incentive that Volvo is currently offering on the 2005 S40 T5 is $2,750 dealer cash.

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CarMan@Edmunds · August 2005

Darn, I did the old 2005 - 2006 switcharoo again. Thanks just_phil. You are right, the latter info was for the 2006 model year V70.

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CarMan@Edmunds · August 2005

Hi 96corolla. Toyota is offering 3.9% financing for 5 years on the 2005 Sienna in most of its regions right now. If you let me know what state you are in, I would be happy to tell you exactly what incentives are available on this van in your area.

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CarMan@Edmunds · August 2005

Cashopper, in its Los Angeles region Toyota is currently providing 3.9% financing for up to 5 years or $1,000 customer cash or a special lease on the 2005 Sienna. Honda is not currently offering any sort of incentives on the 2005 Odyssey though.

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guitar · August 2005

Appreciate if somebody could tell me the August incentives for the following:

1) Toyota Camry LE 4 cyl Auto
2) Honda Accord LX 4 cyl Auto

I will be Los Angeles (near LAX).

Thank you.

kyfdx · August 2005

The Accord 4-cyl. sedans have a $750 incentive..

You should really check out the Honda Accord: Prices Paid board.. Some of the info is a little optimistic, but it seems they are really cutting deals.

guitar · August 2005

I have been following the price paid Thread for the Accord very closely. Thanks.

jhs70 · August 2005

Specifically on Titans..........anyone heard if there is one, and if so, the details (or rumors).

Thanks.

cashopper · August 2005

hi car man,

i'm trying to decide between the honda ody and the toy sienna, with the main sticking point being that toy has AWD. honda, as you know, does not have that option. how important is AWD (vs. FWD) -- does it really make an appreciable difference?

CarMan@Edmunds · August 2005

Hi guitar. In August, in its Los Angeles region Toyota is providing 1.9% financing for 3 years and 3.9% financing for 4 to 5 years or $1,000 customer cash or a special lease on the 2005 Camry. Right now, Honda is providing a special lease program or $750 dealer cash on Accord 4-cylinder sedans and $1,250 dealer cash on Accord V6 sedans and all Accord coupes.

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CarMan@Edmunds · August 2005

I've never heard the abbreviation "FTD" incentive before, jhs70. It is something like free flowers with the purchase or lease of a new vehicle

? I assume that it means factory-to-dealer incentives aka dealer cash. I don't believe that Nissan is providing any sort of dealer cash incentives on the 2005 Titan in August. It is providing 2.0% financing for 3 years and 3.0% for 4 to 5 years or $2,000 customer cash on 2005 Titan Crew Can and $2,500 on Titan King Cab models.

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CarMan@Edmunds · August 2005

Hey cashopper. This isn't exactly an incentive question, but I can answer it for you quickly. The importance of AWD depends upon what the climate is like where you live. I personally live in an area that gets a moderate amount of snow during the winter and always like to have at least one vehicle with AWD in my stable. Having said this, in most parts of the country you would be just fine with a van that had front wheel drive.

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dnkg · August 2005

Thanks anyway Car_Man. It turns out there are no August incentives for Sequoia in the Denver region and Toyota did increase the base MSRP by $250 (Edmunds has not picked up the price increase by the way). I may have to go to California to buy where there are still rebates and financing incentives.
DNK

ronsteve · August 2005

What kind of APR is American Honda getting on new Acura TSX purchases? Are they beating the likes of Capital One and e-loan? Trying to decide how heavily to pursue financing thru other sources ahead of a possible TSX purchase.

Thanx!

CarMan@Edmunds · August 2005

You're welcome DNK.

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CarMan@Edmunds · August 2005

Hi ronsteve. You're right, Honda is not currently providing any sort of special financing rates on the 2005 TSX. I do not know what American Honda Finance Corp.'s standard finance rates are like right now, but you better believe that there is a very good chance that the dealer that you purchase your new car from will mark them up to add additional back-end profit to your deal. In today's competitive automotive marketplace where consumers are increasingly aware of invoice prices and incentives, dealers rely heavily on the profit that they make from their F&I departments. It is in your best interest to go to a local bank, credit union, or even a bank that does business on-line and get pre-approved to finance this car prior to visiting dealers. Doing so will give you a good idea of what sort of interest rate to expect and will motivate the dealer that you get your car from to beat your pre-approved rate.

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pete5754 · August 2005

I would like to know what the better option is for a buyer. I am looking to purchase a 2005 Ford Escape. I can either take $2000 in Customer Cash or get financing at 1.9% APR for 48 months.

I also noticed that Mitsubishi is offering $1200 in customer cash which must be combined with the 0% APR (48 months), but the vehicle must be financed through the manufacturer's captive finance company. This sounds like a great deal. What is the catch?

gregjohnson · August 2005

I'm still researching, but I'm under the impression the Ford "Family" plan has no other "incentives" attached.

I'm shopping for my Mother's next Expedition, 05 or 06, which I'd like to buy this coming week. (No rush at all, current unit's solid)

I've seen posts implying the dealers would like to use FFP as firm price a concept I like but this particular implementation doesn't seem very equitable. Regardless, if that's the industry stance more power to them - I can wait until they change their minds.

Back on topic, what adjustments do I need to make to TMV for FFP?

-Greg

Thanks for re-answering this question - I know the answer is out there, I just can't find it.

P.P.S. I can use any dealer in Georgia or Florida conveniently - any recommendations?

jamesam · August 2005

Are there any incentives for the M35 ? Is it generally discounted or should I expect to pay the full MSRP ?

CarMan@Edmunds · August 2005

Hi pete5754. Whether the $2,000 cash incentive or 1.9% financing is better depends upon what sort of interest rate you would finance this car at if you decided to go with the cash. You can calculate approximately how much the special financing offer is saving you by going to a calculator, like this one: Edmunds.com Basic Loan Calculator, and calculating the difference in your total payments for a loan on this car at 1.9% versus one at whatever rate you would have to use if you opt not to finance at 1.9%. If the difference between the two is greater than $2,000 and you plan on keeping the car for the entire four year duration of your loan then you would be better off choosing the low rate.

There's no catch to Mitsubishi's special offer of cash plus a low finance rate. Mitsubishi has traditionally had a high level of incentives on its cars.

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CarMan@Edmunds · August 2005

Hi jamesam. I am not personally all that familiar with what the market is like for the 2006 Infiniti M35 in your area, but I doubt that you would have to pay full MSRP to get one. You may be able to get an idea of what sort of price you should pay for this car by stopping by the following discussion: "Infiniti M35/M45: Prices Paid & Buying Experience". Other than a special lease program Infiniti is not providing any sort of incentives on this model right now.

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mycatsam · August 2005

We looked at a Pontiac Vibe today.

It was base model, FWD, with automatic transmission and the power group value package. It did not have the monotone package. It is a two-tone.

The dealer quoted us a price of:

$19,390.00, then an employee discount of $1,773.85, which dropped the price down to $17,616.15.

Then he took off $1,000 for the cash rebate, $1,000 for the conquest rebate, and an additional $200 discount, to bring the price down to $15,416.15 (before tax and title fees).

I am wondering if this is a good deal.

Thanks for any help anyone can give us. It has been awhile since we bought a new car.

Kris

CarMan@Edmunds · August 2005

Hi Kris. Yes, this is a very good deal on the Pontiac Vibe that you are interested in. Not only are you taking advantage of the ability to purchase this car through GM's Employee Purchase Program this month and having any available cash incentives deducted from that price, but you are receiving an additional discount on top of that. Many dealers will not give consumers additional discounts on sales through this program. If you like the car, I do not personally see any reason not to go for it.

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steine13 · August 2005

Buy it. The two-tone is better, cuz the paint doesn't stick too well on the plastic cladding. Ask me how I know :-)
$15,4 for the auto is like $14,6 for the stick... that's cheaper than my '04 stick, similarly equipped, in the fall of '03. If you like the car, go for it.

-Mathias

kmcg · August 2005

Hi Car Man - Can you tell me the current incentives on the 2005 Volvo XC70 base model, XC90 base AWD model and VW Touareg V6? Thanks so much - your advice is a godsend!
Kathy

CarMan@Edmunds · August 2005

Hi Kathy. Volvo is currently providing $5,000 dealer cash on the 2005 Volvo XC70 base model and $2,575 dealer cash on the 2005 XC90 base AWD. On the 2005 Touareg V6 Volkswagen is currently providing 2.9% financing for up to 4 years and 3.9% for 5 years plus a $1,250 incentive for financing through VW Credit or $3,000 dealer cash or a special lease.

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kmcg · August 2005

Thanks so much!

CarMan@Edmunds · August 2005

You're very welcome Kathy.

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hunt4car · August 2005

Hi,

I had a question about cash back incentives vs. lower APR. On the base of a $21,000 Toyota Camry do you think it is better to go for $700 cash back or 1.9% APR (vs the norm of 5%)? Thanks.

hunt4car

kyfdx · August 2005

Assuming you financed the total amount..

$20,300 @ 5% for 60 months is $383/mo.

$21.000 @1.9% for 60 months is $367/mo..

The break even point, if you had to sell before 60 months, is somewhere around 16-17 months... As long as you kept the car that long, you'd come out ahead taking the low interest, and foregoing the rebate..

Assuming that the 1.9% is available for 60 months....

regards,
kyfdx

Rebates, Incentives, APRs - Questions & Comments

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