Rebates, Incentives, APRs - Questions & Comments

carbonni · May 2006

According to Edmunds, GM offers for many vehicles a $750
Bonus Cash that "is only available to qualified educational institutes or professional driving schools." What do they mean by "qualified educational institutes" and who can actually take advantage of this offer?

mantrasia · May 2006

hi car_man, wondering if you had some info on the 06 dodge durango. looks like they're having some trouble moving them as they just rolled out a $5000 cash incentive. i'm thinking about biting and getting one, but wanted to see if DC was giving the dealers some other dealer incentive to move them other than the normal holdback. hoping to capitalize on the slowness of these big truck sales to get a great deal. on a related note, i was also considering the 07 chevy tahoe/gmc yukon, but it seems GM isnt offering the big incentive like dodge is. any ideas on why or if you think they'll end up going as deep as they are on the durango? thanks!

gayjeepboy · May 2006

Hi car_man. Just a reminder if you have any information on the Jeep Wrangler incentives, especially any factory to dealer cash on the 05's. Thanks as always

CarMan@Edmunds · May 2006

Hi mantrasia. In addition to the normal $5,000 customer cash incentive and dealer holdback, Dodge dealers are getting additional dealer cash on the 2006 Durango. Every dealer will get at least $500 and as much as $1,000 additional dealer cash per unit. GM's redesigned full-size SUVs have been selling very well and do not have anywhere near the level of incentives that DaimlerChrysler is currently providing on the Dodge Durango. Having said this, the GM trucks are better products than the Durango so there's a reason why their incentives are lower.

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CarMan@Edmunds · May 2006

Thanks for the reminder. DaimlerChrysler is still providing $2,000 dealer cash on 2005 Jeep Wrangler models, but like I mentioned with the Dodge Durango in the previous post DaimlerChrysler dealers have the ability to earn $500 to $1,000 additional dealer cash on every vehicle sold this month. You should be able to negotiate a heck of a deal on any 2005 Wranglers that are still out there.

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gayjeepboy · May 2006

Car_man

Thanks again for your help.

Tommy

gayjeepboy · May 2006

Hi Car_man

Just wanted you to know I purchased a brand new 05 Jeep Wrangler X for $8000 of MSRP. It toook a lot of searching and I traveled a bit to find it but the savings were worth the quest. My local dealers were willing to go only $4000 to $5000 off MSRP and they still have a lot of 05 inventory on their lots. I suspect they will be incurring some large flooring costs on these units. I feel the 05 was a better purchase since they still have the 7 year/70 K mile warranty. Thanks for your help and encouragement on this process- I reallly appreciate it
Tommy

CarMan@Edmunds · May 2006

You're very welcome, Tommy.

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CarMan@Edmunds · May 2006

Congratulations on your new Jeep, Tommy. All of the time that you put in paid off. Thanks for taking the time to let us all know how everything turned out. Enjoy your new ride.

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mikies · May 2006

:confuse:
Hi,

I put a deposit on a car last month, nothing fancy of a car, just dealer did not have what I wanted right on the lot, but had like 15 of that model on the lot. The dealer is getting the car for me. The rebate from the manufacturer was X at the time. The car is still not here. The funny thing is that the rebate for the car is now Y which is larger than when I placed the order for the car. How do I get rebate of value Y included in my car purchase price? I have the signed order for the car, listing X for rebate. If dealer and I can't agree on swapping rebate X for rebate Y, will I have issues getting my deposit back?

Thank you!

rmlinn · May 2006

How does manufacturer cash to dealer or customer work on a lease? If for example there is $1000 customer cash do I make my best deal and then subtract another $1000 before calculating the lease? Or do I make the deal and then get a check from the manufacturere even though I don't own the car? How is the cash paid? I'm looking at a Highlander and there is $2000 customer cash this month I believe, and the money factor is low so there are the makings of a good lease. (If you have teh MF and residual on a Highlander for 36 months / 12k miles that would be great too!) Thanks for your help.

rmlinn · May 2006

Sorry, according to Edmunds there is $1000 cash to customer on Highlander this month. I am in Southeast Florida, your earlier reply indicated that the incentives vary by region. How do I find out the differences (or have I just done so)?

raybear · May 2006

It depends on whether the dealer has reported the car as sold to the manufacturer. I had a customer order a car in December and when it arrived the rebate was better so we passed it along to him, but he waited 3 months for production.

clriufs3 · May 2006

Hi,

We are currently in the process of looking at purchasing a BMW 3 sedan
or a Mercedes C sedan. The Mercedes C has either low APR or marketing
support, while the BMW 3 doesn't have any.

We have no clue as to whether historically BMW offers any incentive or
current Mercedes incentive is almost historically best. Since it is
nearing the rollout of the 2007 model year for both brands, is it
reasonable to expect some better incentive programs down the road?
We would appreciate any comment.

Also, during our testdrives, when I inquired about the lowest price
they would accept, BMW salespeople mentioned in passing that they
could sell me the car at $200-300 over dealer cost. I presume dealer
cost refers to invoice. As BMW doesn't offer any marketing support,
and there is no hold back, it looks a bit too low a profit for them
to make on an expensive car.

Thanks.

dino001 · May 2006

They have numerous ways to make extra profit while selling to you "200 over invoice":
1. Dealer's fees - almost pure profit, in FL there is no state-mandated cap, so $300-800 is "customary" (not reasonable, but customary).
2. Financing - they will try very hard to talk you into a lease. Believe it or not in BMW/Benz case, it actually often makes sense, as long as your mileage is in line (low factors allow for lower financing costs than those from loans). They make tons on leasing, starting from marking up set-up fees to marking up the money factor. There is a lot of room to obscure their cost from you so you pay more than "have to". Suddenly $200 over cost may quickly add up to four digits.
3. Add-ons. Don't have to explain that, do I?
4. Your trade - depending what you have and how badly you want that bimmer, you may end up getting less than it is really worth, even as a trade.
5. There is some "post-sale" money available to them in form of bonuses, which may or may not come. However, keeping it in their mind, it allows them occasionally to make some deals they would normally not accept, just to keep the ball rolling.

My guess they see you are serious and not easily impressionable, your mind seems to be set on the competition, so they throw $200 "above cost" number just to get you back. It is just a small part of a big picture, so before you get really excited, it is always worth to check all the details. It still may be a good (or great) offer, but believing that one just made $200 on that $40 grand machine is like believing in Santa Claus. :P

mikies · May 2006

Thank you sir for your response

olliegator · May 2006

Car_man,

I'm thinking about purchasing a 2006 Honda Accord LX Special Edition. Accords have "Special Pricing" going on now, so I was wondering what I should be looking for in a deal. I've been offered $19,632 on this car...just want to make sure that I've got all the bullets that I can have.

TIA, OllieGator

clriufs3 · May 2006

Hi Dino001,

Thanks for the comment. Yes, I wouldn't imagine $200 profit will help much in their sparkling new building either. :-)

Out of the 5 venues of profits for dealer, my purchase will only make two feasible - dealer fees and post-sale bonus. I won't have a trade-in, I won't have dealer financing, and I won't accept add-ons (well, I hope). But since I didn't go that in-depth about the nature of my intended transaction with the salespeople, I was probably quoted the most enticing offer with some implied profits elsewhere as you mentioned.

Thanks.

clriufs3

dino001 · May 2006

YOu know, my philosophy is it never hurts to ask, but I never keep my hopes to high if the deal seems too good to be true. Stuff does happen, of course - but it is like in Vegas - it's always a guy next to you getting a jackpot

dudette3 · May 2006

What does Holdback and holdover allowance mean? Thank you for the information!

CarMan@Edmunds · May 2006

Hi rmlinn. Sometimes customer cash is compatible with manufacturers' special lease programs, but most often it is not. Most automakers publish separate lease cash allowances for vehicles that are leased through their captive finance companies. If the vehicle that you are interested in is eligible for a customer cash incentive, make sure to take it into account when negotiating its selling price. Usually customers just sign customer cash over to dealers rather than get a check sent to them from the manufacturer. Toyota's incentives, including their compatibility rules, vary depending upon which one of its twelve or so regions one is in. In most of Toyota's regions, other than the Southeast, its customer cash offers are not compatible with its special lease programs.

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CarMan@Edmunds · May 2006

Hi again, rmlinn. I see that you are in Toyota's Southeast region. In your area, I believe that Toyota is currently providing $1,000 customer cash on 2006 Highlander models that are equipped with 4-cylinder engines and $2,000 customer cash on Highlanders with V6 engines. This may have been the cause of your confusion about the exact incentive that is available on the truck that you are considering leasing. As I mentioned in my previous post, unlike in other areas Toyota's customer cash incentives are usually compatible with its special lease program in the Southeast region. Make sure to take this cash into account when negotiating the capitalized cost of the truck that you want.

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CarMan@Edmunds · May 2006

Hello clriufs3. It is difficult to predict exactly what manufacturers will do with their future incentive programs. The only sort of support that BMW is currently providing on the 3-Series is a special lease program. Not only is this the only support on this model, but its lease program isn't as attractive as the one that BMW was offering on it in March and April. If I was in the market for this model and was not in a hurry to get a new vehicle, I personally might be inclined to wait to see if any better deals are offered on it. On the other hand, Mercedes' offers on the 2006 C-Class actually are not that bad right now. I would be less inclined to wait if I was in the market for one.

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CarMan@Edmunds · May 2006

Hi OllieGator. The "special pricing" that you have seen advertised on the Accord probably refers to the $750 dealer cash that Honda is currently providing on 2006 Accord Sedans and $1,000 that it has on '06 Accord Coupes. Accords commonly get sold for right around dealer invoice. So, look up the invoice price of the exact car that you want by visiting the following section of this site: Edmunds.com - New Vehicle Pricing. Add a couple hundred dollars and subtract the dealer cash to get the approximate price that you should pay. For additional information on how much you should pay for the Accord that you want, make sure to stop by the following discussion: "Honda Accord: Prices Paid & Buying Experience".

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CarMan@Edmunds · May 2006

Hi dudette3. Edmunds.com has a detailed article about dealer holdback right here on this site. Click on the following link to check it out: Edmunds.com Dealer Holdback Article. The short version is that dealer holdback is the percentage of a vehicle's price that most manufacturers kick back to dealers to help them pay certain costs that are associated with retailing a new vehicle, like their floorplan aka interest expense.

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rknapp5 · May 2006

What leftover dealer cash was available on the 2005 g6?

CarMan@Edmunds · May 2006

Hello rknapp5. Early this year, General Motors gave Pontiac dealers $2,250 dealer cash for any remaining 2005 G6 models that they had left in inventory.

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pburiak · May 2006

Hello
I'm considering the purchase of a 2006 Impala, and I'd appreciate it if anyone could tell me if there are any additional incentives other than the $500 rebate indicated by Chevy if the car is financed with GMAC. I went car shopping back in late February and there was an additional $500 "down payment assistance" if GMAC was used. Please advise if that specific program has been continued, cancelled, or enhanced. I would most likely be doing a SmartBuy, not a lease or retail financing.
If location is a factor, I live in Pennsylvania. In addition, I am not a veteran or recent college grad.
Thanks for any assistance in advance.

merckx · May 2006

I'm considering buying a new 2006 Cadillac STS or DTS. Is there any kind of incentive on these cars right now?

CarMan@Edmunds · May 2006

Greetings pburiak. General Motors is currently offering 2.9% to 6.9% financing or $500 customer cash or a special lease / balloon note program on the 2006 Chevrolet Impala. Consumers who trade in a 1999 model year or newer vehicle on a new '06 Impala will receive an additional $500 bonus. GM is not currently providing any additional bonus incentive for Impalas that are financed through GMAC.

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CarMan@Edmunds · May 2006

Hello merckx. General Motors is currently providing 2.9% to 4.9% financing plus $5,000 dealer cash on the 2006 Cadillac STS. On the 2006 DTS is is providing 6.25% financing plus $2,000 dealer cash. Both of these cars have special lease programs available on them as well.

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clriufs3 · May 2006

Hi Car_man,

Thanks a lot for the reply.

We test drove the BMW 325i and Mercedes C230. The C230 doesn't feel as sturdy as 325i. And we have pretty much narrowed down our choice to the 325i.

We are not in a particular hurry to get a car, we will take your advice and see whether better purchase deals may come up in the next couple of months. If no incentive comes, we can always order a 2007 325i when it becomes available.

Thanks.

clriufs3

merckx · May 2006

5000 cash!!?? Can I resonably expect my retail dealer to turn this over to me? Also,would normal dealer discounting apply? Suggesting ABOUT $7,000 off the $42,000 list price(I'm talking base six cylinder STS here)
This is very good news,as I was just shopping for the car yesterday and was wondering about a price to offer...

dino001 · May 2006

Can I resonably expect my retail dealer to turn this over to me

Guess why they have such high cash back offer. Not becasue they sell so well LOL.

Large cash incentives, regardless if dealer's or customer's, are sign of either very weak market, grossly overpiced product, or "aging" model to be replaced. STS is quite new, so you figure the rest.

rroyce10 · May 2006

.. **We test drove the BMW 325i and Mercedes C230. ....**

The "C" class has had it's problems .. check any Benz store on a Monday .... find another product ...

Terry.

maisiegay · May 2006

2005 Lincoln Town Car Signature. On Auto trader 20,000mls from Dealer at $233031 + TT&L. Is this Ok or should I be looking for a lower price? Also taxes title etc. If I buy in another state and register it in my state do I have to pay both pipers or can I pay just one and which one? Some neighbouring states sales tax is less than ours. Can I buy the car there and pay less taxes??Thanks

rayainsw · May 2006

RE: TMV here at Edmunds:

Caddy STS V8 Marketing Support May 2006

$5000 Cash to Dealer start: 05/12/2006 end: 07/05/2006

. . . . . . . . . . . . . . . . . . . . .MSRP . . . Invoice . . .TMV

1SF = $Total with Options . $58,980 . $54,065 . $51,423

1SG = $ . . . . . . . . . . . . . . . $61,030 . $55,767 . $53,125

All Data from Edmunds 18 May 2006

1SF = $2,642 below Invoice

1SG = $2,642 below Invoice

Question is: Does this TMV data include \ assume the "new" $5K cash to dealers?

Or is this based on data collected on what buyers have actually been paying prior?

Or is it adjusted when these new programs are announced?

Thanks!
- Ray
Curious . . .

rroyce10 · May 2006

..... 20k is alot of miles for an 05 .. even if the "in service date" was August 04 .... what state are you in...?

Terry.

maisiegay · May 2006

AL is the state. I check today car is a program car. I determined you pay the taxes in the area you live and will register the car.maisiegay

rroyce10 · May 2006

... Taxes are paid in the state and county you reside in ....

A "program car" is a vehicle that has been used by a Ford/Lincoln rep .... you probably mean it's been in rental service ..

I'm sure you can find a TC in the market with a lot less miles and for about the same $$ ..

Terry.

maisiegay · May 2006

Thanks for the advice Terry I am on the look out today. maisiegay

CarMan@Edmunds · May 2006

You're very welcome, clriufs3. The BMW 3-Series is an excellent car. You've made a wise choice.

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CarMan@Edmunds · May 2006

The only reason to put such a high incentive on a vehicle, is that it isn't selling as well as the manufacturer would like it to. As a result, if you are in an area where there is a decent level of competition, I doubt that you will have much trouble getting the dealer that you are working with to give you all of the dealer cash that is available on this model. This incentive is completely paid for by GM and will have no impact upon your ability to negotiate an additional dealer discount as well. Good luck in your quest for a new vehicle and let me know if you have any other questions.

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merckx · May 2006

Edmunds has the TMV of a base STS six cylinder with no options(listing for $41,700) at $35,927...incentives are listed on the next line...Does this imply that i can take off a further $5,000 dealer incentive?..That would make the price just under $31,000...Is this what I should offer the Cadillac dealer?

CarMan@Edmunds · May 2006

Hi merckx. The True Market Value price that is listed on this site for the Cadillac STS is below dealer invoice. As a result, I think that it is safe to assume that it is taking the dealer cash that you mentioned into account. If you are in an area where there is a decent level of competition, I bet that you could get an STS for $4,000 under dealer invoice right now (this is really around $1,000 when the $5,000 dealer cash is taken into account).

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ksoles · May 2006

Car_Man...can you please post numbers for the current GMAC lease residuals and money factors being offered on the 2006 Envoy Denali right now? THANK YOU!

nortsr1 · May 2006

CarMan...Would you happen to recollect what was the largest rebate

Chrysler ever offered on the PT Cruiser over the past couple of years?? :confuse:

CarMan@Edmunds · May 2006

Hi ksoles. This question is more appropriate for the "Prices Paid: Buying & Leasing Experiences" forum. I see that you already posted it in the GMC Envoy Lease Questions discussion that appears in that area. Please check there for my response. Thanks.

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CarMan@Edmunds · May 2006

That's an interesting question, nortsr1. The highest customer cash incentive that I remember DaimlerChrysler offering on the Chrysler PT Cruiser is $2,500. Its current customer cash offer on this model is $1,500. I suspect that it will eventually increase its cash support on this model, but it might not happen until much later in the model year.

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nortsr1 · May 2006

CarMan,
Thanks for the fast reply. For some reason, when I called FitzMall in Florida (Chrysler dealership in Clearwater), they are offering $2000.00 "BELOW"

invoice on the PT Cruisers plus their normal $299.00 dealer fee :mad: . I have a feeling they might be getting an "additional" $500.00 "hidden incentive" (mfg. to dealer)to offer such a rock bottom price, (as all the sites show only a $1500.00 PT rebate).
From what I can see on their website...they sell all their vehicles at "below dealer invoice"

and still subtract the rebate

.

Rebates, Incentives, APRs - Questions & Comments

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