Rebates, Incentives, APRs - Questions & Comments

CarMan@Edmunds · May 2006

DaimlerChrysler is providing dealer cash on all of its 2006 models right now, nortsr1. I forgot to mention it in my previous post because you didn't really ask about the PT Cruiser's current incentives, but was racking my brain trying to remember the highest rebate that has ever been offered on it. You're right Chrysler, Dodge, and Jeep dealers are getting an additional $500 dealer cash on every unit that they sell in May. The price that you were quoted, essentially $300 over dealer invoice after incentives are factored in, is very attractive.

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lucho1 · May 2006

Hi,

I am in the market for the BMW 325i. Dealers are currently offering the 2006 model and the best deal I got so far is $500 over invoice. The problem is that the dealer does not have the exact match that I want (for instance, I really want fold down seats and graphite exterior).

The dealer told me I could order the car with exactly the features and colors I want. The dealer still offers that option at the same price.

My doubt is that the car will take 2 months to arrive if ordered and in 2 months the 2007 model will arrive. The dealer can't say whether the 2007 models he will receive will have the match I am looking for and did not tell if he would be able to offer the 2007 at the same price, but most likely not.

I am not in a hurry to buy, but was wondering if I am leaving a good deal on the table if I wait for the 2007 BMW 325i. There is also the factor that the 2006 I could buy now would be a 1-year old "new" car by the time the 2007 is out in 2 months, so paying that extra for the 2007 might not be that bad either when thinking about resell value.

Any advice?

Thanks,
lucho1

CarMan@Edmunds · June 2006

Hello lucho1. $500 over dealer invoice is a good deal for this car. It is difficult for me to say what sort of deal this dealer will be willing to cut you on a 2007 3-Series. They might be a little reluctant to offer you the same $500 over invoice when the '07's first arrive, but I am sure that they will eventually be willing to cut the same deal on them.

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rayainsw · June 2006

One other possible consideration:
The 325 Coupe will become 328 in 2007.
( And the 330 will become a 335. )
The Sedan ** MAY ** also receive these motors in the 2007 model year. Though BMW has not yet officially announced this . .

http://www.bmwusa.com/vehicles/futurevehicles/new3coupe/default

Enjoy!
- Ray
Hoping a 335 Sedan will also be available  by next Spring . .

atlvibe · June 2006

3 weeks ago, I purchased two new Ford products. An Escape Hybrid and a F-250 crew 4x4. Now, Ford has come with better incentives. The Hybrid has an extra $1000.00 gas card. The same holds true for the F-250 an extra $1000.00 gas card plus 0 % financing. If I had known Ford was going to offer these incentives, I would have held off my purchase. The local dealer tells me that it's done and they can offer me nothing. When I call the Ford customer care line they refer me back to my selling dealer. I fell betrayed by Ford. Yes, it's sour grapes on my part. Is there anyway I can get Ford to offer my some type of compensation? This is the 3rd new Ford purchase I've made in 12 months. I feel like I've paid too much now. I feel like a fool. How can I get Ford to see it my way or am I stuck?

nortsr1 · June 2006

Believe me, it is not the dealers fault. They don't even know what the new forthcoming incentives are going to be! Let's face it, if EVERYONE knew that there was going to be MORE REBATES or INCENTIVES three weeks before hand, NO ONE would have bought a vehicle in MAY. You just missed the boat and that's the way it is!! No one cheated you. When you purchased your vehicles (at that time) you were a satisfied purchaser.
Take your lumps and just live with it!!!

steine13 · June 2006

Never ever ever look back at rebates after buying a car. Ya can't predict it, and when you drive away, it's game over. The dealer can't help you 'cuz he isn't going to get it from the manufacturer; not on a past purchase.

If it makes you feel any better, the first new car I bought I offered $10,500 and they accepted... I was happy... then they don't sell any more of the few they had left... a month goes by... and they advertise them in the paper for $9,995.

Ya win some ya lose some. Plus, my $10,5 was a good deal, no matter what happened later, so I was happy.

-Mathias

dino001 · June 2006

If I had known Ford was going to offer these incentives, I would have held off my purchase

What if they didn't or they pulled offers completely cause the cars started selling like hotcakes? Come on ... Betrayed? :sick:

How about them (Ford) making no profit on the vehicles? Aren't they betrayed by their customers who dared to take all incentives and expect more? Of course not.

They put a product out there - some people found it attractive right away and bought it for X. Ford found that was not enough and if the pace continued they would have cut the production or worse. So they lowered price to X-Y. It was enough to attract more people, but apparently not enough again. So the price goes to X-Y-Z. Perhaps this time will be enough, but who knows... As much it is not customer's duty to buy anything they find unappealing or too expensive, the manufacturer is not bind by any code or duty to sell it for certain price. It's a marketplace - things sell for whatever they sell at the moment and it takes time for both sides to determine how much it should be.

Betrayed?? :surprise: :surprise:

CarMan@Edmunds · June 2006

Hi atlvibe. I certainly understand your frustration. Unfortunately, I am sorry to say that you are probably out of luck. Manufacturers do not provide any sort of compensation to consumers who purchased their vehicles right before an increase in incentives. Given the fact that this money comes directly from Ford and has nothing to do with your dealer, they will not be able to do anything for you either.

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balich · June 2006

I notice GM increased incentives from 500 to 1500 in all regions except NORTHEAST region . guess what .. i live in NE region .. In all other regions except NE .. the rebate is 1500 ,, in NE its 500 ... What are the chances NE region rebate will follow rest of country ?

It hard to purchase knowing rest of country saving extra grand right off the bat .. thoughts ?

My feeling GM should be consistant across whole
country. I never seen where one region is less than rest of country.

I live in MASS

dino001 · June 2006

If for some reason (say the sales picked up the steam) the manufacturer reduced incentives, would YOU offer them money back. You obviously bought it for too little and they may feel really hurt by that

dino001 · June 2006

My feeling GM should be consistant across whole
country.

Why? Because you say so? What if they offered larger incentives in NE - would you protest then? They offer as little as they think s necessary to meet their sale goals - if NE is a region with better sales, there is no reason to give up this money. If sales go south they will surely change their strategy soon enough.

junglegeorge · June 2006

Anyone know if Chevy has extended the $1500 Purchase to Purchase incentive and the 3.9% loan rate, that were scheduled to expire on 5/31/06 ? I have a 2007 Tahoe LTZ being built; I should be available by mid July. When I placed the order in April, these incentives were active, GM had some curtailment issues, production was delayed, and I am tiring to find out what has changed in the incentive world without tipping my hand to the dealer.
Is there other incentives I have missed.
George

qbrozen · June 2006

how far would you have to go to get that extra $1k? certainly seems worth it to travel a little for that kind of money, if you are really interested.

dino001 · June 2006

Many rebates have an actual customer residency requirement. Don't know about those, just have noticed some fine print here and there.

robr2 · June 2006

That's correct. If you don't meet the residency requirements, you don't get the incentive.

CarMan@Edmunds · June 2006

Hi George. If you are talking about the trade-in allowance that General Motors was providing on the 2007 Chevrolet Tahoe, yes it is still available to consumers who trade in a 1999 model year or newer vehicle. The only other incentives that are available on this truck right now are a special lease program, dealer cash on models that are equipped with cloth seats, and a small regional test program that caps the price of gasoline.

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CarMan@Edmunds · June 2006

Dino001 and robr2 are correct. Consumers need to be residents of a specific region to qualify for its incentives.

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junglegeorge · June 2006

Thanks for the info, made a great contact in Chevy customer service yesterday, this gentleman indicated that the purchase-to-purchase incentive and the 3.9% financing for 36 mo were both extended until 7/5/06. He also indicated that the Gas cap incentive was a trial and that if it worked out it MAY be extended to other areas. Although he did not save me any dollars, this guy was great! He was able to explain why as a loyal GM customer, I was not offered a customer loyalty discount like so many other readers were (see earlier postings). Apparently, GM decided to exclude all customers who also utilized the GM credit card and accrued points towards future purchases. My LTZ is not expected to deliver until the middle of July, so if you hear of any changes in the incentive world, I sure would like to hear about them. My dealer is willing to complete the Deal on paper as soon as he has the VIN, so it is a gamble, do I take the June incentives, or do I wait to see what July brings?

balich · June 2006

They just increased incentive to $2000 in all regions except Northeast .. still just $500 .. GM can pound sand!

I *was* interested in purchasing a Chevy Impala .. went to see what the incentives where and noticed

that it is *only* $500 in Northeast - *but* $2000 in *every* other region of the US .. I find this unacceptable.

How do you expect people in

NorthEast to purchase a vehicle when folks in ALL other parts of country can get

an extra $1500 off - right off the bat.

I will now focus my purchase on a Toyota Camry unless GM

increases the incentive in northeast to match rest of country. This is basically a slap in face for folks living in North East. GM should be ashamed to ethically discriminate against folks in NE.

british_rover · June 2006

That is just stupid.

The resaon the incentives are less in the northeast is because the inventory in the northeast is lower then the rest of the country.

The cars are selling well in the northeast and not so well in the rest of the country.

dino001 · June 2006

I wouldn't put it as dramatically, but yes it looks a bit strange to have such a disparity. I think it is a mistake. Wonder why that is.

It is funny how people grow accustomed to some things to the point they feel entitled and get angry when it's not there. Manufacturer/seller is not to provide us with incentives, but to sell the stuff. If it sells for whatever the price is, no reason to change the price. Nothing to do with discrimination.

british_rover · June 2006

That is why I love selling a vehicle that rarely if ever has incentives attached to it.

The only vehicle that even gets incentives from Rover is the LR3 and even then it is usually just in the form of subvened leases. Sometimes at the end of the model year they will throw a few thousand in trunk money at the left overs but that is it.

steine13 · June 2006

Well, I wouldn't buy it either under those conditions.. you can bet your bippy that the resale value accurately reflects those rebates... puts you in a buy high -- sell low scenario from the start.

Of course, buying domestics new is hard to justify economicially.... the Vibe is my favorite, but it won't suit everyone.

Here's where Mr. Subliminal comes in handy:
GM Card... GM Card... GM Card...

-Mathias

CarMan@Edmunds · June 2006

You're very welcome junglegeorge. It is difficult to predict what General Motors' July incentives will be like on the '07 Tahoe. Generally speaking, vehicles' incentives gradually increase as the model year progresses. However, there is no guarantee that GM will extend the $1,500 trade-in allowance or replace it with an equivalent offer.

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tahoedave · June 2006

Car_Man - I live in MN and have been looking at '07 Tahoes since January waiting for the prices to drop or GM to go back to some form of incentive. With interest rates rising, I'd be happy if GM matched Ford's 0% financing along with the $1,000 gas card they are already offering here in MN. In light of GM's repeatedly-expressed desire to move away from incentives, how likely do you think it will be that they will at least match Ford's financing offer. I'm looking to purchase by the end of July. Thanks.

CarMan@Edmunds · June 2006

Hi tahoedave. I would not be surprised if General Motors decided to match Ford's gas card promotion. GM is already test marketing a promotion that gaps gas prices at $1.99 on a select group of models including the '07 Tahoe in a few markets. I personally highly doubt that GM will come out with 0% financing for 5 years on this truck like Ford is currently offering on a number of its models. This is a very expensive promotion. Not only has GM expressed a desire to cut back on incentives, but the '07 Tahoe is still a relatively new model. Of course, no one knows for certain exactly what a manufacturer will do with its future incentives.

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cwh0375 · June 2006

Car man,
I am looking at an 06 extended cab z71 in atlanta. the current incentives end on 7/5. (3,500). any ideas if they will continue for the 06 model. I am looking to buy in september. also i get the gms pricing as well. any thoughts. thanks

chris :confuse:

CarMan@Edmunds · June 2006

Hi Chris. Though you never said so, I take it that you are interested in a chevrolet Silverado. You;re right, GM's current incentives on it are scheduled to run through July 5th. While it is difficult to predict exactly what manufacturers will do with vehicles' future incentives, I highly doubt that you have to worry about GM's incentives on the '06 Silverado getting worse. Not only do vehicles' incentives generally increase as the model year progresses, but dealers are going to be anxious to unload their remaining 2006 Silverados to make room for the redesigned 2007 model. The bottom line is I don't know exactly what GM's July incentives on this truck will be like, but I suspect that they will be at least as generous as its current offers on it.

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vanshopper · June 2006

We're debating about whether to buy a Toyota Sienna or Honda Odyssey this month or hold out for better deals in the coming months. Toyota is offering $1000 cash back on Sienna, and a local Honda dealer has told us that they have "unadvertised incentives" to stay competitive whenever Sienna has an incentive. Does anyone have any advice? We really need to find the best possible deal. Does pricing on Toyotas and Hondas tend to improve as the model year end approaches? Thanks!!

raybear · June 2006

"Unadvertised incentives" means they have dealer cash instead of a rebate. Prices on any car line tend to improve until inventories shrink, then there is usually a slight upswing.

nortsr1 · June 2006

Employee discount pricing and a 30 day money back garuntee. I read about this possibility over at the Detroit Auto News site. Supposedly will be announced sometime next week.
Kirstie h and tidester...have you heard anything.
A follow-up said that GM would probably announce 0% financing for 60 months!!

balich · June 2006

Does anybody fully understand how a GM GMS voucher
works ... it claims to be better than employee pricing ?

Does one have to pay dealer prep/advertising fees/doc fees - you know dealer markup with GMS pricing ?

Thanks!

nortsr1 · June 2006

As far as I know, GMS is NOT lower than emplyee pricing. I had the same once and the dealer tried to charge me a 499.00 "dealeer fee" which I said he was not allowed to do and he stated that the GMS price does not waive any other fees. Needless to say, as I got up to leave, he eliminated on the dealer fee. I believe GMS is about 1% under invoice.
I am sure one of the two moderators will give a more informative answer.If you have read my post#3735, you might want to hod off until after July 5th and see what new incentives will be offered. Who knows, maybe GM will match Chrysler's offer.

michaellno · June 2006

I just bought my third Saturn using GMS pricing a couple of weeks ago.

The standard dealer 'processing' fee of $489.50 was reduced to $75 because of the GMS pricing.

Kirstie_H · June 2006

A reporter aims to talk with any consumer who plans to buy a new vehicle later this summer when major incentive deals are likely to be announced. Please send your daytime contact info and a few words about your expectations to jfallon@edmunds.com no later than Wednesday, June 28, 2006.

cccompson · June 2006

Stopped at a GM store tonight to see if I could combine their recently announced zero percent financing with a "Certificate Extraordinaire" ($500-$1500 off depending on model), which I received in April (good until July 5).

While GM took the time and trouble to send them giant banners proclaiming a "72 hour sale" (which actually lasts about 200 hours), they couldn't answer my simple question.
They said they'll call GM tomorrow and let me know.

raleighblazer2 · June 2006

Pardon me for my ignorance. What is a GMS voucher? What is a Certificate Extraordinaire? And how do I get one? I am looking at a 2006 Avalanche in the southeast and need all the help I can get.

Thank you,

T

qtpieye182 · June 2006

I spent several hours and made numerous visits to the dealership working a deal for a 2006 Eclipse. When the deal was complete and it came to financing,I was told that she could purchase the vehicle at a 3.9% interest rate OAC. Since I have always had A paper, Tier 1 credit, I agreed and was told it was not a problem

On June 26, 2006 negotiations were complete and a contract was signed. The contract agreement was for a 3.9% financing.

On June 27, 2006 I went to the dealership to pick up the owners manual and additional key (not available at the time of the transaction). I was approached by an employee by the name of Denny who stated that there was no way she could get the 3.9% financing and I quote, God couldnt even get 3.9% financing. Interesting statement since I had researched Mitsubishis current financing offer of 3.9% for 72 months ending June 30th

He then attempts to explain what appears to be an internal disagreement about the deal, and is now asking for an additional $1,700 or the deal is off.

Can they do this?? In addtion he said he was going to report the car stolen if I didn't return it or come resign a contract? What are my options? :confuse:

qtpieye182 · June 2006

I spent several hours and made numerous visits to the dealership working a deal for a 2006 Eclipse. When the deal was complete and it came to financing,I was told that she could purchase the vehicle at a 3.9% interest rate OAC. Since I have always had A paper, Tier 1 credit, I agreed and was told it was not a problem

On June 26, 2006 negotiations were complete and a contract was signed. The contract agreement was for a 3.9% financing.

On June 27, 2006 I went to the dealership to pick up the owners manual and additional key (not available at the time of the transaction). I was approached by an employee by the name of Denny who stated that there was no way she could get the 3.9% financing and I quote, God couldnt even get 3.9% financing. Interesting statement since I had researched Mitsubishis current financing offer of 3.9% for 72 months ending June 30th

He then attempts to explain what appears to be an internal disagreement about the deal, and is now asking for an additional $1,700 or the deal is off.

Can they do this?? In addtion he said he was going to report the car stolen if I didn't return it or come resign a contract? What are my options?

dino001 · June 2006

They clearly made a mistake, probably combining cash rebate with financing, but if you have a solid paperwork there is nothing they can do. You may ask a lawyer or bluff you would. Tell them what would they do if a local reporter came (oh, they love stories like that). It all depends on how solid the paperwork is.

cccompson · June 2006

A "Certificate Extraordinaire" was nothing more than a private coupon GM sent to folks who had bought GM products in the past few years. It was good for $1500 off any 2005-2007 Avalanche.

In spite mailing the coupon to me, then a reminder, and a few emails, GM has decreed that it can only be combined with zero percent financing on select models. Naturally, the model in which I'm interested is not among them.

It's no wonder GM is going down the tubes.

robr2 · June 2006

It's no wonder GM is going down the tubes.

Well, IMO not allowing combination of discounts will keep GM from going down the tubes. You know - it's that pesky profitability thing!!

british_rover · June 2006

We did something like that once. We combined a special rate with a rebate by accident because of a misscommunication.

Instead of being sleazeballs though we contacted the bank and bought down the rate from the profits of the deal. It turned a fairly profitable deal into a near loser but it made the customer happy.

cccompson · June 2006

Sorry, I didn't make myself clear. I can well understand GM's desire to minimize the amount of incentive it provides. My point was that having invested in a certain promotion (CE), they supercede it with another promotion before it has even run its course. Granted, a cash buyers can still utilize it (which constitute, I assume, a small percentage of their sales).

Handling this in the manner they have erodes their credibility and demonstrates they don't have a clue.

steine13 · June 2006

It's no wonder GM is going down the tubes.

Yep.
They have made their price structure rival the state-owned German rail system. It absolutely boggles the mind. This plan, that plan, here's a list:

GMS
GM Supplier
"In The Driveway"
Cash rebates
Financing rebates (low APR)
Conquest rebates
Loyalty rebates
Loyalty rebate only when trading in
Rebates for financing with GMAC
Rebates for NOT financing (over on the Vibe board, don't take MY word for it)
GM Card: Gold, Platinum, Blue; topped-off earnings; GMS-compatible and non-compatible
Lease Loyalty bonus
Lease Pull-Ahead
Bonus cash (maybe that's covered above, I dunno)

And now the "Certificate Extraordinaire".

I am not making any of this up.

Anybody wanna honestly argue that these guys know what they're doing?

-Mathias

dino001 · June 2006

How about airlines (other than Southwest)? I still think GM has some distance to go to match that

steine13 · June 2006

Sorry for the cross-post with "prices paid". It occurred to me this would really be the place...

With GM, it gets complicated... so I gotta ask here:

For a Silverado 1500 reg cab, what else is there besides the $2,500 rebate? I'm not interested in 0% financing.

Is there a conquest rebate? Or loyalty? Or the dreaded "coupons" at $250 each?

Thanks in advance,
-Mathias

nortsr1 · July 2006

I was interested in a PT Cruiser Limited Edition. "BEFORE" Chrysler Employee pricing. At that time there was a $1500.00 rebate and a $500.00 mfg. to dealer incentive. Most dealers were selling the vehicle for INVOICE less the $1500.00 rebate and also less the 500.00 incentive which meant they were selling the vehicle for $2000.00 below invoice.
With the new pricing plan, the Employee discount now gives a $500.00 rebate...so..it ends up that it now costs "MORE" since the Employee discount program went into effect today.
I think I will now wait for the Employee plan to end and wait for the former rebates... (hopefully).

raleighblazer2 · July 2006

Thank you for the explanation.

I am looking to buy a new Avalanche next week, so I could really use one of these. Do you still have yours? Could we work something out?

Is the Certificate Extraordinaire transferrable to me?

Thank you,

Tom

Rebates, Incentives, APRs - Questions & Comments

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