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Rebates, Incentives, APRs - Questions & Comments

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Comments

  • joel0622joel0622 Member Posts: 3,299
    Is there a limit on the percentage of the purchase price you can finance? I mean could I finance 80-90% at this low rate?

    If your credit is good you could finance 140% @ that rate.

    Also, rebates don't get peoples attention like they used to.

    Sorry no 0% on the Mustang GT's. But I will put you on my list to call if it ever happens :D
  • oldfarmer50oldfarmer50 Member Posts: 22,559
    "...If your credit is good.."

    I guess it is. :confuse: Today when I was talking about rates with my credit union lady I mentioned that my FICO was 790 and I think I heard her gasp. She then approved me for 100% financing of any car I wanted to buy.

    No wonder people get into money trouble. Lenders just throw money at you.

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • cccompsoncccompson Member Posts: 2,382
    No, there's nothing you've missing here - manufacturers sometimes do things that make little sense.

    One of the biggest mistakes I ever made was in buying an '02 Chevy Avalanche with zero financing. The truck stickered for 38 something and the purchase price was 32 and change. Without my asking, the dealer said GMAC would finance 40 on it. I should have put the extra 7 plus in my pocket but, no, I was content with just financing the purchase price.
  • dino001dino001 Member Posts: 6,162
    It was a mistake only if you had used that 7 grand on something different than some unnecessary purchase that you wouldn't make otherwise.

    On the other hand, if not having those 7 grand made you not buy something and wait until saved some money, that was almost as good as taking the 7 grand and putting it into work - with advantage of building equity faster. So - not such a big mistake, after all.

    2018 430i Gran Coupe

  • joel0622joel0622 Member Posts: 3,299
    Dino, you seem to be on track with this whole investment/money saving gig. Let me ask your advice on the subject.

    I had people ask me about that allot when we had the 0% for 72 going on. If they had for instance a PIF trade that was worth $10K they would want to know if it would be a good idea to get there trade equity back and put it in a CD/Money Market/etc. They would show me spread sheets on how much they could make on there $10K over the 6 year period.

    I would tell them that I am not a financial adviser but IMO the only way that made sense is if they were going to keep the car for the full 6 years or at least till they had equity.

    My train of thought was that if they financed 100% plus the taxes and then came to trade again in a couple years then they would be out of equity. Then they would roll that neg into a new loan at say 6.5% and kind of defeat the purpose. Then it starts the process of rolling a little more each time and before you know it your neg exceeds the original $10K. I would go on to tell them that car buying is not an investment and they should not look at it as a money making proposition in any way, just take the program for what it is worth and enjoy the free money. if they wanted to invest something I would be happy to tell them what there monthly finance charge could have been and they can invest that if they want to.

    Good advice?
    Misguided advice?
  • qbrozenqbrozen Member Posts: 32,889
    well, you are correct IF they roll negative equity. Of course, if they were smart, they would use what they put away and earned interest on to pay off that negative equity if the time came that they wanted to trade .... unless, of course, there was another 0% deal. :)

    They don't need to keep the car 6 years, they just need to not roll negative. In other words, if the option is pay $5k down now or take a 0% loan for $5k now and earn interest on your $5k, even if only for the next 2 years, then take that 2nd option!

    I am always of the opinion that you should take cheap money when it comes your way and use it to the fullest. I have 2 extremely low money factors on 2 cars right now (less than 1% each), while my money sits in a money market earning almost 5%. I could pay off in cash right now ... but why would I?

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • dino001dino001 Member Posts: 6,162
    I'm with you on that. Negative equity at 0% levered against investments makes sense only if they keep the car long enough to actually take advantage of that interest.

    There is also a significant risk exposure - larger than they probably realize - if the car gets totaled early, they will end up owing large chunk of cash, so if the investment is not very liquid (CD, real estate) or volatile (stocks), they may end up losing on the deal. Buying Gap against it would of course defeat the whole leverage, so it makes no sense, either.

    I like to keep things "real". If it's a car loan, it's a car loan, not car plus three trips to the mall. Mixing or levering those things against each other is only good for very disciplined and self-concious people who can say exactly how much money they really have after this "creative accounting" schemes are included. My short experience tells me it is most often done by people who are exact opposite - they don't want to face the truth, because it may mean they are living beyond their means and those levers are done to tell themselves they are smart and obscure the truth from themselves. They build Enron in their own personal finances. Of course, as detective Monk says "I may be wrong - but I'm not".

    2018 430i Gran Coupe

  • dino001dino001 Member Posts: 6,162
    money market earning almost 5%.

    Enjoy it while it lasts - not for long. After this cut it will be "almost 4%", soon enough (more cuts) - "almost 3%", etc. ;)

    2018 430i Gran Coupe

  • qbrozenqbrozen Member Posts: 32,889
    yeah, I know it won't last.
    But, heck, its been lasting way longer than I originally thought, so its all just icing. ;)

    '11 GMC Sierra 1500; '08 Charger R/T Daytona; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '08 Maser QP; '11 Mini Cooper S

  • kokopuffskokopuffs Member Posts: 5
    Does anyone know if Honda is going to have any CR-V incentives in the next few months? I've seen that they have lease incentives and finance incentives on all but the CR-V. I'm in the market for an EX-L, but would prefer to wait until some incentive - preferably financing, is offered. I asked at the dealership this weekend and got the "well we have terriffic deals anyway". Thanks, but no thanks :)

    Thanks in advance.
  • dtownfbdtownfb Member Posts: 2,918
    Generally the sales people won't know about incentives until the day before they take affect. Honda on ly uses incentives if they need to move cars. I guess you can check the sales of the CR-V compared to last year. If they are slower then maybe Honda will initiate special financing to move them.
  • cccompsoncccompson Member Posts: 2,382
    Not likely since it's about their hottest seller. I forget the numbers but '07 CR-V sales were WAY up over '06.
  • kingnhkingnh Member Posts: 4
    Is there any way to tell what the next round of Incentives or Rebates are going to be? Common sense tells me thats a big nope, but thought I would ask.

    However, there must be a list of the past incentives/rebates for a particular vehicle? I have searched and can not find anything of the sort, all I can find is the current ones. If armed with the last 6 months of historical rebates I can better judge how good the current ones are. I have no idea if the current ones are historically low, average, or great.

    Currently am looking at Tacomas and Frontiers which have $2250/$2500 cash back or (0%/36)/(0.9%/60) financing respectively.

    thanks
  • oldfarmer50oldfarmer50 Member Posts: 22,559
    "...If armed with the last 6 months data..."

    That's a tough one. Good question though. Is there a source that keeps track of historical rebate data.

    In a recent new car purchase I had enough lead time that I kept track of rebates on the models I was considering for a year prior to shopping. I noticed that the rebates began to increase in Nov.--Dec and then got progressively greater throughout the winter. They then stabilized as demand picked up in spring. The final increase came starting in July as they tried to clear out their lots.

    I've noticed big incentive increases if a new redesign is coming out in the fall so you might want to track that as well.

    Maybe someone here knows of a site that keeps track of past rebates. Automotive News might have that info if you have access to back issues.

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • smokey75smokey75 Member Posts: 434
    I just recently found out that I have Chrysler discount pricing available to me through a family member who used to work at corporate. I'm not sure what Chrysler calls their plans or which one is available to me but he said they would issue me a number that I would then take to the dealership. The price would then be fixed with no negotiation. He said it usuallys runs about 4-6% below invoice or 8-14% below MSRP. Anyway, I'm looking at Dodge Chargers & my question is this. They currently are offering a $3000 cash allowance. Should I still get this below whatever the price is?
  • joel0622joel0622 Member Posts: 3,299
    Depends. If Chrysler works the same way Ford does then your plan price will be 4% back of invoice less any Factory rebates and Dealer Cash. Plan memebrs do not qualify for special offers like college grad, first time buyer, American QH, or any of the private offer stuff.
  • Kirstie_HKirstie_H Administrator Posts: 11,146
    When I did that a few years ago, it was 7% below invoice, plus any incentives or rebates available to the public. In addition, the dealer told me there was a $500 discount coupon on Chrysler's website, and I was allowed to use that too. You had to go through the "build your vehicle" module on the website, and at the end, the coupon would pop up (or be e-mailed to you, can't recall), so you might check that out just in case.

    Hope you get an equally good deal!

    MODERATOR /ADMINISTRATOR
    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.
    Share your vehicle reviews

  • smokey75smokey75 Member Posts: 434
    Thanks for the replies... that would be great if I got the incentives on top of the discount.
  • Kirstie_HKirstie_H Administrator Posts: 11,146
    A reporter hopes to speak with first time car-buyers and discuss what features they are looking for in a car. If you are a first-time car buyer, please respond to ctalati@edmunds.com with your daytime contact information no later than Friday, March 28, 2008.

    MODERATOR /ADMINISTRATOR
    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.
    Share your vehicle reviews

  • Karen_SKaren_S Member Posts: 5,092
    A reporter is hoping to talk with consumers who purchased a car from 2004-2006 because of the incentives manufacturers were offering, such as employee pricing. Please respond to ctalati@edmunds.com before Friday, May 16, 2008 with your daytime contact information.
  • merckxmerckx Member Posts: 565
    There was $3,000 off from GM a 2008 Lucerne...that program ended yesterday. Another program started today('til 6/2)..$3,000 off a 2008 Lucerne.
    Do you have an idea if the incentives will increase after June 2?
  • dtownfbdtownfb Member Posts: 2,918
    No one will be able to tell you whether or not rebates will increase on June 2nd (or decrease). It all depends on sales and how much inventory is on the dealer's lot plus other factors none of us have access to. With the way sales are so far this year, my guess is there will be more rebates this summer into the fall.
  • hochmeisterhochmeister Member Posts: 1
    Hello,

    Jeeps website does not give incentives, but suggests you talk to a dealer in a 'wink wink' they know what the incentives are kind of way. A few dealers claim no incentives, but one tells me there is a $500 incentive. Who to believe. Anyone know the actualy incentives dealers are gettin for Wranglers right now?

    Thanks,

    Hoch
  • dtownfbdtownfb Member Posts: 2,918
    It's dealer cash so it depends on how the dealer is feeling:

    http://www.edmunds.com/incentives/RebateController?styleid=100905379&popuppage=o- n
  • Kirstie_HKirstie_H Administrator Posts: 11,146
    It's always worth doing the "build your vehicle" online. I had a (very kind) salesperson tell me once that if I did that, at the end of the process I'd get a coupon from Chrysler for $500 off. Sometimes they do these unannounced (or not widely publicized) 'net coupons.

    Anyway... takes only a few minutes to build the vehicle, so you're not out much time if there's no coupon at the end.

    MODERATOR /ADMINISTRATOR
    Need help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.
    Share your vehicle reviews

  • claw1claw1 Member Posts: 1
    Has anyone figured out the GM employee pricing rebate that is currently being offered? I can't figure out how to determine how much is deducted from MSRP or invoice. Thanks.
  • nortsr1nortsr1 Member Posts: 1,060
    Just go to GM.com and hit the right buttons...You put in your make and model and it gives you the prices.. even your local GM dealer would give it to you.
  • rayainswrayainsw Member Posts: 3,191
    If you start here:

    https://www.gmfamilyfirst.com/ip-gmemployee/

    .. it will take you to GMbuypower - and once you finish selecting
    a make \ model \ option pkg level -
    it will bring to to dealers in or near your zip.
    For each vehicle in dealer inventory the Employee Price
    will display right under the MSRP:

    2008 STS (4.6L V8)

    Engine: Engine, 4.6L V8, 320 HP

    Transmission: Trans., 6-Spd., Auto, RWD

    Interior: Ebony Nuance Leather

    Exterior Color: Black Raven Exterior
    Match
    MSRP*: $61,945.00
    GMS Price: $55,295.05

    * Window Sticker
    * Request a Quote

    Also - if you display the Window Sticker,
    the GM Employee price also displays there...

    Good luck!

    - Ray
    Tempted - bought in 2005 - but not this time around.....
    2022 X3 M40i
  • rayainswrayainsw Member Posts: 3,191
    Addendum:

    My local Caddy dealer's web site shows both
    an Employee Price AND a further, 'cash back'
    discount - at least on the 2008 STS & CTS models
    I just checked....

    $4,000 on STS and $2,000 on CTS.

    Makes a fairly well "loaded" 2008 STS V8 with
    MSRP = $63K
    Sell = $52K

    Interesting.....
    - Ray
    May go drive one tomorrow...
    2022 X3 M40i
  • rivieraranchrivieraranch Member Posts: 28
    What would be a good discount for a new, held over 2007 Buick Lucerne with an MSRP of $35K? I recevied an opening proposal of $8,000.00 off, or 22.4%. I think they should go way lower than that.
  • rivieraranchrivieraranch Member Posts: 28
    The lease worked out great so far. It is up in March 2009. I am under allowed mileage with no excess wear and tear.

    I just shopped for a new 2008 Buick under the employee pricing event, but quickly learned that they were concealing the fact that the $2,000.00 bonus for ending the lease early was offset by the ridiculous rates that GMAC was charging on the new sales finance contracts for the new purchase. GMAC will waive only 2 of my 6 payments, so you know what, screw GMAC and GM.

    I may try making a deal on one of the lonely new 2007 models rusting out there. I would plan to keep for long enough that depreciation would not matter. What would be a good discount for a 2007 Buick Lucerne CXL V-8 with an MRSP of $35K?
  • jiw2jiw2 Member Posts: 4
    Hi, we have a deal in place in which a local dealership has located our car at a dealership across the state. It is the only new 2008 Elantra GLS with the color and equipment we want that is anywhere near where we live. It turns out that the car has some miles (through a promotional lending as a demo car) but will still be considered new (we will still get all Hyundai warranties in full, etc.). Because it has over 3000 miles, the dealer that has the car can apparently offer an additional incentive; however, according to the local dealer here, that dealer is unwilling to trade them the incentive; they want to keep it for themselves. They are willing to trade the car to this dealer, but not the incentive. As a result, we won't get this additional extra-mileage incentive passed along to us. Does this sound legit? Can dealers keep the incentive on a car they are trading to another dealership?
  • oldfarmer50oldfarmer50 Member Posts: 22,559
    "...I think they should go lower than that..."

    I think the fact that the car has been sitting around since 2007 (maybe late 2006) warrants a DEEP discount. The fact that it is still there may indicate the dealer has dug in his feet and wants "all the money" for a car that is not in demand.

    Offer what you think it's worth out-the-door. Tell them this is the only offer they will get from you. Walk if they squawk.

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • rivieraranchrivieraranch Member Posts: 28
    What do you think that is as a percentage?
  • rayainswrayainsw Member Posts: 3,191
    .. and GM added the 2009 Pontiac G8 GT.
    - Ray
    Negotiating right now.....
    2022 X3 M40i
  • rivieraranchrivieraranch Member Posts: 28
    GM extended the program because they did not sell all the 2008 models. This goes to show how slow the economy is right now.

    I am negotiating on a new 2007 Lucerne and it is shocking how many new 2007 units are still available. Most of the dealers who have these are jerks; that's why they still have them. If they were reasonable they would have sold them long ago.
  • rivieraranchrivieraranch Member Posts: 28
    The current GMAC pull ahead program, waiving 2 months of payments, is tantamount to a joke.

    Does anybody have an educated guess as to whether GMAC is likely to increase its pull ahead program in the fourth quarter (10/1/08)?
  • SophiaRoseSophiaRose Member Posts: 2
    I went and looked at a dodge nitro on 01/24th the salesman gave me a figure of $7500 off MSRP. He then said that deal is only good for that day because of the new program, Employee pricing which started 01/26. He called me Monday to let me know it got worst the discount was not $7500 anymore but only $5000. wouldn't you think with slumping sales and things getting worst that it would have gotten better? should I wait to buy? future rebates?
  • dtownfbdtownfb Member Posts: 2,918
    If you aren't in a hurry to buy a vehicle, wait. I don't see sales improving since we continue to see the unemployment rate increase (fewer buyers). If your current car can last a bit longer, just wait.
  • oldfarmer50oldfarmer50 Member Posts: 22,559
    "...He then said that deal is only good for that day..."

    Have you checked to see if he's telling the truth? While rebates change they usually do so at the beginning of the month. It's an old salesman's tactic to tell you the price is only good today so you feel a sense of urgency.

    Check with Chrysler (corporate not a dealer) to confirm that the rebate changed at the time the salesman said it did. If he was telling the truth I would go back to him when the rebates are more to your liking. If he was lying, avoid him like the plague.

    You can get some pretty good idea of current rebates here on Edmunds. Good luck.

    2019 Kia Soul+, 2015 Mustang GT, 2013 Ford F-150, 2000 Chrysler Sebring convertible

  • LuckyduckLuckyduck Member Posts: 2
    Hello, I received a letter in the mail from a local dealer for $7000 off the price for certain new vehicles. They indicated that their pricing is based on Edmunds so my question is, should I expect the $7000 off what edmunds is currently showing for the TMV price or is the $7000 already built into the TMV price?

    Thanks
  • dino001dino001 Member Posts: 6,162
    What do YOU think? ;)

    When dealers (or any retailers) tell you your price is "$XX off" (discounted) it's ALWAYS vs highest reference price they can find - most of the time it's MSRP. Translation: the letter says "Edmunds TMV say it's $7000 off MSRP and we are offering it you" tax, tag, title, dealer fee, WAC, only on selected vehicles in stock

    2018 430i Gran Coupe

  • LuckyduckLuckyduck Member Posts: 2
    Well the letter does not much anything about Edmunds, that was communicated over the phone. So my thinking is that it's 7k off the MSRP, but if Edmunds says the TMV is $1000 less than MSRP then the 7k should be coming off the TMV price. Is my thinking correct on this?

    My argument back to the dealership if they say the 7k is built into the TMV price is that TMV is based on vehicles sold, this "incentive" does not start until this weekend.
  • steine13steine13 Member Posts: 2,818
    let me rephrase what dino said:

    the letter is meaningless.

    ifyou want to buy a car, do your research, pay market price.
    ignore all dealer advertising, pay attention to manufacturer offers only.

    -mathias
  • fezofezo Member Posts: 10,384
    Indeed, price is an amazingly elastic term. there's a Hyundai dealer in NJ that advertises like mad that all prices are 30% off the dealer posted price.

    You can probably figure out taht the dealer pads all the cars with enough cheap mop and glow and what have tiy to bring the price of the car 30% over MSRP. what you get is a car for list price that they pretend is a bargain. You'll find the same trick with different phrasing everywhere.
    2015 Mazda 6 Grand Touring, 2014 Mazda 3 Sport Hatchback, 1999 Mazda Miata 2004 Toyota Camry LE, 1999.
  • tidestertidester Member Posts: 10,059
    Interesting. A 30% discount off of a 30% markup works out to a 9% discount.

    tidester, host
    SUVs and Smart Shopper
  • ravenous2ravenous2 Member Posts: 2
    I am thinking of purchasing a 2009 RAV4 in the next few days. There are no incentives and offers right now. When are offers released? Is there anyway to find out what they are before they are officially released?
  • mrusellmrusell Member Posts: 3
    :confuse:
    I am ready to purchase a 2009 Malibu. Tomorrow (March 2) is the last day for the current rebate which is $2750. Should I wait and will the rebates get better or worse?
    Please help! I need a new car and not sure if I should wait another couple of days to see what the new offers will be. Anyone know what they will do?
  • zq8zq8 Member Posts: 82
    I would wait till Tuesday for new incentives.
  • mrusellmrusell Member Posts: 3
    So you think I should sit tight and wait? I felt rushed to purchase tomorrow but I know I will kick myself if the rebates go down since a $2750 rebate isn't bad but If I can get more that would be awesome. I am hoping they stay the same or increase for March 2009. I just hope the car I want is still available. It's a gamble but I think I will wait and hope for more.
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