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Rebates, Incentives, APRs - Questions & Comments

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Comments

  • morin2morin2 Member Posts: 399
    We've all been in that boat. Its a coin toss, or a gamble. How much do you really need the car? If the rebate does fall, do you have a backup plan? Dealers have told me that they don't know until its announced - and I believe them. Its like buying stock - how do you know it won't be cheaper tomorrow? How do you know if you've timed any market to buy at the lowest price? If I needed the car and they had the exact model with all the options and color, I'd buy it and not look back to see if the rebate increased.
  • mrusellmrusell Member Posts: 3
    I know it's a gamble and I think I am willing to wait to see. I don't need the car tomorrow and the car they have is close but not exact to what I want. This will allow me to research a bit more and find the actual car I want. If it means paying a little more - I am ok with that.

    Thanks!
  • morin2morin2 Member Posts: 399
    That sounds like a good plan. I think the first step is to find exactly what you want and the rebates are secondary. I wonder how many buyers "settle" for something because they think the rebate is too good to pass up?

    Good Luck!
  • gayjeepboygayjeepboy Member Posts: 26
    Is there a day or time of the month when new incentives are announced on Jeeps? I am looking to purchase a new 2008 wrangler but I dont think the incentives are high enough yet? I dont want to miss a sweeter deal and I am in no hurry to buy.Thanks
  • mattandimattandi Member Posts: 588
    In the interest of keeping informed

    Anatomy of a "free car" deal
  • lmarwahlmarwah Member Posts: 1
    I was wondering the same thing about rebates and incentives. I started thinking about it when I was driving by a dealer in my area and noticed he was advertising one of his cars with "4000Rebate.com" on the windshield. That got me to thinking and I did some research on this site he was using. I contacted the parent company that owns 4000Rebate.com and they gave me the skinny on rebates and incentives... It seems that the manufacturer releases these deals pretty much at their whim. They base it on the excess inventory the dealers have on their lots, and then subsidise the dealer with these rebates to help him move the cars off of his lot. Even if they put an expiration on the rebate, the can cancel and replace it at any time they want. The dealer just has to go with it. I personally think that rebates are the way to go when buying a new car. Sometimes the dealer will add some of his own discounts to the rebate and you can close a pretty good deal. I found my 2008 Ford Focus at autoincentives.com national rebates page. Great site with current deals updated every day. :)
  • abramianabramian Member Posts: 1
    i am looking to buy a new buick enclave within the next six months. I know they are currently offering 0% interest for 60 months but was wondering if anyone has heard about them offering 0% for 72 months like Ford did this last weekend. Thanks for your help.
  • bigbbdbigbbd Member Posts: 5
    When is the decision made by the automakers of what incentives will be issued? Like Chevy currently has 0% for 60 months on several 09 vehicles but had 0% for 72 months 2 weeks ago. The current incentive looks to be up on July 31st. When is the next incentive usually published?
  • joel0622joel0622 Member Posts: 3,299
    Normaly incentives are quarterly. But the big thing that drives incentives is "days supply" If the days supply gets out of wack then the manufacture will put a good program on. Once they get the inventory back in line they stop or reduce the program.
  • brandmar1brandmar1 Member Posts: 17
    Does anyone know if the $2000 customer retail cash can be used with the alternate APR 2.9% financing for 60 months? I am working with a dealer that said only the $1500 Drive the Difference cash can be used with the 2.9%. The Ford website doesn't mention the 2.9% at all, only that the $1500 + $2000 or 0%.

    Any help would be appreciated.

    Thanks
  • joel0622joel0622 Member Posts: 3,299
    No it can't. One or the other
  • brandmar1brandmar1 Member Posts: 17
    Thanks Joel
  • joel0622joel0622 Member Posts: 3,299
    your welcome. If you would like to post or email me your zip code and the first 2 and last 8 of the VIN on the car you are considering I can tell you exactly what the programs are for your area.
  • oldfarmer50oldfarmer50 Member Posts: 22,559
    Yesterday Chrysler that they were no longer offering $4500 cash back on all vehicles since the C4C program is out of money. Edmunds incentive listings still have the $4500 listed.

    Did I hear the Chrysler announcement wrong or does the incentive page need an update?

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

  • dukebludukeblu Member Posts: 18
    If you look at most incentive listings on Edmunds it shows a $750 rebate for credit union members. Chrysler did something like this earlier in 2009. Cant find anything out about this. Anyone have any idea how this works?
  • armydavearmydave Member Posts: 29
    I ordered my car and was told that I would get any rebate that was available when the car arrived. The rebate says when taking delivery from dealer stock. I did get the rebate when the car arrived. The dealer did not ask for a down payment, and this was a first on an ordered car.

    The dealer did not order this car in my name or I would not have gotten the rebate. Did the dealer do this because he was helping me or did Ford tell them to do it this way?

    I have heard of others that got a rebate on an ordered fusion at other dealers.
  • lrguy44lrguy44 Member Posts: 2,197
    When we order cars thru the Ford system (or any manufacturer I assume), no name is attached. the dealer can mark it a sold unit in his notes. Whatever rebates are in effect when the car is delivered apply. There are no retroactive rebates because the car is not actually sold until you take delivery.
  • lrguy44lrguy44 Member Posts: 2,197
    I am not sure if this has been answered but dealers do not have any prior information of rebates and incentives until they are in effect. Normally, the big changes for most manufaturers are on a quarterly bases and tweeked monthly. Announcement is usually about the first of the month.
    Does that help?
  • pak3010pak3010 Member Posts: 1
    should rebates be subtracted before or after tax and title?

    thanks
    pak3010
  • tallman1tallman1 Member Posts: 1,874
    I believe in all cases (and all products), rebates are figured after tax. Perhaps some states are different.
  • applemac5applemac5 Member Posts: 2
    How do you use the rebate to negotiate the price of a car? I want to buy a new BMW. I see they have a $2500.00 rebate. Do I use it against the msrp?, or lower the dealer cost number? Is there a better way to go.
  • Kirstie_HKirstie_H Administrator Posts: 11,145
    You don't use the rebate in negotiating at all - the good part about the rebate is that it is NOT negotiable, meaning neither you nor the dealer can change that amount. Just negotiate your best price on the BMW, then the $2500 comes back to you regardless of what the negotiated price is.

    When you are negotiating a price, negotiate the price with the salesperson before the rebate is applied. The rebate comes out of the manufacturer's pocket, not the dealership's, so the salesperson should not be concerned about the price reduction due to rebate.

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  • applemac5applemac5 Member Posts: 2
    Thank you. Since this is the case, I am curious, is it harder to negotiate when the company is offering a rebate? I think the dealer would not be as anxious to lower the price, because they are most likely selling more cars. If you are a good negotiator, would it be better to buy when they are not selling as many cars?
  • Kirstie_HKirstie_H Administrator Posts: 11,145
    We've got a whole separate topic on Buying Tips, and I think if you land there and ask questions, you'll get a better variety of opinions.

    The negotiability of price is not related to the rebate, but you're right - it CAN be related to the consumer demand for the vehicle. If the model is flying off dealer lots, you probably won't get a big discount. However, a rebate offer doesn't necessarily mean sales will go through the roof.

    Just go ahead and stop by the discussion I linked above, and post about the vehicle you're wanting to buy. People can help you determine a realistic negotiating strategy that will help you and the salesperson get you into the car you want.

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  • bwjambwjam Member Posts: 2
    Hello, we leased a new 09 Honda Odyssey a while back on a 3-year-lease. The lease ends about a year from now. However, we are in the process of doing a short sale on our home. My husband is the only one on the mortgage loan (and the van lease) and he is the primary wage-earner. His credit, due to missed payments related to short sale, is not good. Mine is excellent but I have no current consistent income except for some freelance income that is good but not consistent each month. We'd like to buy out the lease now so that we know we will continue to have a good car and not need to worry about financing (b/c of the short sale credit issues on my husband's credit) for a while. A few questions:

    -Any chance I can get approved on my own?
    -Since we're buying out the lease early, can we negotiate on the buyout price? Honda said NO it is not negotiable at all, but I thought I've read that it is.
    -Do we need to have the car inspected or anything? (for warranty purposes etc?) ETA: Speaking of which, any tips on what will be the best warranty?
    -Are we best to go through a Honda dealer, or a bank, or?

    Thanks very very much for any advice or info!
  • dtownfbdtownfb Member Posts: 2,918
    Maybe I'm reading this wrong but I'm not sure I would worry about your 2009 Odyssey lease when you are about short sale your house.

    Here's an article discussing short sales vs. foreclosure: http://homebuying.about.com/od/foreclosures/f/072509_Short-Sale-vs-Foreclosure.h- tm

    It discusses how each would affect your credit.

    Personally, I wouldn't worry about the Odyssey until next year. I would focus on your family and getting your finances in order. A lot can happen in a year. Another solution may appear next year.
  • qbrozenqbrozen Member Posts: 32,889
    To answer one of your questions, no, you won't be able to negotiate now. They have you on the hook for another year, so they have no reason to negotiate now.

    If you husband is the only one on the mortgage and car, and you are looking to finance the car in your name, why does it matter if it is done now or 1 year from now? The sale of the home won't affect your credit, so your chances of getting financed won't go down in the future for this particular reason.

    I agree with the above, just wait. It will cost you more to do it now (you'll be paying double interest, for one thing). So you are much better off seeing what the following year brings.

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  • jetwaydavejetwaydave Member Posts: 1
    I just received a dealer quote on a 2009 Denali Sierra.. he gace me two quotes, one with zero interest and one without.. he also told me that If I choose zero interest that the owner loyalty does not apply..does anyone know what's up with that..It's owner loyalty..so anyone with out being a GM owner can get the same deal of zero interest
  • lrguy44lrguy44 Member Posts: 2,197
    Most dealer incentives are lost with the special financing. The program is column A or column B - not both.
  • explorerx4explorerx4 Member Posts: 19,250
    2023 Ford Explorer ST, 91 Mustang GT vert
  • pjd6pjd6 Member Posts: 1
    Toyota had an incentive in January for new Tacomas--0%APR or $2000 cash back. We went to the dealer to buy a Tacoma; they didn't have the model/trim we wanted, so they put in an order for one ($25K MSRP). The dealer would not close the deal, because they did not have a VIN for the vehicle; they said they could not guarantee the incentive would continue after 1 March, would not talk trade-in, price, etc. Well, the special incentive for Tacomas is history. My concern is that when we go back to the dealer to close the deal they will take $2000 off the MSRP to make up for the lost incentive but won't give us a better deal because they already did us a favor. When we go back to the dealer how can we negotiate both the cash back plus a good deal from the dealer?
  • lrguy44lrguy44 Member Posts: 2,197
    Since that incentive was a factory incentive the dealer needed the VIN to make his claim to Toyota and get the $2000 cash back. You can try to negotiate a good deal, but the $2000 is gone.
  • delthekingdeltheking Member Posts: 1,152
    Dont worry,toyota is about to offer great incentives this March pretty soon!! So just wait and you can snag a great deal !!
  • sirbellysirbelly Member Posts: 2
    Hi all,

    I'm negotiating a car sale now and there is a manufacturer's rebate as well. Instantly the salesperson said the car sells for $30,000 but there is a $2,000 manufacturers rebate so your price would be $28,000.

    All the reading I've done says the manufacturers rebates should be factored in post car sale price and tax because manufacturer's rebates should be applied towards the loan as part of the down payment.

    Is the salesperson trying to be cleaver and make more money? I ran the numbers and the amount of interest paid on the loan is greater if I go the route the salesman is trying to present.

    Thanks for any information.
  • steine13steine13 Member Posts: 2,818
    Technically, the manufacturer's rebate -- if it's a "rebate to customer" as most are -- is literally "cash back" after the sale. Therefore, sales tax is computed before the rebate is taken into account.

    Customer rebates are published by the manufacturers, so all you need to do is go to their website.

    In reality, there rarely is "cash back" as the customer typically applies the rebate at the time of the transaction. By "apply" I mean it counts as if the customer brought a check for that amount.

    As far as manufacturer's rebates should be applied towards the loan as part of the down payment -- that's completely up to you. I've taken rebates and paid cash for the rest, and I've taken rebates and paid some cash and taken a loan for the rest.

    The best way to think about it is this: The rebate money is your money that you bring to the dealership. You can do with it whatever you want... except take it home with you if you don't buy the car ;->

    Good luck,
    -Mathias
  • qbrozenqbrozen Member Posts: 32,889
    If you tell us what car, we may be able to help you better.

    '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

  • sirbellysirbelly Member Posts: 2
    edited March 2010
    2010 Prius 2.

    THe numbers I used were just for example.

    $750 Customer Cash Back Savings is from Toyota Motors.
  • british_roverbritish_rover Member Posts: 8,502
    If I was looking to buy a Prius now I would be offering Invoice, minus holdback, minus all incentives, minus another 1,000 or so. Yeah it is the only Toyota really selling now but Toyota is still in a sales free fall.
  • ccappaccappa Member Posts: 29
    Edmunds is showing two incentives for 2010 328xi sedan. The $2500 "Spring Drive Credit" and an $1840 All Wheel Drive Credit.

    BMW's website only lists the $2500 Spring Drive Credit, no mention of the All Wheel Drive Credit. The dealer I've have contacted by e-mail also only mentioned the Spring Drive Credit.

    Is there something I'm missing, or is there in error in the Edmunds listing?

    Thanks
  • rayainswrayainsw Member Posts: 3,191
    my guess is the bolded phrase:

    $1840 Cash to Customer start: 03/02/2010 end: 04/30/2010 Get Dealer Pricing
    Restrictions $1,840 All Wheel Drive Credit can be used in conjunction with Lease, OwnersChoice, Retail Finance or Select contracts. It can also be used for customer purchases not utilizing leasing or financing through BMW Financial Services. Please see your dealer for details.
    Comments Dealer participation may vary. Incentives and Rebates are provided subject to the terms of our Visitor Agreement.
    2022 X3 M40i
  • Kirstie_HKirstie_H Administrator Posts: 11,145
    Are the Toyota incentives tempting you? A reporter wants to know. Please respond to pr@edmunds.com with your thoughts no later than Tuesday, March 23, 2010.
    Thanks,
    Jeannine Fallon
    Corporate Communications
    Edmunds.com

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  • johnk3rdjohnk3rd Member Posts: 1
    Audi listed on edmunds.com as providing an incentive of 2.9%APR for 60months on the purchase of a 2010 audi A6. The listed audi premier dealership would not honor this and offered only an interest rate of 3.9%APR for 60 months. I have a credit score of 810 .What recourse if any would anyone recommend?
  • lrguy44lrguy44 Member Posts: 2,197
    Find another Audi dealer that will participate.
  • Kirstie_HKirstie_H Administrator Posts: 11,145
    This might entail some time on the phone calling other dealerships, but that's really the only thing you can do. Unfortunately, you can't force the dealership to participate in that incentive program. I'm not sure what the process is in deciding which dealerships will or won't participate, but perhaps they're moving enough stock to not need to provide incentive?

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  • kyfdxkyfdx Moderator Posts: 235,188
    It's typical of a lot of Euro make dealers... They are participating in the incentive program.. just marking up the promotional rate by 1% to make extra profit.. The bank pays them about 70% of the extra interest, upfront..

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  • can50turtlecan50turtle Member Posts: 11
    edited September 2010
    Questions ... I'm interested in purchasing a new car for $28,000, my trade-in is worth $25,000. So, I planned on paying the difference plus taxes etc myself. But, the car has a $1,000 rebate if you finance through their identified firm. Could I take advantage of that? That would mean the car's selling price would be $27,000 ... so I'd be financing $2,000. Is there a minimum amount one must finance before they can take advantage of rebates like this? If not ... the financing percentage is NOT 0%. Would I be able to simply pay off the $2,000 loan the next month, or would I need to really pay across 36 months? Thanks.
  • Kirstie_HKirstie_H Administrator Posts: 11,145
    It'd probably help if you let us know what vehicle you're looking at. What I've gleaned from some of our salespeople is that, generally, when you take the rebate for financing, you have to keep the loan for something like 90 days before paying it off. As far as a minimum... no idea, but post the vehicle and maybe one of our salespeople will have an idea.

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  • ollie126ollie126 Member Posts: 1
    Does anyone know if Suburu is doing any financing deals beyond 36 mos?
  • 01010000820101000082 Member Posts: 3
    I am in the marker for a new car and was looking at a 2010 Honda model that qualifies for 1.9% APR. The dealer ran my credit and Honda Financial Services classified me in a credit tier" that qualifies for the promotion, but the dealer wouldn't honor it saying that the best he could do is 3.74%

    I know dealers often tack on interest rate rates from loans, but this one is advertised nationally by Honda Financial Services for qualified buyers, which by their own accreditation I am.

    To me this seems to have crossed the line from hard negotiation into "bait and switch". Anyone else had any similar experience and/or advice.
  • jipsterjipster Member Posts: 6,244
    Maybe you were at the low end of that "tier"? I'd try another Honda dealership.
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