Rebates, Incentives, APRs - Questions & Comments

CarMan@Edmunds · January 1998

Jeff, I'm not sure what region of the country you are in. Mazda's incentive programs vary by region. The information provided by Edmunds IS RIGHT. There definitely is $4,000 on the '97 Millenia in Mazda's Western Region. This program is effective until March 2nd. No matter what region you are in, there is should be some sort of support on the '97 Millenia. I'm not sure why the Mazda customer service representatives treated you the way that they did, but it is possible that they do not want you to know about the rebate. In any case you would not have been $4,000 poorer because of the Edmunds information. The information on incentives and rebates on the Edmunds site is provided to help educate you as a consumer so that you can get the best deal possible on your car. Good luck in shopping for your new Mazda.

tbird97 · January 1998

If the Explorer was registered (not just drove around w/dealer plates), it will be considered new in most states. BUT dealers generally will treat the car as (almost) used.
If its considered new, negotiate based on what a new Explorer will cost minus rebates, holdbacks, and for at least for $0.15 per mile and if its used, try taking something off that.

I'm not sure if Ford's warranty kicked in the day it became a demo OR if it will when its sold.

bodejo · January 1998

Is anyone aware of any rebates in the works for the Dakota?

russia22 · January 1998

Under holdbacks for Nissan, it mentions 2% of total invoice + 1.5% for a floorplanning allowance. Does anyone know:

1) Is the 1.5% of the total invoice?

2) What is a floorplanning allowance?

potential · January 1998

Here in Boston, several Ford dealers are promoting special January prices. I went in and offered this on a Windstar:
dealer invoice(roughly $21.5K)
minus Ford's rebate($1500)
minus dealer's advertised discount($2500)
plus 3% profit.
They refused to include the discount. They said they would be giving me the van at much less than their cost. I don't get it. Edmunds and every other source says you should start from invoice. Well, when dealers are advertising sale prices, shouldn't you take the sale price off of invoice? Otherwise, it's not a sale. If that's the case, I won't bother fighting the crowds at the President's Day "sales." Any suggestions?

scottcath · January 1998

I'm confused. Are the terms incentives and dealer holdbacks the same? Are these both deals the manufacturers make with the dealers to motivate them to sell their cars? I'm looking at a dodge caravan which has a rebate of $1000 and according to edmunds, has a dealer holdback of 3% MSRP. Does this mean in my negotiations I can deduct $1000 off of the dealer invoice plus deduct the
3% to be at the lowest "starting price" and then figure in what profit I'm willing for the dealer to make?

guitarzan · January 1998

Incentives is a general term describing ANY special compensation to the customer. The dealer holdback is one particular incentive out of many.

Yes, although some incentives like added dealer accessories are dealer promotions.

Correct, and that is exactly how I would proceed. Even consider that at any given time, several layers of the dealership may have hidden incentives that you cannot possibly know about. Because of that, I would even start negotiating lower.

guitarzan · January 1998

Jeff, floorplanning is the expense the dealer pays to keep vehicles on their lot. Some people have posted that the figure is a percent of vehicle cost, which I cannot verify. The dealer does pay it on a monthly basis.

CarMan@Edmunds · January 1998

In regards to the "Sale" price issue. The
dealership that you are speaking about may have already been including the $1,500 Ford rebate in their sale amount. When you came in and knew that this rebate existed and tried to combine it with their "Sale" is was too much for them in their mind to discount the vehicle.

CarMan@Edmunds · January 1998

Actually, scottcath the Dealer Holdback is not an incentive at all. Incentives are rebates given by the manufacturer on a specific vehicle in several forms including, consumer cash, dealer cash, special financing, and supported leases. The consumer cash is openly talked about and advertised. While on the other hand, dealers do not want you to know about dealer cash. That way that can use only part of it or none of it at all depending on how hard a customer is negotiating.

The Holdback amount is sort of a dealer secret profit. They definitely do not want consumers to know about it and it is not intended as a rebate to consumers. Occasionally, dealerships will reluctantly dip into the holdback amount on a deal if the consumer is educated enough to know about it and drives a hard bargain.

russia22 · January 1998

guitarzan:

I'm a bit confused. You mention that the dealer pays every month. Yet, according to the holdback specifics, Nissan pays the dealer 1.5% of invoice as floorplan allowance.

Should I gather from what you said that the dealer pays every month, but gets some/most back when he sells the car?

scottcath · January 1998

Can someone tell me if the dealership ever negotiates on destination charges and "advertising costs". It seems to me the dest. charges are not flexible, but I'm not sure about advertising charges. We were quoted $255 for advertising costs for the dodge grand caravan. Also does anyone know the current incentives offered to dodge dealers for selling by the end of this month ( January)

ahenthus · February 1998

On the dealer incentive list it has $2000 or $5000 on the 98 Deville. Does anyone know which is which? Does the $2000 apply to the base car and $5000 to the others?

sschwm · February 1998

any factory incentives on 98 town car lease

sschwm · February 1998

any factory rebates on 98town car

guitarzan · February 1998

Scottcath, I think people asking your same question need to take a step back and look at the overall picture. A dealer will not actually negotiate any of its costs. If they do, it is an immediate loss. And, if they say that they'll give you a break on a true cost, then they are merely siphoning part of the profit they are making on the price of the car to fill in the gap. And do the finance calculation yourself. If they pad your payment at all, then some of your effort will be flushed...

I recommend verifying the advertising cost in your region by calling another dealership or 2. The cost of advertising is typically a percentage of the vehicle price (MSRP I think). Once you know that cost for sure, concentrate on negotiating the price of the car, and any options that actually contain a profit markup.

guitarzan · February 1998

Sorry that part on calculating the payments wasn't put at the end. I should have spell checked to proofread what was sent, because that part is way out of place.

CarMan@Edmunds · February 1998

The majority of the '98 DeVilles will only be eligible for a $2,000 incentive. The $5,000 is only given to dealers who sell cars from a special inventory pool.

CarMan@Edmunds · February 1998

Yes, there are both special leases and cash on the '98 Town Car. Currently, Lincoln is offering a 1.75% lease rate for 24 month leases or $2,000 dealer cash. The $2,000 does not apply to units using the special lease.

lesli · February 1998

Does anyone have Pontiac Bonneville, and if so what do you think of it?

russia22 · February 1998

How often does Edmunds update it's rebates/incentives page? I'm looking for Nissan Maxima info, but the info Edmunds has expired on 2/2/98.

CHU97CK · February 1998

When do the current rebates/ incentives come on?

CarMan@Edmunds · February 1998

Edmunds updates the incentives page as soon as they get the information and it can be processed. Expect the Nissan incentives to be updated on Monday or Tuesday. Specifically, the Maxima dealer cash should not be much different than it was last month.

penfan1 · February 1998

Looking to purchase a Nissan Pathfinder SE
and I am not sure on exactly how to proceed with
the negotiation process. Is the following
correct/realistic....verify dealer cost(invoice)
minus Nissans' factory rebate of $2000, minus
dealer holdback of 3.5%, plus dealer markup(2%),
plus destination charges?

Tarak · February 1998

I am planning to buy a Honda Accord LX shortly.
1)Does anyone know if there are any incentives being offered?

2)Does Honada normally participate in the President's day sales?

3)Does anyone know dealer invoice prices for the 6 cd changer and key less remote entry with siren and trunk opener.

4)I have been approved for a 7.6% loan from Chase Manhattan Bank (I live in CT), they said I have untill the 17th to purchase the vehicle. Does anyone know of a better financing alternative? Will they extend it beyond the 17th if I need more time?

5)I am a little confused about the anti-theft security system. The brochure says the car has an electronic ignition with immobilizer. What does this mean? Is there a coded chip embedded in the key, without which the car's ignition system will not work? If that is so, Can the car be hot wired in-spite of this? and Would this prevent me from installing a remote starter?

ahenthus · February 1998

Tarak,
Don't worry about Presidents' Day sales. It is not the dealer's sale that'll get you a good price. It is your negotiation skills that will make the biggest difference. Look into the different buyer advice web sites like Edmunds and Motley Fools. Follow that advice and you'll beat the prices the Presidents' Day sale shoppers get.
Claude

CarMan@Edmunds · February 1998

When trying to decide how much money to offer a dealer for a vehicle, like the Nissan Pathfinder, it is important to first calculate approximately how much the dealer paid for the vehicle. You can do this by taking the dealer invoice, including destination, and subtracting the holdback amount from it. In this case the holdback amount would be 2% of the MSRP minus any destination charges. Once you have this number subtract the current incentive on that specific vehicle. The only step that remains is to figure in a reasonable dealer profit. This amount can vary depending upon many factors including how popular the vehicle is, how tough the dealer is, etc... Typically this amount can be anywhere from 2% - 5% or more. I hope this helps. Good Luck.

CarMan@Edmunds · February 1998

There are currently no incentives being offered on the Honda Accord, Tarak. The new Accord is so popular that Honda does not have to offer any, and the still sell like crazy. Furthermore, I don't think that Honda is going to have a national Presidents Day Sale. However, it is possible that your local Honda dealer may be having one. Unfortunately, I was not able to find out the dealer invoices on the options that you mentioned.

As far as the financing goes, I can't guarantee it but there is a good possibility that the bank will extend the 7.6% past the 17th. That is a better rate than you could get through Honda Finance.

You should ask any specific questions that you have about the Accord itself, such as the security system, in the Sedans conference. Good luck shopping for your new Accord.

barney1 · February 1998

Boy, I am in the middle of a very bad experience with my NEW '98 Honda Accord LX. I am a previous Accord owner of 8 years and just purchased the NEW Accord last month. The moment I drove it out of the showroom I knew I had made a mistake. I now understand why they say don't buy the 1st year of a new model car. This car is completely redesigned, and has NO previous history with the older Accords except the name. The name may be top of the line, and yes it may look good from the inside and out, but under the skin this car feels like a poorly constructed car.1.The suspension is very weak.2.The steering does not remain straight(I brought it back 2 times for alignments)3.Auto transmission feels like a bucking bronco4.Cornering is poor
At this point I have no way out of this car except to sell it as used.Good Luck to all of you interested in the Accord. Go spend your money at Nissan. Questions: Bsugarman@cyberagency.net

Irishbear · February 1998

we are about to buy a '96 maxima, does anyone know of any holdbacks or incentives that the dealer may not tell us about? If so, please respond before 02-12. Any Maxima information from previous owners would also be welcomed.
Thanks

CarMan@Edmunds · February 1998

Irishbear, is the Maxima that you are about to buy a new car? I can't imagine that dealers still have many '96 models left on their lots. Either way to my knowledge there are no customer or dealer cash programs still available on the '96 Maxima. If the car is still a officially a new car a 2% dealer holdback would apply.

peisummer · February 1998

Any info on Safari vans

dmccord · February 1998

What is the source of Edmunds' incentive information? Both Edmunds and AutoSite list the '98 Mazda Protege as having a $2,000 rebate. When I call Mazda headquarters and dealers in this and other states, they tell me it's only $1,500. Am I being misled? Is Edmunds' information wrong. Is this a regional promotion that isn't listed as one?

russia22 · February 1998

Car Man:

Thanks for the update regarding how often Edmunds updates the info.

I'm curious as to why the Nissan Maxima dealer incentive went away. Given the new Accord etc., and the fact that Miaximas don't seem to be selling well, this doesn't make sense. In fact, since the update, it appears Nissan has drastically cut back many dealer incentives.

Thoughts?

CarMan@Edmunds · February 1998

There is definitely dealer cash on the Nissan Maxima, Russia. Sometimes it takes a little while to collect all of the information on incentives and upload it to the Edmunds site. If I'm not mistaken, I believe that the Maxima Dealer cash this month is very similar to the amount that was offered last month. The new Nissan information should be up by this weekend. I hope this helps.

CarMan@Edmunds · February 1998

I'm not sure where AutoSite gets their incentives information, Dean. However, I can assure you that Edmunds uses an extremely reliable source for this information. Keep in mind that the collection of incentives information is not an exact science. It is a very time consuming and complex process. Many auto companies and dealers do not want the general public to know about these programs, especially the dealer cash. Manufacturers frequently have many different incentives programs running at the same time in different areas of the country. Furthermore, many manufacturers run regional enhancements to their national marketing programs. The specific Mazda program that you are speaking about is correct and effective in the Western region of the US.

CarMan@Edmunds · February 1998

Currently there is $500 consumer cash on the '98 Safari Cargo van and $1,000 on the Passenger and Conversion vans. Furthermore, there is an additional $500 dealer cash on the '98 Safari Cargo and $400 dealer cash on the '98 Conversion van.

AlfredS · February 1998

I am looking at the Olds Cutlass GL and the Buick Century. There are not any incentives posted to date. Does anyone have any information about rebates on either car in the near future (say March)?

kac · February 1998

any rebates, incentives, holdbacks etc. on the infinity 130t?

CarMan@Edmunds · February 1998

Alfred, there is currently $750 customer cash on the '97 Cutlass GL and $500 dealer cash on the '97 Buick Century. I am not aware of any special cash incentives on the '98 versions of these cars. However, there very well may be cash on the '98s in the near future. I think that this is going to be a huge year for cash incentives. Especially incentives on domestic cars which continue to lose market share. Also, I'm not sure if you wanted to purchase, finance, or lease your new car, but there are special financing and leases available on those models. Let me know if you want more details.

CarMan@Edmunds · February 1998

Yes there are special incentives currently running on the '98 Infiniti I30. Let me quickly clarify one thing first. The dealer holdback is not a type of incentive. Dealers get 1% of the car's MSRP (not including destination charges) back after they make the sale. This amount is not intended for consumers. In fact the dealers would prefer that consumers did not know about this amount, but sometimes they will dip into this amount in order to make a deal.

Currently Infiniti is offering 0% APR for 12 - 24 months, 2.9% for 36 months, 3.9% for 48 mo., & 4.9 % for 60 mo. There is also a special lease on the car, $399 for 36 mo. with a $500 down.

As far as cash goes there is $3,000 on the '97 I30 and $2,100 in the Northeast region on the '98 model. This cash can not be combined with the special lease or financing offers. Happy shopping.

labnerd · February 1998

Buying my first car ever. Fascinating experience. Looking at 98 corolla base model. I've noticed every Saturday in the car section one or two dealers advertise a very, very low price for a new car. I assume its always the most stripped down version there is. Good, that's what I want. But they always say "one at this price" I assume it's a teaser price to get you in the store. Is this price a good gauge for how low the dealer will go on the base model? Is there always one lucky early morning shopper who gets that price? Can I get to the front door 20 minutes before they open on the first day the ad runs in the paper and say, "give it to me"? Any help is appreciated.

CarMan@Edmunds · February 1998

You always have to be careful when reading newspaper ads that are run by individual dealerships, rather than the manufacturers themselves. Although there are dealers that often run legitimate advertisements, there are many dealers that run ads with misleading fine print or that try the old "bait and switch." This is when they advertise a specific model for a really low price just to get people into the showroom, however they never even had the intention of selling any cars at that price. The best thing that you can do is to look up the dealer invoice of the Corolla model that you want on our site and take out the dealer holdback. You should also take any applicable inventives off of the price as well, but in this case Toyota is not offering any on the Corolla. This will let you know exactly what the dealer paid for the car that you want. Try to work with that number allowing for a fair dealer profit. Good luck.

rexx · February 1998

Labnerd,

If you look at the fine print of some of those ads, you'll see a VIN # listed. If so, it probably means the car was already sold, prior to the ad coming out (or even being conceived). Dealers will often put up a previous sale in their advertisements. While, yes, they did sell THAT car for THAT amount, it fails to mention that they probably low-balled the customer on the trade-in, the car was a dealer demo, etc. In all honesty, you should ignore car ads. There's either a gimmick behind them or you can do better just negotiating the price yourself (using the information found on Edmunds or other publications).

8878 · February 1998

I'm trying to decide what kind of car to purchase I want a Mazada 626 but, my dad says that they are not good cars. Help me find a good car please.

CarMan@Edmunds · February 1998

If you are looking for specific information on cars, try looking in the Sedans Conference. Click here to go there: Sedans Conference I'm sure that they will be able to help you.

DennyT · February 1998

I live in St. Louis, MO and I saw on Edmund's rebate listing that the '98 Dodge Stratus has a $2,000 rebate. Does this apply to the Stratus ES in St. Louis, MO? Thanks.

CarMan@Edmunds · February 1998

The $2,000 rebate on the '98 Dodge Stratus that Edmunds lists is a national program, so it should be effective in St. Louis.

edlabut · February 1998

I am planning to buy a '98 Prizm. I have a GM Card rebate so I'm not considering Corolla. I know there currently is Not a rebate being offered. Is there a way to forecast if a rebate will be offered on the Prizm? Or is there a typical rebate season? What amount should I expect the rebate to be?

CarMan@Edmunds · February 1998

Ed, I believe that the Chevrolet Prizm was redone for the '98 model year. Usually manufacturers do not offer incentives on new models and cars that have had major changes right away. These models generally sell pretty well on there own and are not in great supply. As the '98 model year progresses, I'm sure that GM will have to offer some type of cash on this model. For the most part GM has some sort of cash on the majority of their cars (not trucks) right now, including '98s. Currently there is $1,500 consumer and $500 dealer cash on the '97 Prizm. Since GM generally changes their incentives every quarter (with minor revisions from month to month), I would look for an incentive on the '98 Prizm around the beginning of April. If not then, probably by the beginning of July.

Rebates, Incentives, APRs - Questions & Comments

Comments

Helpful Tools

Most popular vehicles