Car Rebates & Dealer Incentives
It's important to know exactly what new car rebates and hidden dealer incentives are out there for your particular new car. These can vary widely by region, make, model, time of year, and car color. The manufacturers make this money available to
Objectives:
1. Gather specific details on special pricing
2. Well-organized information to present to competing dealers
Advantages:
1. Maximizes your savings from all types of rebates
2. Factory-to-dealer incentives are always valuable, but hidden from consumers
Action Items:
1. Get printed copy of all published rebates from websites
2. Get online report of hidden incentives from CarDeals
Time required:
1. Get rebates and incentives details - 15 minutes
Overview
Step 4 is one of the trickiest steps in the new car buying process. Your
mission, should you decide to accept, is to ferret out all hidden pricing on
your new car choice.
Proper completion of this phase can save you thousands of dollars on certain
models. Special pricing varies widely between manufacturers, models, and time of
the year. You’ll discover the secrets to finding out about these significant
discounts:
- Factory to Dealer Incentives
- Factory to Consumer Incentives
- Dealer Holdback Fund
- Special Financing Offers
- Hidden Special Model Incentives
- Short-Term Rebate Programs
- Dealer Monthly, Quarterly, and Annual Sales Volume Bonuses
You’ll also learn that in many cases, the “dealer invoice price” isn’t always
the lowest price you can get.
Here’s how it works. When a new car is sold, the dealer gets some really large
reimbursements from the manufacturer:
- Holdback Fund: 3% of List Price (not invoice price)
- Floor Plan Charges: 2% of Invoice Price
- Advertising Fund: 2% of Invoice Price
- Dealer Incentives: 3% of List Price (much more on slow movers)
- Fees Collected: 1% of Invoice Price
So, dealer invoice pricing is already inflated by roughly 10%.
As always, great incentives are out there. You just have to know where to find
them.
Next: New Car Rebate Sites