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Old 10-31-2014, 11:59 AM
 
Location: SF Bay Area
13,349 posts, read 16,564,811 times
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Quote:
Originally Posted by lenny2412 View Post
That is what I am thinking would happen. They will sell it to others at sticker - rebate since it is a fairly popular model. I understand this is the best time of the year to buy new while they are clearing out the old model year so debating whether to jump on it now while the rebate was going on or wait until the end of next month (assuming there are any left by then). The original plan was to buy used somewhere down the line but if I could get a new car at a couple grand more than a used car with low miles then it might be worth buying new if this is really a good deal.

I'm curious to which Chevy model you are looking at that's so popular that it's selling at sticker YET there is a cash rebate incentive.
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Old 10-31-2014, 12:08 PM
 
Location: Houston, TX
2,052 posts, read 4,297,771 times
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Just talk to them and see what deal they can make. Usually a cash back is independant of the dealer's discounts, or may not be available with the cut rate financing. We've have local dealers giving $13-15K off new Silverados, about $7-9K is rebates and manufacturer incentives and the rest is dealer discounts.
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Old 10-31-2014, 12:12 PM
 
Location: East TX
2,085 posts, read 1,830,148 times
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"Cashback" - or rebates - are completely and absolutely separate from whatever deal you can negotiate with the dealer.

Dealer pays an amount for the car, which is "invoice". The put a window sticker on the car, often referred to as "sticker". The difference is markup. You can usually buy the car at or near "invoice" price which is readily found online. The rebate from the manufacturer can then be reduced from that amount since it is not reducing what the dealer receives, it is an incentive from the manufacturer to the buyer.

As far as attempting to negotiate below "invoice" or getting into the dealers incentive money, referred to as "holdback", that is up to the dealer. They are offered incentives and reductions in the interest they pay on their inventory based on how many cars they sell. If they wish to dip into those incentives, it is their prerogative. In reality, the profit margins for a dealer on a new car are junk. Most of us would never run a business for those margins. The new car franchise only provides a forum for the dealer to make more money on service and used vehicles in most cases.

I have purchased several brand new cars in mere minutes by simply offering invoice minus any rebates. It takes the stress out of the equation, allows the dealer to retain whatever incentives they have earned from the manufacturer, and is a better deal than Consumer Reports says I should be able to get in most cases.
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Old 10-31-2014, 12:46 PM
 
Location: Raleigh
7,057 posts, read 5,238,998 times
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Quote:
Originally Posted by lenny2412 View Post
Chevy is offering $2000 "cash back" deal on certain vehicles. Common sense tells me that you buy a car and they send you a check for $2000 (and they take out the taxes).That seems to me to be too good to be true. If you buy within now and next week, you get that much of a discount? Or does the dealership raise the sticker price of the vehicle to make up for the "cash back"? I'm thinking there has to be a catch somewhere.
Dealerships can't raise the sticker price. Its set on the Monroney sticker by the factory. Now, a car made in June of 2014 and a car made in January of 2015 might both be 2015's, and have a different sticker price, but the manufacturer would adjust that as the production runs change.

To answer your question, its merely a manufacturer rebate. You could, if you desired, get the rebate sent to you, or you could lump it into the deal. Most customers chose to apply it to the deal. I never once saw a customer that chose to have the check sent to them. At a one price store, the price will reflect all available rebates.

The stores will negotiate price based on what the market bears; manufacturers rebates don't really affect their pricing. Smart shoppers will know what the area stores are willing to let the car go for. Stores will generally factor in manufacturers discounts/rebates when quoting pricing. The more upfront ones will be straightforward about it; sticker price of $20,000-$1000 store discount -$2000 GM Cashback= $17,000.
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Old 10-31-2014, 12:47 PM
 
Location: Hougary, Texberta
7,914 posts, read 10,397,037 times
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Quote:
Originally Posted by jaypee View Post
I'm curious to which Chevy model you are looking at that's so popular that it's selling at sticker YET there is a cash rebate incentive.
That's not what he's saying. There's an incentive on the vehicle for year end model clear out, and because it's popular, an uninformed buyer will simply take the incentive discount off of a sticker price and think they're getting a deal. Rather than negotiating a better price and stacking the incentive on top of that.
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Old 10-31-2014, 12:49 PM
 
Location: Raleigh
7,057 posts, read 5,238,998 times
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Quote:
Originally Posted by Rynldsbr View Post
"Cashback" - or rebates - are completely and absolutely separate from whatever deal you can negotiate with the dealer.

Dealer pays an amount for the car, which is "invoice". The put a window sticker on the car, often referred to as "sticker".
It should be noted that the dealer doesn't put the sticker on the car. The manufacturer does. The same car will have the same sticker price across town, provided the options and manufacturing date were the same.
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Old 10-31-2014, 01:20 PM
 
Location: Birmingham
11,790 posts, read 12,673,488 times
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Maybe he is referring to an addendum sticker.

Dealers can add accessories or additional markup via addendums that they print and are usually stuck on the window next to the original manufacturer's sticker.
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Old 10-31-2014, 01:54 PM
 
51 posts, read 38,425 times
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Thanks all for the information. I think I will go talk to the dealer and see what they have available. Would there be an any advantage to going tonight instead of tomorrow? Tonight is Halloween and the weather is bad so they will likely be slow...and it's the end of the month. Would they be more willing to mark down a car under these circumstances or would it not matter? I'd prefer to go tomorrow but could go tonight if it means a better deal. I'm not really desperate to buy right now but I'm thinking this might be the best chance of getting a good deal until on a new car until next fall (and who knows if my current car will last until then).

The original plan was to buy a used car when the current car runs its course but if I can get a great deal on a new car with a warranty for not much more than a used car then I think I would prefer to go new.
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Old 10-31-2014, 02:03 PM
 
Location: East TX
2,085 posts, read 1,830,148 times
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Today versus tomorrow may not be a big difference in price unless a "rebate" ends at the end of the month, being today. On a different note, you may be more likely to get a less aggressive salesman on a Friday night for a couple reasons.
1. In my experience, Friday night most dealerships expect to see tire kickers and there are usually less sales staff on hand. Less competition.
2. Saturdays, many dealers will offer incentives to the sales staff to turn up the heat on the weekend buyers. Every sales person is usually required to work on Saturday, so there will be more competition and less likely to have a relaxed buying experience.

May or may not be a big deal.
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Old 10-31-2014, 02:04 PM
 
Location: North Beach, MD on the Chesapeake
32,176 posts, read 39,325,128 times
Reputation: 40695
Tonight might be better.

But remember, they aren't going to sell you a car and lose money on it. As a note, I bought a new F150 at the end of January. Ended up with an $8000 rebate on it. Some of it was manufacturer while some was dealer (7 and 1). There was another $1000 if I went with Ford Credit but the interest rate for that was a point higher (2.99) than Wells Fargo (1.99).

The dealer was happy and I was happy.

A note: some states will require the sales tax be applied to the MSRP and not what you actually paid. MD is one such which does.
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