In newspaper car ads there’s sometimes a 1000 dollar discount for ‘owner loyalty’. What does that mean?
Thanks…Kent Bell
It means that you are supposed to already own a car/truck from that company… Its a discount that is supposed to apply to repeat customers (not necessarily the same dealership, just same manufacturer).
It is a rebate that applies to the same manufacturer. I have a 1998 Buick Regal that qualified me for a loyalty rebate on my 2003 Olds Silhouette. I also got an additional rebate for switching from a Ford Windstar to the Olds. The General was anxious to sell Silhouettes that year!
BTW, the rebate is applied after all taxes , tags, and other fees are applied.
The above statements are all true, but it indicates a willingness on the part of the dealer to knock $1000 off the MSRP for no particular reason at all. Buyers who do not truly qualify for the loyalty rebate may possibly get the same discount merely by negotiation. Can’t hurt to try.
If it is a dealer rebate or discount, it only gets you closer to the invoice price without negotiation. You can typically negotiate a lower price beyond the loyalty discount. Are you interested in a specific car, or is this just one of life’s little mysteries? Tell us which car and we can help you figure out what a reasonable purchase price is.
It just means that you should negotiate for that 1000 additional dollars off because you will be overcharged otherwise. It could also be a fake discount for poor negotiators who bought the same brand of car before. Can’t always tell who is getting cheated.