Sales Rebate on new car

#1

Looking at buying a new car. Are these rebates I am hearing about taken on MSRP or factory invoice or something else ?

#2

They’re just $$. You make your best deal, the rebates are then subtracted from the agreed price.

#3

And they are subtracted after taxes. You pay the full negotiated price and then they reduce that price, plus taxes, by your rebate. If, on the other hand, it is a dealer rebate, you do not pay taxes on the full value.

#4

It’s all just a numbers game. The only thing you need to worry about is the bottom line. How much will you pay? That’s what matters, the rest is just terminology.

#5

You decide what you want to pay for the car and then subtract the rebate if it is a factory rebate. Then you are ready for your final offer. Think big and you might get it. It’s only the final price that counts.

#6

Be CAREFUL. Many of these dealers will INCLUDE the rebates as part of the sale. You think you’re getting a GREAT deal…but in actuality it’s NOT that great.

#7

Agreed, when I sold cars, I never once mentioned any rebates. Come to think of it I never had a customer mention anything about them either. I guess they assumed that the rebates were already reflected in the numbers that were being drawn up.