Looking at buying a new car. Are these rebates I am hearing about taken on MSRP or factory invoice or something else ?
They’re just $$. You make your best deal, the rebates are then subtracted from the agreed price.
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.
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.
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.
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.
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.