# Sales Rebate on new car

**URL:** <https://community.cartalk.com/t/sales-rebate-on-new-car/20872>\
**Category:** Maintenance/Repairs\
**Created:** [October 18, 2008, 5:20pm UTC](https://community.cartalk.com/t/sales-rebate-on-new-car/20872 "2008-10-18T17:20:08Z")\
**Posts on this page:** 7\
**Page:** 1

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**Author:** ![raycharles](https://avatars.discourse-cdn.com/v4/letter/r/6bbea6/32.png) [@raycharles](https://community.cartalk.com/u/raycharles)\
**Post date:** [October 18, 2008, 5:20pm UTC](https://community.cartalk.com/t/sales-rebate-on-new-car/20872/1 "2008-10-18T17:20:08Z")

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

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**Author:** ![texases](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/texases/32/862_2.png) [@texases](https://community.cartalk.com/u/texases)\
**Post date:** [October 18, 2008, 8:03pm UTC](https://community.cartalk.com/t/sales-rebate-on-new-car/20872/2 "2008-10-18T20:03:55Z")

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

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**Author:** ![jtsanders](https://avatars.discourse-cdn.com/v4/letter/j/c2a13f/32.png) [@jtsanders](https://community.cartalk.com/u/jtsanders)\
**Post date:** [October 19, 2008, 11:33pm UTC](https://community.cartalk.com/t/sales-rebate-on-new-car/20872/3 "2008-10-19T23:33:04Z")

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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.

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**Author:** ![mcparadise](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/mcparadise/32/32_2.png) [@mcparadise](https://community.cartalk.com/u/mcparadise)\
**Post date:** [October 19, 2008, 11:39pm UTC](https://community.cartalk.com/t/sales-rebate-on-new-car/20872/4 "2008-10-19T23:39:23Z")

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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.

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**Author:** ![pleasedodgevan](https://avatars.discourse-cdn.com/v4/letter/p/51bf81/32.png) [@pleasedodgevan](https://community.cartalk.com/u/pleasedodgevan)\
**Post date:** [October 20, 2008, 1:29am UTC](https://community.cartalk.com/t/sales-rebate-on-new-car/20872/5 "2008-10-20T01:29:27Z")

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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.

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**Author:** ![MikeInNH](https://avatars.discourse-cdn.com/v4/letter/m/a587f6/32.png) [@MikeInNH](https://community.cartalk.com/u/MikeInNH)\
**Post date:** [October 20, 2008, 1:01pm UTC](https://community.cartalk.com/t/sales-rebate-on-new-car/20872/6 "2008-10-20T13:01:03Z")

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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.

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**Author:** ![FoDaddy](https://sea1.discourse-cdn.com/cartalk/user_avatar/community.cartalk.com/fodaddy/32/717_2.png) [@FoDaddy](https://community.cartalk.com/u/FoDaddy)\
**Post date:** [October 20, 2008, 1:09pm UTC](https://community.cartalk.com/t/sales-rebate-on-new-car/20872/7 "2008-10-20T13:09:14Z")

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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.