PRICING (Page 3)
- Special Finance - This is covered in more detail in our finance section, but we'll briefly touch on this topic here. The special finance interest rates are usually offered by the manufacturer's finance company (such as Honda, Chrysler and Volkswagen Finance). These rates will have certain stipulations that the finance company will require to qualify for these said rates. These rates are usually better than most banks & credit unions can offer, making the purchase of the new car more tantalizing to a consumer. Usually the special interest rates and factory rebates can not be combined.
- Dealer Cash - This is never a guarantee to the dealer and generally this applies only to new car purchases. The dealer often must reach certain criteria to qualify for these additional cash incentives.
For example:
- If the dealer sells 20 new vehicles that month they may receive an additional $300 per car sold, this does is not designated for the consumer and isn't offered as a "rebate". If the said dealer sells, let's say, 40+ units the dealer cash might go up to $500 per vehicle. This reflects a specific "tier level" designated by the manufacturer. The manufacturer alone determines how much dealer cash will be available to the dealer. Often times, the "dealer cash" will only apply on one model line of the manufactures product. The amount may vary from model to model. Again, the consumer is not entitled to this money. It's the dealer's discretion to use portions of this money (IF, there is any available) to help put a deal together. Usually that will be the last week of the month, as management knows what "tier levels" a deal may make toward a monthly objective.
- Dealer Hold Back - This is only available on new vehicles from the manufacturer. This is a small percentage of the dealer's invoice that goes to the dealer after the vehicle is sold. This helps with the dealers cost of operations.
- A quick personal note: any consumer naturally wants to save as much money as they possibly can, but understand that as in any business, it's no small expense to operate a dealership, big or small. Just like you, they also must pay bills and expenses; electric, phone, utilities, insurance, salary, service, parts, advertisement, insurances and so forth. The dealer has to, and should, make a fair profit to upkeep their operations and employees. Otherwise, they wouldn't be in business at all to offer you their services and products. If you believe other wise than you're being unrealistic. It isn't uncommon for consumers to have unrealistic expectations for a potential deal that a dealer can't make. Again, another reason you need to be informed. With that said, that money is available to the dealer to potentially utilize when working a potential deal. A good dealership's management staff will never let someone leave because of price if they know they can make the deal right then and there, and especially if the potential buyer can and will make the purchase. They're not going to pass that deal.ever.
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