Helen asks…
Can you change new car dealer incentives after signing?
I recently purchased a new vehicle and decided to take the lower interest incentive instead of the cash back incentive. Is it possible to switch to the cash back option incentive after I have already signed the contract for the lower interest rate incentive?
CSC101 Customer Service answers:
Signed contract is a legal document. The amount of money it would take to break it would be 10 times any difference you are trying to gain.
Lean the lesson….never sign anything till you are 100% sure….never sign on the spot, always give yourself a minimum of 48 hours of thinking prior to signing anything, no matter what it is.
Lesson learned.
Carol asks…
Where does the “CASH BACK” come from? ( When you buya new car).?
If I pay $3,000.00 down on a $35,000.00 car and the dealer advertises a $10,000.00 CASH BACK. Say I do actually get the CASH BACK. Where does it come from? Do I pay interest on it? Is it a loan? The dealer did not call it a loan.It was an incentive for me to purchase?
CSC101 Customer Service answers:
It’s an incentive to get you to buy the car. It reduces the price of the car. Most of the time, at least part of the funds come from the manufacturer.
Occasionally the dealer is expected to “participate” in the offer. For example, a $1,000.00 rebate may be advertised. The manufacturer puts up $750.00 and expects the dealer to contribute $250.00.
Also, many manufacturers’ finance arms (GMAC, Ford Credit, etc.) will offer rebates to entice you to take their financing. This is often not a great deal though as they will virtually always charge a higher interest rate as a result. I recently bought a new car and the dealer offered an additional $1,000.00 rebate if I financed it through Ford Credit. The interest rate was 8.5%, where I could qualify for a 5.5% loan from my credit union. Even with the rebate, the 5.5% loan from the credit union was a better deal. So, I took the rebate and refinanced the loan with my credit union when the first payment came due! They hate it when you do that, but it’s all perfectly legal!
Sandra asks…
How do I know I’m getting a good deal on a new car?
I’m looking at buying a new 2009 Nissan Rogue. It’s going to be fully loaded, here’s a list of the features:
AWD Premium Package (includes Xenon Headlights); Leather package; Portable Navigation system; Rear spoiler; Bumper guard; Floor mats (yes, that’s extra according to their website); Moonroof; Roof rails w/ crossbars; Splash Guards; Chrome Grille; Cargo cover; a Pin Stripe and then the other standard features including XM radio; Cruise Control; Power windows & locks; keyless ignition; ABS; Garage door opener; Bluetooth; steering wheel controls; and the list goes on.
They are also including some special paint job that keeps scratches from rusting or something like that. I don’t see that feature on their website nor on edmunds.com but it’s got a sticker price of $800ish.
According to the sticker price on the lot, it’s $31.5k. Trying to build the same car on the website comes out to $30.5k but I can’t add the pin stripe and paint protection thing (which on the sticker equals about $1k). After emphasizing the lack of need for certain features (navigation, pin stripe, splash guards, chrome grille) and emphasizing the need to try to keep this within a budget, they broke it down to… ::drumroll:: $26.5k.
According to edmunds.com: the Invoice price (without the pin stripe and paint protection) is $27.8k and “what others are paying” is $28.4k
With all that said and comparing it to edmunds, it seems like a good deal. I believe this $26.5k price already includes the $750 cash back incentive and it comes with 2.9% financing.
All in all, I believe this is a good deal but being my first NEW car where I can negotiate, I want to make sure I got it to a reasonable price. I think I did but I’d like others opinions. I apologize for the long question but leaving out one detail can reflect a big price difference.
Thanks!
I forgot to mention, it is the SL model.
According to KBB: New Car Blue Book Value= $29k; Invoice=$27.8k; MSRP=$29.7
Nada.com: Invoice=$27.8k and MSRP=$30.3k
After all this, it appears I’m getting an offer below the invoice price. With 2.9% financing and putting about 10% down, the monthly payments will be somewhere in the $425/mo range.
CSC101 Customer Service answers:
The pin stripe cost $50 the car comes from the factory with the paint protection. I would ask for a copy of the invoice and offer $200 to $500 over the invoice less the rebates plus tax and tag do not pay a dealer fee.
Courtesy of Y!Answers