2003-2011 [Subscribe to Daily Digest] |
 | [Main 93 Bulletin Board | BBFAQ |
Prev by Date | Next by Date | Post Followup ]
Member Login / Signup - Members see fewer ads. - Latest Member Gallery Photos
Rebates vs incentives.. Posted by Mike Lynch [Email]  (#81) [Profile/Gallery]
(more from Mike Lynch) on Mon, 28 Jan 2008 20:32:56
In Reply to: Re: What is Marketing Support...?, CWilson, Fri, 25 Jan 2008 12:20:30 Members do not see ads below this line. - Help Keep This Site Online - Signup |
A rebate is taxable and is given to the consumer after the tax has been calculated on the down payment line. $30k car, $5k rebate, net price $25k, but tax computed on the $30k. Or with a lease the $5k goes towards the drive offs. If the rebate is more than the drive offs (1st, deposit and license) than the balance becomes a cap reduction (lease down payment) and is taxed.
An incentive, or marketing support, or dealer incentive, is taken off before tax. $30k car, $5k incentive, net price $25k and actual selling price or cap cost for a lease is $25k to figure the tax on.
IIRC, because I'm not in the Saab biz these days, Owner Loyalty is always a rebate.
If a dealer isn't forthcoming about the actual incentives and rebates, even though the incentives are private incentives to the dealer, then maybe your dealer isn't being upfront about other things as well. Ask here on these BB for the current incentives for your model of interest as well as your method of purchase. And be advised your Saab dealer isn't playing stupid when they give you the look when you ask, it's really complicated and tricky with different incentives for each different model and method of payment, so bear with them and sort through it. Saab doesn't make it easy I think on purpose, but you're a Saab buyer so there's a very good chance you're smarter than average.
Separate the incentives and rebates from the discount from MSRP, the factory sticker on every car. Beware of dubious add ons to the MSRP, theft protection schemes, paint protection and other stuff that's not a "hard add" or actual useful equipment. There's the gap between invoice and MSRP, which is not near as big as most people figure. And then there's the incentives that affect that, keep the two straight somehow.
Happy hunting!
, Mon, 28 Jan 2008 20:32:56 <-- Viewing This Message
No Site Registration is Required to Post - Site Membership is optional (Member Features List), but helps to keep the site online
for all Saabers. If the site helps you, please consider helping the site by becoming a member.
 |
 |
 |
 |
 |
