Auto purchase- dealer incentives help

[TinkOhio]

I'm back and once again looking for advice from the friendly folks on the budget board.

Our car was totaled and we are about to buy a new one to replace it. In a nutshell, we have obtained preapproval for financing through our credit union at a great rate, but we are waiting for a hefty check from the insurance company to put down on the vehicle. We were expecting the check a couple of days ago. We found the car, which has been sold out in our area and had to be retrieved from another state. We also put down $500 as a good faith measure to hold the vehicle until the check came in. Our insurance agent said that if we don't have the check by today, he will issue a stop-payment on it and have a local agent just cut us a check. Today is the last day of the month! We were planning on taking advantage of July incentives and save an additional 1,750.

Obviously, the dealership wants us to pick it up today so that it goes towards their July sales. We don't want to loose the rebates, but it is unlikely that our bank will clear it today if we do receive it. What are our options? The dealership wants us to come in today, and we don't want to shuffle funds from savings to do that. Is there a way to find out what the August incentives will be? We don't want to be out the $1750, either.

Any advice is very appreciated!

 

[Sadie22]

Just withdraw the money from an account, get a bank check, and go buy the car.

 

[SandyinMonterey]

I don't see why they can't honor the July incentives even if you don't get that check today. Especially since you gave them $500. If deal falls thru, will they be returning that $500 to you? Do you have a receipt? Don't be too eager when dealing with them, they will know it and use that to their advantage. Make sure you know what you're paying for the car and not just what you're getting in incentives. Just because you're getting $1750 in incentives doesn't mean you're getting a good deal and more importantly a fair price. Good luck, I hope it all works out. Let us know.

 

[kirstenb1]

Just withdraw the money from an account, get a bank check, and go buy the car.

Agree. Sounds like you have the money, and will have a check to replace it within a couple of days. I wouldn't mess around and lose the July incentives. Am thinking maybe it's a 2014, since you mentioned it being already sold out where you live. If you mess around, you risk being forced to buy the 2015 to get the car you want. And I'm thinking it will be a while til incentives roll out on those.

 

[ajwolfe]

My dh works at a dealership....They may not necessarily know what the August incentives are going to be yet today. If it was me, I would switch my own money around and go ahead and purchase today. Most dealerships want to close out the month with strong numbers, so you may have gotten a better deal because of that and if you mess around too long that deal may disappear. Plus it also sounds like the car you want is not plentiful, so you may not get what you want in the end or have to take a newer model.

I agree though that you need to make sure you are getting a good deal regardless of the incentives and that they aren't taking advantage of your excitement over an incentive.

 

[Cupcakey78]

Are you required to put any money down with the pre-approval you received from your credit union?

I would purchase the car with your own money, and then when you receive the check pay yourself back or put it towards the principle of the car.

 

[MSLRAC]

I don't see why they can't honor the July incentives even if you don't get that check today. Especially since you gave them $500. If deal falls thru, will they be returning that $500 to you? Do you have a receipt? Don't be too eager when dealing with them, they will know it and use that to their advantage. Make sure you know what you're paying for the car and not just what you're getting in incentives. Just because you're getting $1750 in incentives doesn't mean you're getting a good deal and more importantly a fair price. Good luck, I hope it all works out. Let us know.

They can't honor the July incentive if the deal does not take place in July and the $500 has nothing to do with it. Incentives come from the manufacturer and their finance companies and each one of them has a very specific list of requirements that must be met in order for the dealership to be paid and the date of the deal is always a big one.

I would venture to say that the $500 was put down so that the dealership would locate the vehicle. Most places will not go after a hard to find or limited in quantity vehicle without some sort of deposit. It may or may not be refundable.

Anyway OP, I am the finance manager of a dealership and we do not have all of our August incentives yet. We have a couple because they are carry overs of a crappy July incentive but we don't have our big ones yet and there is no way to know at this point if they will be better or worse than this month's. So I would suggest that you do the deal today if you are able to but as others have said, make sure you are getting a good price on the vehicle and not getting hung up on the incentive aspect of it all.

 

[tinatark]

Is it the payment you are concerned about? You should call your CU and get them to adjust the payment when you get the lump sum - before your first payment. You will pay a few days interest.

Otherwise, shuffle your $$ around - use a credit card or savings $$ until you get the car insurance $$.

 

[SandyinMonterey]

My friend just got a new car. She couldn't find one locally so the dealership was able to locate her one. She didn't have to put any "good faith" money down and being that she couldn't take possession of the vehicle until after that months incentives expired, the dealership honored the incentive and the price of the car. Her car is a Jeep Cherokee.

 

[MSLRAC]

My friend just got a new car. She couldn't find one locally so the dealership was able to locate her one. She didn't have to put any "good faith" money down and being that she couldn't take possession of the vehicle until after that months incentives expired, the dealership honored the incentive and the price of the car. Her car is a Jeep Cherokee.

Not all dealerships require or request good faith money to locate a vehicle but many do. Did your friend sign the paperwork for the vehicle before taking possession of it? That's just about the only way that she could have still gotten the incentive after the expiration date.

 

[TinkOhio]

Thanks so much for the advice. We did end up taking the money out in order to take advantage of the incentives. The price we had found before adding the incentives was fantastic. We didn't want to lose the opportunity to have the incentives coupled with the great price.

 

[Nztara]

Sounds like you made the right decision for you. Ultimately, that's what it is all about. As a PP said, if the manufacturer has expiration dates on incentives and if paperwork is not signed by that date, the manufacturer will not honor the incentive.

Dealerships actually have the financial burden of waiting to receive the incentive money while the customer gets the incentive credit the day they purchase. It works well for the customer.

I also second that if a dealership is close to meeting a sales goal for the month, you may get a really great deal at the end of the month. It is beneficial for all parties involved.

 

[SandyinMonterey]

No, she did not sign anything until the dealership got the car and she was able to pick it up herself.

 

[MSLRAC]

No, she did not sign anything until the dealership got the car and she was able to pick it up herself.

Not sure how she manage that one but it is not the norm.

Congrats on your purchase OP! Glad you got what you wanted and got a good deal!