Turbo2Go Posted June 6, 2006 Share Posted June 6, 2006 I noticed a dealer advertising a "Customer Cash (Rebate)" in addition to "Dealer Cash". What is the difference between the two? Also, are taxes calculated before or after these discounts subtracted from the purchase price? Link to comment Share on other sites More sharing options...
bruin Posted June 6, 2006 Share Posted June 6, 2006 Customer Cash Rebate - Lets say there is a car for sale for $30000, with a $1500 rebate. If you decide to actually buy the car, the purchase price is $30,000, and the manufacturer actually will send a rebate of $1500. As the manufacturer sends the rebate to the dealer, the dealer considers this as part of your downpayment for convenience reasons. I believe you can actually have the manufacturer mail you the $1500 rebate if you so chose. Dealer Cash - If you buy a car for $30000 and there is $1500 dealer cash, you pay $30000, and the manufacturer gives the dealer $1500. The benefit to you in this case is if the dealer knows he is getting $1500 for every car he sells, he should be willing to negotiate the selling price of the car for $1500 less than he normally would, so you could theoretically easily negotiate the selling price of $28500. Regarding taxes - It varies by the state you live in. In CA in a customer cash rebate, you are required to pay taxes on the pre-rebate purchase price (in this case $30,000). In a dealer cash scenario, you pay taxes on what you negotiate the final purchase price of the car to be. Hope that helps. Link to comment Share on other sites More sharing options...
warrtalon Posted June 6, 2006 Share Posted June 6, 2006 Also, the current rebate is $1500 for the LGT, but I think the dealer cash is $500. They don't have to give you the dealer cash and don't even have to mention it. My local dealer included it automatically in my purchase price. I even asked if that's where the extra 500 came from, and he confirmed. The other quotes I got elsewhere did NOT include it, and when I asked if they would, they said "no, sorry." Link to comment Share on other sites More sharing options...
Terrain.org Posted June 6, 2006 Share Posted June 6, 2006 In Arizona, you pay tax on the final price, which is minus any rebates or incentives. So, with $1,500 rebate plus $500 dealer cash, you'd pay tax on $28,000 instead of $30,000 because your purchase price is $28,000. They get you any way they can in California, eh?! Link to comment Share on other sites More sharing options...
chenc544 Posted June 6, 2006 Share Posted June 6, 2006 In CO you paid tax on the rebate too. Like the previous post says the dealer/State consider it as part of your down payment. On the other hand in CO you don't pay tax on your trade-in value, while in CA you do. Warrtalon - did you end up buying your wagon from Heuberger? Link to comment Share on other sites More sharing options...
RacingFish Posted June 8, 2006 Share Posted June 8, 2006 they might get em in california but it seems like car prices are cheaper over there anyways. Link to comment Share on other sites More sharing options...
Turbo2Go Posted June 8, 2006 Author Share Posted June 8, 2006 Thanks for the info. guys! Link to comment Share on other sites More sharing options...
warrtalon Posted June 15, 2006 Share Posted June 15, 2006 Warrtalon - did you end up buying your wagon from Heuberger? No, they only had a red one, and my wife doesn't want red. They didn't put much effort into sourcing me a black one from elsewhere, and they wouldn't give me anywhere near the TRADE-IN value of my Lexus. All I wanted was trade-in value, but they offered way less. A little less would have been fine, but this was 4k below NADA value... Link to comment Share on other sites More sharing options...
zhemel Posted June 25, 2006 Share Posted June 25, 2006 Warrtalon you have a evo and your in the subi forum? cant get enough attention? Link to comment Share on other sites More sharing options...
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