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'06 theoretically off the incentive bandwagon.... Posted by Mike Lynch [Email] (#81) [Profile/Gallery] (more from Mike Lynch) on Fri, 19 Aug 2005 10:20:26 In Reply to: Re: You pay what we pay is indeed true...., Dan in NY, Fri, 19 Aug 2005 04:12:49 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Reducing the '06 prices is designed to bring the actual transaction price closer to the list price. That is instead of having list prices comparable to BMW, Benz and Audi, and then giving big incentive or rebates and GM pricing, Saab and GM too are just gonna' lower the price and then not have big icentives. I say theoretically, because the new "Total Value Promise" which is what GM is calling the new lower pricing, doesn't exclude incentives or rebates.
When you purchase at GM Employee pricing, the dealer is required to give you any applicable incentive at the time. '06s 9-3's are out and the prices are $1,000 to over $4,000 lower and/or the standard equipment has gone way up and there aren't any incentives or rebates. I assume the same will be true of '06 9-5s, but the pricing and the cars won't come until much closer to the first of the year.
One note, Saab usually gives the dealer any incentive privately so the dealer can deduct it from the selling price before tax is computed. For GM Employees "dealer incentives revert to consumer rebates" as a matter of GM policy which means the price is taxed first and then the incentive is given as a rebate on the down payment or drive off line. Techinically a "rebate" is a public thing and is thus taxable, whereas an "incentive" is a private thing, not advertised, and can be deducted pre tax.
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