1) ...before taxes or after taxes?

2) ...dealer, instant, or mail-in?

For example, if I were to buy a GT at invoice at $28,620 with a $15,000 loan, would I be shelling out $13,620 down plus (5.0% x $28,500) in taxes, and receiving $4,000 in customer cash and bonus cash in the mail?

-Or-

Would I be shelling out $9,620 down plus (5.0% x $24,620) in taxes, and receiving nothing in the mail?

-Or-

Some variation between the two?

Just trying to get everything figured out before I go to the stealership.

Thanks in advance!

Dynasty

 

Also, taking the total interest paid over the course of a $15,000 loan into consideration, will the dealers go maybe $1,000 below their cost, and recoup it with the interest on the loan?

Dynasty

 

First off, the MAC money is only on left over 04 cars - not on 05s.

Second, $2500 of the MAC money means you have to finance xx% of the car with MAC (Someone can jump in the xx%). The MAC rates will be higher than you can probably get elsewhere, but the $2,500 makes it a better deal.

Third, $28.620 sounds about right for invoice on an 04 w/GT - but you can probably talk them down a bit lower - get into the holdback.

To answer your questions:

1) If you ask for the money back, then the rebates will be taxed and you will pay $28.620 (or whatever you can bargain down to) + tax on the whole amount (less credit for your trade, if your state does that). The amount you borrow will be the purchase price + tax - any down payment. Then you will get $4,000 in rebate checks back from Mazda - and have a lot higher car note

2) If you assign the rebates to the dealer, then they would take the $4,000 off the lowest negotiated price of the car. In most states you would still have to pay sales tax on the rebates - like using a "coupon" at the grocery. The dealer gets the $4,000 from Mazda since they sold you the car for $24,620 or less. You payments will be lower, but no checks in the mail to you.

The dealers do not normally get anything extra from the financing, that is Mazda making extra on the deal - unless the dealer gets you to sign at a really high interest rate. Say Mazda will offer you 6%, but the dealer tells you 8%. If you sign, then they just made extra money. If you insist on the lower rate, then they get nothing at all.

You SHOULD be able to get something off of invoice, it is Mid March of 05 and those 04 cars are OLD and been sitting there on the lot "forever" and need to be sold. I would figure on at least a few hundred below invoice less then rebates to be a good deal. Shop a several dealers to make sure they are giving you the "buy rate" on the financing. Dealer (A) may not come off invoice but offer you 6%, Dealer (B) may take $400 off of invoice, but then try to get you to sign for 8% money.

Dennis