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What are Factory-to-Consumer incentives?

In an effort to stimulate sales, many manufacturers will offer incentives to the consumer (you). These incentives are commonly advertised in the media and can consist of low rate financing/leasing rates, such as 0%, cash rebates, such as $2,000, or a combination of both. If a manufacturer is offering you 0% or $2,000 cash, the emphasis is on OR; which means that you cannot get 0% financing and $2,000. You have to decide between the two. In some cases, you can combine the 0% and $2,000, but not very often. What is MSRP? What is Dealer Invoice Price? What is Holdback? What is the maximum dealer margin/profit? What is the actual dealer margin/profit?
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One Response to “What are Factory-to-Consumer incentives?”

  1. Canadian New Car Buying Tips & Advice « Carcostcanada Carcostcanada says:
    October 24, 2012 at 10:50 am
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    [...] all other expenses, with the final balance representing the actual net profit to the dealership. Factory-to-consumer incentives – In an effort to stimulate sales, many manufacturers will offer incentives to the consumer [...]