It Might be Time to Buy a New Car
Some Auto Manufacturers are Discounting
You’re a very lucky person if you haven’t bought a new car in the past 3 years; Because, if you did, you paid too much, had to wait too long too to get the car, and weren’t able to precisely buy the car you wanted. Covid and post-Covid have wreaked havoc on the World economy, particularly the price of new cars. Supply is gradually catching up with demand. Manufacturers are building more new cars than they have since 2021, and buyers’ demand is being mitigated by higher interest rates and overall inflation.
Those manufacturers with more manufacturing capacity are beginning to advertise discounts directly to their retail customers. This is known in the trade as “customer cash”. Manufacturers are also beginning to offer discounts to their dealers, and this is called “dealer cash”. The dealers always prefer dealer cash because that goes directly into their pockets and, most importantly, the retail customer doesn’t know about dealer cash.
For example, as I write this column, Jeep is offering $4,000 discounts directly to the retail customers on some new Jeep models. The problem is that most Jeep buyers don’t know about this offer and when they buy the Jeep, the Jeep dealer does not tell the buyer about the Jeep manufacturer’s discount. When signing the large amount of paperwork associated with every car purchase, the customer unknowingly signs a document “Assigning all Jeep manufacturer cash rebates to the Jeep dealer”. This way, the Jeep dealer converts your intended $4,000 cash back into $4,000 profit for himself, the Jeep dealer.
The way not to be taken advantage of is to go directly to the Manufacturer’s website and discover the customer cash discounts yourself before you contact the dealer. Then, shop and compare prices with several Jeep dealers on the Jeep you chose online at www.Jeep.com. Go to the Jeep dealer that gave you the lowest out-the-door price and get a signed vehicle buyer’s order before you disclose that you will be applying for the $4,000 cashback from Jeep, Inc. (). Of course, this works with new car and the information is available to you online.
Before you disclose to the salesman and sales manager that you have knowledge of the cashback offer from Jeep, be sure you have a new vehicle buyer’s order filled out, signed by an authorized person in the dealership. You will probably have signed a dealer worksheet before you’re presented with the vehicle buyer’s order. A WORKSHEET IS NOT A LEGAL DOCUMENT. Also, be sure you don’t sign any document assigning your cash rebate back to the dealer.