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How do rebates change as the model year progresses?

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Old Feb 18, 2010 | 08:18 PM
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Default How do rebates change as the model year progresses?

First of all, this is a great forum. I recently asked a few questions before placing an order for a new Super Crew, and I got a lot of helpful responses. I find that I can search the forum and find answers to most of my questions without even having to ask them.

Anyway, I placed my order earlier this week, and the current rebate in my area - up to $4K - is valid through April 5. My dealer claims that order turnaround times have been around one month. What can I expect, though, if my truck doesn't come in before April 5?

1) It's spring and demand is going up, so the rebate is going down.

2) It's later in the model year, so the rebate will stay the same or get better.

3) There isn't a historic trend - it depends on the economy, dealer inventory, and all sorts of other factors.

Finally, I suspect that dealers might learn about the new rebates before the old rebates expire. If my truck comes in on March 31, for instance, will the dealer work with me to determine whether I should hurry up and seal the deal or wait for the new incentives?

Thanks again!
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Old Feb 18, 2010 | 08:36 PM
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Incentives were used for manufacturers as an aid in moving inventory. They needed to keep moving cars off lots because they kept building cars, more than was needed.

Historically, days supply was at 60-90 days which is not good. The upheaval of last year has put the days supply of Detroit 3 down to 50-60 days which is much better. GM has dropped incentives $2,500 per car down to $3,900 in December 2009 vs December 2008.

So, bottom line is that incentives for us consumers will not work the same way they have in the past. They will be less. The manufacturers will not need as many incentives to move cars because they will be maintaining a more realistic supply.

Read a great article on this subject in Automotive News:

http://www.autonews.com/apps/pbcs.dl...IL03/302089951
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Old Feb 19, 2010 | 09:46 AM
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it all depends on the market. john makes a good point & his article is pretty interesting. some areas get better deals than others, it's pretty much based on inventory & where it's sitting. dealers get the hold back (think it's called) fee where they are paid by the mfr to keep & maintain the car while it's on the lot. it's a 1 time lump sum for about 60 days worth of storage. dealer sells under 60, the difference is profit. over 60, it's costing the dealer to have it around. model year closeout is nice but waiting towards the end gets you the best deals but slim pickings on color & desired options.
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Old Feb 19, 2010 | 10:28 AM
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I think you should be given the rebates that were in place when the truck was ordered. But the dealership and Ford probably don't care what I think.
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Old Feb 19, 2010 | 10:31 AM
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Originally Posted by MarkY
I think you should be given the rebates that were in place when the truck was ordered.
Unless the rebate is then more when you pick up the truck?
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