what might if a car dealership is awarded a bonus by the manufacturer course hereo

How do manufacturers determine automaker-to-dealer incentives?

Generally speaking, there are at least three criteria manufacturers use to determine automaker-to-dealer incentives: regional inventory, dealer inventory, and the most controversial, stair-step. The strategy varies from automaker-to-automaker, but don’t expect a hot-selling crossover SUV, for example, to be offered with these additional rebates.

Should you focus only on ‘the deal’ when buying a new car?

“Again, by focusing only on ‘the deal’, a buyer may be giving up other benefits of a new car purchase such as (dealer) location, service reputation, a relationship with the dealership. If you have a trade in, each dealer will approach that differently as well.”

Are dealer payments to manufacturers considered wages?

Thus the payments are not wages (Rev Ruling 70-337). These payments, whether paid directly by the manufacturer or through the dealer, are taxable but not subject to federal withholding tax or FICA (IRS Publication 3204).

How do I negotiate a car dealership price?

Simply, negotiating a price at the beginning of the month and then returning to that dealer at the end of the month to renegotiate the price for that same, exact model could result in significant savings.

What are the criteria used to determine automaker to dealer incentives?

Generally speaking, there are at least three criteria manufacturers use to determine automaker-to-dealer incentives: regional inventory, dealer inventory, and the most controversial, stair-step. The strategy varies from automaker-to-automaker, but don’t expect a hot-selling crossover SUV , for example, to be offered with these additional rebates.

Why do automakers give incentives?

Automakers sometimes add unpublicized automaker-to-dealer incentives during the month to sweeten retail deals and push slow-selling models. This incentive is in addition to any national and regional retail rebates that are advertised. Generally speaking, there are at least three criteria manufacturers use to determine automaker-to-dealer ...

What is conditional automaker to dealer incentive?

The automaker will select the model or models by VIN on each dealer’s lot that will receive the conditional automaker-to-dealer incentive. If there are two or more identical models at the dealership with the same optional equipment only the model with the specific VIN will be eligible for the automaker-to-dealer incentive.

Why are conditional cash incentives called conditional cash?

Automaker-to-dealer incentives also are known as conditional cash because the dealer may or may not apply all or a portion to sweeten a deal. These incentives are not publicized so a customer has a difficult if not impossible time determining how much if any additional money is available to them. However, a buyer should ask if there is any ...