WHAT ARE
“HIDDEN REBATES”
IN ADVERTISING?
HIDDEN REBATES ARE WHEN A
DEALER ADVERTISES A PRICE OR A
LEASE PAYMENT AND ADDS INTO THE
DISCLOSURE THAT:
ALL PRICES AND PAYMENTS INCLUDE
- OWNER LOYALTY
- OFF LEASE LOYALTY RENEWAL
- COLLEGE GRADUATE
- MILITARY APPRECIATION
- AARP OR OTHER GROUPS
- MUST BE A REPEAT CUSTOMER OF
THEIR DEALERSHIP WITHIN THE
LAST 6 MONTHS AND BE
TRADING-IN THAT VEHICLE
IN THIS EXAMPLE YOU WOULD HAVE
TO QUALIFY FOR 6 DIFFERENT REBATES
TO QUALIFY FOR THE PRICE OR LEASE
PAYMENT BEING ADVERTISED
- $500.00 OWNER LOYALTY REBATE
- $1000.00 OFF LEASE LOYALTY
- $500.00 COLLEGE GRADUATE
- $750.00 MILITARY APPRECIATION
- $500.00 AARP REBATE
- $1000.00 REPEAT CUSTOMER
TOTAL = $4250.00 WORTH OF REBATES
IF YOU QUALIFIED FOR ALL 6 REBATES
THEN YOU WOULD BE ELIGIBLE TO
PURCHASE OR LEASE ANY OF THE
VEHICLES BEING ADVERTISED AT THE
ADVERTISED PRICE OR LEASE PAYMENT
IF YOU ACTUALLY QUALIFIED FOR
ANY ONE OF THESE REBATES THEN YOU
WOULD SUBTRACT THAT ONE REBATE
FROM THE $4250.00
LET US SAY YOU ARE A RETURNING
LEASE CUSTOMER AND YOU QUALIFY
FOR A OFF LEASE LOYALTY OF $1000.00
HOWEVER, YOU DO NOT QUALIFY
FOR ANY OF THE OTHER REBATES
IN THE DISCLAIMER.
THIS MEANS THAT IF YOU WANTED TO
PURCHASE A VEHICLE BEING
ADVERTISED AT A REALLY GREAT
PRICE, AND SINCE YOU ONLY QUALIFY
FOR $1000.00 OF THE $4250.00 IN
REBATES INCLUDED IN THE
DISCLOSURE, THE PRICE OF THE
ADVERTISED VEHICLE WILL COST
YOU $3250.00 MORE!
$25,000.00 |
M.S.R.P. OF VEHICLE |
$23,500.00 |
PRICE THE DEALER WANTS |
- $1,000.00 |
REBATE ALL QUALIFY |
$22,500.00 |
PRICE DEALER WANTS LESS REBATE |
- $4,250.00 |
THE REBATES INCLUDED IN THE DISCLOSURE |
|
|
$18,250.00 |
ADVERTISED PRICE
LOOKS REALLY GREAT! |
NOW YOU WANT TO
PURCHASE THIS VEHICLE
$4,250.00 |
REBATES INCLUDED IN THE DISCLOSURE |
- $1,000.00 |
OFF LEASE LOYALTY REBATE YOU QUALIFY FOR |
= $3,250.00 |
THE BALANCE OF REBATES YOU DO NOT QUALIFY FOR |
+$18,250.00 |
THE ADVERTISED PRICE |
= $21,500.00 |
FINAL SALE PRICE + TAX, M.V. & DEALER DOC FEE |
YOUR FINAL SALE PRICE IS $21,500
WHICH IS $1,000 LOWER THAN THE
PRICE THE DEALER WANTED
FOR THE CAR.
THIS IS BECAUSE YOU QUALIFIED FOR
OFF LEASE LOYALTY OF $1000.00
NOW YOU WILL BE BETTER
PREPARED WHEN READING THE
NEXT NEWSPAPER ADVERTISEMENT
FOR A NEW CAR
THIS WEBSITE OF VALUABLE
INFORMATION WILL SAVE YOU
HUNDREDS, MAYBE EVEN
THOUSANDS OF DOLLARS!