Jeep is offering $5000 rebates right now. I’m curious if these are taxed or not? And what determines that?
Also, when trying to enter numbers to match dealers offers so far, I’ve had a tough time figuring out how to enter fees so that I get to just first month’s payment due at signing. Can i get some help on best practices?
Thanks,
Dave
Depends on what state you live in
Thanks. I live in CA so I’m pretty sure it’s taxed.
So in the calculator it says taxed is (cash back offers, loyalty cash, bonus cash) and untaxed is manufacturer-to-dealer cash rebate. How do I tell the difference on dealer websites?
Most will deliberately be as vague as possible, but sometimes they’ll mention it in the small print. This approach can often be a wild goose chase though as often they’ll say that deal was only on a certain vehicle or it’ll include lots of incentives that don’t apply to you.
The best strategy is to do the research on what incentives you qualify for, what manufacturer incentives the dealer is getting and then you know what the minimum discount is. Then you can quickly work out from the MSRP what the sale price base is before then working on the discount you negotiate. It’s normally more time efficient to use cargurus.com and sort your search results by Oldest Listing and target the cars on the lot for the longest time, it gives you better targeting and more info.
If you’re having issues with the calculator use the share button link and post the link here and we’ll be able to help.
Rebates are taxed in CA, meaning they don’t reduce the selling price, they are deducted after tax & license is charged. On a lease, a rebate goes towards the cash DAS. If an incentive reduces the price, it’s a dealer incentive which allows the dealer to charge less for the car.
To summarize what’s being said: in California, rebates are taxed if they are applied after the sales price is set.
Couple of examples:
So Conquest incentives are not taxed because they reduce the sales price, right?
Jeep’s current cash rebates are applied after the sales price is set ($42,223 in the attached pic) so they’re taxed, right?
It’s going to depend on the state
