What are Factory-to-Dealer incentives?
Factory-to-dealer incentives are commonly referred to as hidden or secret rebates. Internally these non-advertised dealer incentives can be known as marketing credits, trading dollars, factory cash, dealer cash, dealer bonuses, invoice credits, etc. Many manufacturers will use them as additional stimulus for the dealer to sell more vehicles. In some cases, the manufacturer may not want to advertise that they are offering incentives to avoid tarnishing their image, where others will use these incentives to encourage dealers to carry more inventory and thus potentially sell more vehicles. Most dealers will factor in these factory-to-dealer incentives when negotiating a deal, in order to lower your price. Effectively this may allow the buyer (you) to buy/lease a new vehicle for less than the dealer invoice price. What is MSRP? What is Dealer Invoice Price? What is Holdback? What is the maximum dealer margin/profit? What is the actual dealer margin/profit?