What Is A Dealer Discount

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Sep 25, 2020  · Buying a car, truck, or SUV at the Employee Price also tak

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Dec 30, 2020  · If instead, the dealer discounted the $5,050 the following

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What Is A Dealer Discount - FAQ

How do dealers discount cars?

Dealers often promote a specific vehicle on their lot with a deeply discounted price. These can be identified by language like "only one at this price" and a stock number like "D45060." Manufacturers don't subsidize these discounts -- dealers shoulder any lost profit -- and this means advertised prices are typically non-negotiable.

What does it mean to get a factory discount on a car?

In most cases, heavily advertised new-car price discounts have a “factory contribution” as well as a “dealer contribution.” This means both the manufacturer and the dealer give up some (or most) of their potential profit to help promote sales and move cars off the sales lot.

What cars offer discounts?

Most manufacturers, including GM, Nissan, Toyota and Chevrolet provide discounts on cars to current employees and retirees, and though the programs vary, they often reduce transaction costs to near or below the price on the invoice sent to the dealer.

Are dealer discounts subject to sales tax?

When the dealer gives a true discount (not reimbursed by the manufacturer or anyone else), the amount the retail customer is actually charged is subject to the retail sales tax and the Retailing business and occupation tax. If the sale is a wholesale sale, the amount the customer is charged is subject to the Wholesaling B&O tax classification.

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How to find what is a dealer discount?

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