Serves the Commercial Small Fleet Market of 10 – 50 Vehicles

Study: Dealers Don't Always Disclose Rebates

December 30, 2004

A survey by Consumer Reports Auto Price Service reportedly reveals that consumers are frequently not being told about rebates and incentives by salespeople.Only 60 percent of prospective car buyers were offered an available cash rebate, and only 40 percent were offered available special low-financing rates, the survey showed.The Consumer Reports survey also found that the majority (58 percent) of new-car shoppers accepted items including alarms, VIN etching, and gap insurance. Less affluent shoppers, those with a yearly income of less than $60,000, were more likely to accept the extras. A spokesperson for the National Automobile Dealers Association, which represents most dealers, says not mentioning an incentive doesn't make sense. In most cases, rebates are paid by the automaker, not the dealer. In some cases, though, automakers offer dealers extra cash on some vehicles and don't advertise it. That's the kind of rebate a dealership appears most likely to keep quiet, according to Consumer Reports. Consumer Reports findings are based on a nationwide survey of 13,716 adults conducted earlier this year. The study investigated the buying behavior of new- and used-car buyers.
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