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You never have to pay full MSRP. That being said most times subvented financing in in lieu of rebates.
You were told by whom?
In my recent experience (2016, see signature) there was one incentive (I think it was $500) for using Ford Credit that I wouldn't have gotten had I used someone else, so this absolutely not true. I paid well under MSRP (car was $26k MSRP and I paid $21k) and used the 0% from Ford.
What car are you buying? Yes, sometimes you can't apply cash incentives if you take subsidized financing. However you can bring in your own financing (e.g., DCU or Cap One) and get the cash incentive.
Generally speaking I'd say a dealer that says this is lying. For very few models do people pay MSRP even before incentives. My bet is the dealer is trying to get you to pay too much here. I'd go to another dealer or call the bluff and say "okay, I'll bring my own financing, what's the lowest price you can offer?" Highly encourage you to shop around.
@Anonymous wrote:
The dealer, of course. He said many incentives you can’t use, you’ll have to pay close to MSRP. It’s an incentive of 750$ and 0% APR but he was saying the other ones wouldn’t be compatible and getting the cash back as opposed to using 0% APR would be a better deal.
Most financing offers are either a rebate or incentive financing (sub market, not always zero percent.), but no rebate. Sometimes, particularly on slow moving vehicles, there's a rebate with the incentive financing, but it's less than the cash price rebate is. They're usually designed so that they're about the same to the consumer -- the rebate is about what you're saving in interest. That's not always true, you have to do the comparisons on everything you're considering. Sometimes the rebates are better, sometimes the financing is.
In general, you sould negotiate the price of the car as if the incentives don't exist. Say you're buying a $40K sticker car, with a dealer cost (not invoice, they don't actually pay the invoice) of $35K, and rebates of $3500 or 0% financing. If they sell the car to you for $36K, they're making a good profit, and they shoud be willing to sell for that price. That the manufacture is providing rebates of $3.5K doesn't enter into their economic decision. They're going to try to make you think it does, because car dealers are scum. they'll tell you should pay "33.5K", which is wrong. They're getting paid $37K for that car they're willing to sell for $36K.
if the car you're looking at is in short supply, the selling price might be closer to the sticker, but the basic principal is the same.
Remember, there are lots of dealers, and it's worth driving a few hours to save some money. (A 10 hour round trip, say 500 miles one way, to save $1000 is $100/hr. Allow for gas, and it's still a lot.). I bought a car earlier this year. I and my wife called 29 dealers....
Any dealer who claims you have to pay MSRP for a new car is a liar, it's just that simple. Stay away from that place, he will not give you a square deal. The zero interest loan comes out of the pocket of the manufacturer, not the dealer.
Dang, some of y'all are kind of harsh. Guess I see it differently since I've worked at a dealership for a decade, specifically a GM branded store. At any rate, it is certainly possible that you give up all REBATES for 0%. You can still negotiate with the dealership on the sales price though. Or, if you want the rebates (because on some vehicles you could give up as much as $7,000 in rebates for 0%), then finance thru your credit union or another bank the dealer has. You could also have the dealership work the numbers both ways (i.e. take 0% vs take rebates). If you have good credit, there's a good chance it makes more sense to take the rebates and finance at a low percentage rate. Or if you don't want to lose the rebates and you don't want to pay interest, you could just pay cash for the vehicle.