Factoring in rebates to final pricing

[flameboy54]

Do any of you guys know how to factor in rebates into the final price of a new purchase. I'm looking into the Fit, not sure which trim yet but I want to get my calculations straight before I do any real number crunching. I've outline an example (STRICTLY an example!) below. Let me know if I've done it right....

2009 Honda Fit DX (AT)

MSRP: $16,180 + $1,310 (PDI) = $17,490

Rebates:
- Scrap-it benefit: $1,250
- Gov't PST reduction: 7% tax (Up to $1,000)**
- Honda Loyalty rebate: $1,000**
- Total: $2,250 + 7%

$17,490 + $874.50 (GST) = $18,364.5 - $2,250 = $16,114.50


As you can see, I've used full MSRP, factored in only the GST and deducted the Honda Loyalty and Scrap-It rebate from the after-tax price. Is that how it's done?? If not, please school me.

Thanks.

**Further information for the Gov't PST reduction and Honda Loyalty rebate:
http://www.livesmartbc.ca/attachment...t_vehicles.pdf
https://www.agedstock.com/images/web..._2009_4076.pdf

[Rich Sandor]

Pretty close, except the scrap-it program portion is not deducted from the selling price of the vehicle, it comes as a rebate after the sale of the vehicle, therefore you pay more tax. Only the $250 dealer portion of the total scrapit rebate might be deducted from the selling price of the vehicle.

[Rich Sandor]

Plus, you might want to check if the MSRP includes a/c fee (if equipped) and tire & battery levies. Those are extra as well, and you pay one of the taxes (PST or GST) on levies. (can't remember which one)

And also Doc Fee.

FYI the details don't matter, in the grand scheme of things. You know, overall, you're going to be paying about $16-$17,000. Don't stress about the chump change. The car you find might have X options on it that will cost you extra anyways. You won't know 100% what you are paying until you pick out the car and are ready to sign the deal. Rebates change, and might come or go while you are making up your mind.

Good luck !