It's in lieu of the cash rebates - which in most cases are a minimum of $4K, RHO doesn't have the rebates so it also does not have the incentivised rates.
This is what is often lost in assumptions/translation - again not really applicable to RHO but educational none the less
There is a certain amount of $ that the marketing arm of RAM puts in to the market (can vary by region, too).
They can do it with cash rebates, subvented lease programming, and promo APRs.
In different parts of the country, you will see different emphasis on those different tactics. In a lot of cases, all three will exist at the same time, but you'll only HEAR about one or the other.
The key is to do the homework and compare each scenario end to end.
A customer of ours did some math and created this table a year or two ago, his explanation here:
"If anyone is trying to figure out whether the financing promotion is better than the cash incentive, you can use this table. The values in the table are the amounts that you would save given different scenarios. If the cash incentive offered by RAM is bigger than the amount in the table, it's likely better to take the cash incentive.
You'll need to know what interest rate you can obtain on your own (not using the incentive promotional rate.) For example, let's assume you'll need a loan for $50,000 and you qualify for a 7% interest rate on a 5 year term through your bank or a Credit Union. Enter the table from the left at $50,000 and 7%, and go across to the corresponding promotional rate from RAM (in this case, assume it's 3.9% for 5 years). This tells you that your benefit from this promotional rate will be $4,289. If the cash incentive is lower than this amount, the financing offer might be better for you. But if the cash incentive is bigger, taking the cash incentive is likely better." (my note - "on your own" doesn't have to mean outside the dealership, jsut means not using the promo apr)
View attachment 747
