GM and Chrysler dealers fear the manufacturer may soon go bankrupt, and they’re trying to figure out how to minimize their losses if that happens. One area they’re worried about is the rebate cash owed to them from the manufacturers.

Rebates are typically paid by the car dealer who then gets reimbursed by the manufacturer the following month. Rebates on GM and Chrysler cars can be as high as $6,000 each so that’s quite a bit of pocket change.

In an effort to minimize the risk of losing money on these rebates, some dealers are resorting to passing the risk onto the customer. We’ve heard of at least 1 GM dealer who has convinced his customers to “hold the rebate”, meaning they don’t get the rebate until GM reimburses the dealer. NEVER AGREE TO THIS!

If GM goes bankrupt, they may never reimburse the dealer, thus these customers are out several thousand dollars. If you run into a dealer who tries to pull this on you, insist on getting the rebate as part of the deal or simply take your business elsewhere.

Filed under Chrysler, GM, Rebates, Scams.