BMW and Audi Among 7 OEMs Pledging to Cut Dealer Rebate Period to 60 Days
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Author:小编   

In an effort to alleviate the financial strain on dealerships, seven leading Original Equipment Manufacturers (OEMs), including BMW and BAIC BJEV, have committed to expediting sales incentives and rebates to within 60 days. GAC Toyota has taken a further step by restructuring its rebate system to settle most rebates on a monthly basis, with payments typically processed the following month. Traditionally, luxury brands have adhered to a payment schedule where a portion of the rebates is disbursed three months post-sale, with the remaining balance settled the subsequent year. Often, these rebates are deducted from the vehicle price through red-letter invoices. Currently, 85% of auto dealerships are grappling with the issue of price inversion, with over 60% experiencing an inversion rate exceeding 15%. This challenging environment resulted in more than 4,000 dealers withdrawing from the network in the past year.