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Why do some dealer incentives on specific models have a range of values?

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Why do some dealer incentives on specific models have a range of values?

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Sometimes, the manufacturer will tell the dealer that he must sell a certain number of cars to qualify for an incentive. For example, let’s say Nissan offered dealers an incentive of $100 – $1,000 on the Altima. This is a quota-based incentive. It means that to get the $100.00 per car, the dealer might have to sell 10 cars before a certain date. To get $500 per car, the dealer might have to sell 50 cars before a certain date. To get $1,000 per car, the dealer might have to sell 100 cars before a certain date. The more cars the dealer sells, the more money he makes, because quota-based rebates are retroactive. With these types of quota-based incentives, you have leverage. With your sale, the dealer is one car closer to clearing the next hurdle and making more money. We recommend that you request half of the maximum quota-based incentive while negotiating your deal, unless the dealer or salesperson bungles and admits that your sale will put them into the next tier of incentive qualificat

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