Do they get that money back?

Question:
If a local mazda car dealership offers you a rebate (i.e. $2,530 off from Dealership & $1,000 off for financing through them), do they get that money back from the Mazda company?

Answers:

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actually no...what happens is that these are just discounts. In the 80's rebates and other discounts came available because the government imposed a cap on how much car makers could earn off of a car. Therefore...they use the rebates to encourage you to purchase the car. The rebate is the amount above what the car maker can make...so they still make the money...and you feel you get a good deal.

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