(1)
Generally. A
manufacturer's rebate can be used to reduce the purchase price of a vehicle
subject to the fee for new registration.
(2)
Qualifications.
a. To qualify, the rebate must be:
(1) A return of an amount that the purchaser
would otherwise have paid;
(2) In
the form of money;
(3) Offered by a
manufacturer licensed under Iowa Code section
322.27; and
(4) Applied to the purchase price of the
vehicle;
b. Additionally,
to qualify, the rebate is part of a transaction that is strictly between a
manufacturer and a purchaser.
(1) The rebate
must be from an entity acting as a manufacturer of such vehicle being purchased
when offering the rebate. The rebate cannot be from a vehicle manufacturer
engaging in other activities, such as a manufacturer acting in the capacity of
a credit card issuer or a financing program; and
(2) The purchaser must be in the process of
purchasing the vehicle when the rebate is given. The rebate cannot be given to
a customer in a situation similar to the credit card rebate program, in which
the customer earns the right to the rebate over a period of time. Purchase of
the vehicle must occur simultaneously with the receipt of the rebate. The
rebate cannot be allowed unless the customer purchases the vehicle.
(3)
Exclusion from rebate.
Payment methods, such as credit or debit cards, issued by vehicle manufacturers
that are used as a rebate toward the price of the manufacturer's vehicle are
not considered a manufacturer's rebate for the purposes of the fee for new
registration. These types of rebates cannot be used toward reducing the
purchase price of a vehicle subject to the fee for new registration.
EXAMPLE: Person R purchases a vehicle subject to registration
with a purchase price of $30,000 and trades in a vehicle valued at $10,000. The
manufacturer of the newly purchased vehicle gives Person R $1,000 on a
manufacturer-issued credit card as a "rebate." Person R pays $19,000 in cash
for the new vehicle. The fee for new registration is due on $20,000, because
the "rebate" was issued on a credit card rather than applied directly to the
price.
This rule is intended to implement Iowa Code section
321.105A.
Notes
Iowa Admin.
Code r. 701-250.4
ARC 5911C, IAB 9/22/21, effective 10/27/21; ARC 6508C, IAB
9/7/22, effective 10/12/22
Adopted by
IAB
March 19, 2025/Volume XLVII, Number 19, effective
4/23/2025
