CAW Local 584 Retirees

2008 CAW $35,000 Car Voucher Program
Program Rules – Effective September 17, 2008

CAW-represented Ford of Canada employees who retire under the 2008 Retirement Incentive Program are eligible for a discount of up to $35,000* on the purchase of any one "Z-plan" eligible vehicle. Following are details of this program. (*subject to any legally required withholdings)

The discount applies to the purchase of one new Ford Z-plan-eligible vehicle only.
The discount is based on the Z-plan price of the eligible vehicle, plus sales taxes/GST.
This discount includes any additional dealer-installed options, to a maximum discount of $35,000, (less legally required withholdings).
The vehicle must be registered in the name of the retiree or the retiree's eligible spouse only.
The vehicle purchased must be registered and delivered before the expiry of the current (2008) Collective Agreement (September 14, 2011).
The purchase must be made after the employee has retired under the 2008 Retirement Incentive Program.
The discount is not combinable with the $2,600 CAW Vehicle Discount program, but is combinable with other retail incentives and discounts.
The discount will be applied at the point of sale by the dealer to the vehicle price. Reimbursement will be made by Green Shield to the dealer.
The discount is subject to income tax, which will be deducted directly from the amount of the applied discount at the time of purchase. A T4A will be issued at year-end for those who utilized the discount in that calendar year. The T4A will be in the name of the retiree regardless of whether the vehicle is registered in the name of the retiree or their eligible spouse.

Retire under the 2008 Retirement Incentive Program and be advised that you are eligible for the $35,000 Car Voucher Program (your eligibility will be reported to Green Shield).
When you are ready to purchase your vehicle, obtain a regular Z-plan PIN from A/Z plan Headquarters at 1-800-828-7870. (Do not obtain a PIN with the $2,600 C-2 Voucher attached as these two programs are not combinable. Ensure you have a Z-plan PIN, not A-plan).
Purchase a new Ford Z-plan eligible vehicle from a participating Ford dealership. You will be required to provide the dealership with personal identification showing your full name and address so that they can confirm your eligibility and process the discount, less required withholdings. You will also need to provide them with your Green Shield plan member ID number (from your Green Shield card).
Ensure the vehicle is registered in your name as the eligible retiree or your eligible spouse's, and that the vehicle can be delivered before the expiry of the 2008 Collective Agreement, September 14, 2011.
The dealership will confirm your eligibility with Green Shield. If confirmed, the dealer will process the discount (less required withholdings) off of your purchase. If Green Shield is unable to confirm your eligibility, you will be directed back to your local HR department to ensure your eligibility has been reported to Green Shield. Green Shield cannot authorize any discounts for ineligible persons.
In order for the dealer to process the discount and be reimbursed by Green Shield, the dealer will require you to sign and date the Green Shield Dealer Claim Form and New Vehicle Purchase Pricing Sheet, confirming the details of the sale and authorizing reimbursement to the dealer.
You will be required to pay the dealer for any amounts owing in excess of your discount.

Q: Who is eligible for the $35,000 Car Voucher Program?
A: CAW-represented Ford of Canada employees who retire under the 2008 Retirement Incentive Program are eligible for the $35,000 Car Voucher Program. You will be advised of your eligibility at the time of retirement.

Q: Do I have to wait until I retire to make my purchase?
A: Yes, you must first retire under the 2008 Retirement Incentive Program and be advised that you are eligible.

Q: Can I give the $35,000 discount to another family member or friend?
A: No, the discount applies to the purchase of an eligible vehicle registered in the name of the retiree or their spouse only. Discounts cannot be processed by the dealer on vehicles purchased by ineligible persons.

Q: Can I use the $35,000 discount if I lease an eligible vehicle?
A: No, the program applies to purchases only.

Q: Do I have to wait to receive my $35,000, or is the discount applied when I buy the car?
A: The discount will be applied when you buy the vehicle from an authorized participating Ford dealer. The dealer will confirm your eligibility and apply the discount (less required withholdings) off of the Z-plan price of your eligible vehicle at the time of purchase.

Q: Is the $35,000 discount combinable with other programs and incentives offered by Ford of Canada, such as the $2600 CAW Vehicle Discount, delivery allowances or reduced purchased financing rates?
A: Yes, the $35,000 Car Voucher Program is combinable with other retail discounts or incentives available at the time of purchase. However, it is not combinable with the $2600 CAW Vehicle Discount program. Your dealer can advise you of any additional discounts available to you at the time of purchase.

Q: Is the $35,000 taxable? If so, how much tax will be deducted from the $35,000 payment?
A: Yes, by law it is considered taxable income so a lump-sum payment tax rate of 30% must be applied. The dealer will apply the 30% income tax deduction off of your discount, (resulting in a maximum discount of $24,500). Ford will remit the income tax withholding to the government on your behalf and issue you a tax receipt at year-end. EI and CPP do not need to be deducted.

Q: Will everyone be taxed on the $35,000 car voucher program?
A: No, only those who utilize the discount will be taxed on it. Furthermore, you will only be taxed on the actual discount provided, which will be based on the actual purchase price of the vehicle.

Q: What is included in the $35,000 discount? Are taxes included? What if I have a trade-in?
A: The discount applies to the purchase price of the eligible vehicle, plus sales taxes/GST charged to you by the dealer. The discount is in addition to any money paid to you by the dealer for a trade-in. You may choose to sell the trade-in vehicle to the dealer separately and keep the cash, or the dealer can apply the value of your trade-in to any amounts owing by you on the new vehicle that are above the $35,000 discount.

Q: What if the vehicle I purchase costs more than $35,000?
A: The discount is to a maximum of $24,500, ($35,000 less income tax). You are responsible for paying any amounts above the discount.

* final "drop dead" last price on Retail Buyer's Agreement. Z-Plan price, less any delivery allowance available in the marketplace, plus dealer installed options, plus OMVIC, Gas Tax, plus G.S.T. and P.S.T., plus registration and licensing fees = TOTAL CUSTOMER PRICE.

If the total customer price exceeds $35,000, dealership claims $24,500 and requests payment of outstanding amount from purchaser. If amount is less than $35,000, dealership claims for seventy percent (70%) of total customer price and requests payment of the outstanding amount from the purchaser.