Cash rebates taxed?

The only angle I can see for a dealer to do this, is that if you take the rebate as cash and then immediately default on the loan, the lender is now out the full amount of the vehicle plus the rebate, vs just the reduced amount by the rebate. Therefore with that risk I could see the dealer or manufacturer being responsible in some way of guaranteeing the rebate amount to the lender in the event of a default, since in effect all they are actually intending to do is reduce the sales price but in a round about way. Probably 99.9% of people accept the rebate therefore keep it simple. Their lawyers may have devised a way, or found a loophole for the manufacturer to write a check and issue a 1099 in such a case. Of course this is merely speculation but I put nothing past what dealers will do or say. Anyway, in the long run your still even as far as the money goes so it may be best to just chalk it up as another adventure and twist of buying a new vehicle,