Top 10 New Car Cash Back Deals for May 2016

Row of new cars for sale
Many new cars have large cash back rebates on them. Some are not advertised to the public.

Automakers are kicking off May 2016 with new car cash back offers as high as 40.06 percent off the manufacturer's suggested retail price (MSRP) on certain vehicles.

Even though May is one of the busiest sales months of the year, automakers are doing everything in their power to make up for lost car sales from the first half of the year.

Many dealers are still trying to liquidate the remaining old age inventory leftovers from 2015. A combination of large rebates, finance incentives, model year closeouts, and aggressive dealers make May one of the best times to buy a new car and receive a huge discount off MRSP.

Best New Car Cash Back Offers >>

Our neighbors over at Cars.com update their new car cash back offer list every month bringing us the best discounts available off MSRP. Keep in mind, all offers may change or be cancelled without notice and are subject to local incentives and vehicle availability. You can check with dealers in your local area to get an idea of the popularity of the vehicle you're interested in.

Kia's 2015 Kia Soul EV is leading the cash back list for May 2016 with a discount of 40.06 percent, or $13,500 off the manufacturer's suggested retail price (MSRP). Kia is also discounting the 2016 Kia Soul EV by 39.12 percent off MSRP. Our advice is, if you can get a 2016 for the same price as a 2015 model, go for the 2016.

Kia has another vehicle on the list, the 2015 K900 has a large $13,500 (24.77% off MSRP) cash back offer right now. The K900 comes equipped with 19-inch alloy wheels, LED fog lights, adaptive xenon headlights, panoramic sunroom and front/rear view cameras are only a few of the standard features included on the K900 Premium edition. The K900 is an excellent luxury vehicle for about half of the competitors price. The 2016 Kia K900 is also on the list with an impressive $9,000 or 18.37 percent off MSRP.

BMW has the same offer on its 2015 and 2016 i3. You can take $7,500 off MSRP on either year model. You're looking at a discount of 17.69 percent on either one. Not sure why BMW is advertising this deal, there is no real incentive to purchase an older 2015 i3. My advice would be to really work the dealer on discounting he price if you decide to purchase a 2015 year model.

Before visiting a dealership, do your research and compare vehicles online, have dealers send you price quotes on the new car, or cars, you're interested in. You can then use your lowest quote to play dealers off each other to guarantee you pay the lowest price and get the best deal possible. Read my section on how to get new car price quotes online to learn more on how to keep from negotiating with front line car salesman.

See all the other top 10 new car cash back deals on the list below.

Competition Between Dealers Always Gets You the Best Price

When negotiating a new car's price, it’s important to know the dealer invoice price and what other people are paying for the same vehicle in your local area. Otherwise, you won’t know what's a good price to pay for the vehicle. I highly recommend using an online referral service such as Edmunds or TrueCar, their quotes will automatically include any discounts or cash-back incentives currently available in the marketplace.

In addition, the above sites will tell you which dealerships in your local area are currently the most flexible with their new car pricing. These sites provide valuable information for anyone thinking about buying or leasing a new car or truck.

Top 10 Best New Car Cash Back Deals Available Right Now

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Rank New Car Yr, Make, Model Cash Back Discount from MSRP Expiration Date
1 2015 Kia Soul EV $13,500 40.06% 07/05/2016
2 2016 Kia Soul EV $12,500 39.12% 07/05/2016
3 2015 Kia K900 $13,500 24.77% 07/05/2016
4 2015 Mitsubishi Mirage $3,000 23.09% 05/31/2016
5 2016 smart fortwo electric drive $5,125 20.5% 05/31/2016
6 2015 smart fortwo electric drive 5,125 20.5% 05/31/2016
7 2016 Kia K900 $9,000 18.37% 07/05/2016
8 2016 BMW i3 $7,500 17,69% 06/30/2016
9 2015 BMW i3 $7,500 17.69% 06/30/2016
10 2016 Hyundai Elantra $2,750 15.94% 07/05/2016