New car customer rebates and finance incentives are marketing support programs available to consumers and dealerships to help stimulate retail new car sales. These programs come in several forms. Some manufacturer programs include huge discounts from the vehicle’s price and will provide you with large additional savings.
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Factory incentives and customer rebates are marketing support programs available too dealerships and consumers to help stimulate retail new car sales. These programs come in several forms. Some are highly advertised, and some are secret incentives you may have to do some digging to find. I will show you how to search them out, and use them to your advantage.
There are basically two different ways a manufacturer can provide financial support to dealers to help them market new cars to consumers and stimulate new car sales.
Manufacturers will run these programs at different times of the year. If you fail to research this information upfront, or ask about these programs, you will never know if the vehicle you’re looking to purchase had one available. To make matters worse, most dealers will not come right out and offer them to you.
This section will provide you the information and the tools you’ll need to understand how these special programs work and how to check to see if a vehicle you want to buy has a rebate or incentive attached to it.
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The most common programs are provided to consumers directly from the manufacturer. Depending on the vehicle, there may be more than one program available.
Some manufacturers will also provide special programs such as military discounts, first-time buyer incentives, or other programs to target special customer niches and provide further discounts to help dealers sell new cars.
Customer cash rebates from manufacturers are provided directly to the car buyer to reduce the price of a new vehicle at the point of sale. Commonly a customer will elect to use the cash rebate as a down payment towards the purchase price of the new car.
1.9% OR $2,500 Customer Rebate on a New Charger!
Some new vehicles have both a low interest finance incentive and a cash rebate offer. Most of the time, unless otherwise specified, you have to pick one of the two. Before you pick, do a little research to find out which offer will save you the most money.
2.9% AND $750 Customer Rebate on a New Sentra!
There may be new car programs available from the manufacturer that offer a combination of low interest financing, and a customer rebate that can be used in conjunction. These types of programs are far and few between, but you can find them out there sometimes.
Factory to customer programs vary by manufacturer. You MUST always read the fine print on any special offers from a vehicle manufacturer or car dealer. Low interest financing offers advertising a low annual percentage rate (APR), and low payments are normally based on top credit tier customers “with approved credit” (W.A.C.) combined with large down payments or very short finance terms.
2.9%* Available on a New Ford F150
*W.A.C. 24 month term
Car buyers with less than perfect credit history may not qualify for these types of low interest programs. If your credit is less than perfect you may want to lean towards cash back or customer rebate offers.
Manufacturers may offer special lease programs also, these lease programs are usually through their own finance companies. You can find these special lease programs on websites such as Edmunds. These programs are also known in the industry as sub-vented or subsidized leases.
Lease a new Lexus for $329/MO**
**$3,744 due at signing + first payment + $600 acquisition fee + fee + fee + fee
A subsidized lease is generally based with a residual value that is much higher than its actual worth at the end of initial lease term, and the money factor is subsidized to below market rates.
A special lease will indicate the security deposit, annual mileage allowance, down payment, term, and monthly payment. The monthly payment is based on the amount financed and the estimated down payment.
In short, don’t get caught up with the in-your-face low payment, always read the fine print. You may be able to negotiate a $0 acquisition fee and $0 down payment, but your monthly payment may increase dramatically to make up for the money you’ve negotiated not to spend. Special lease programs are commonly targeted to car buyers with very good credit.
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Take the guesswork out of trading your car.
Instead of wasting time visiting each manufacturer’s website. You can find customer rebate and new car dealer incentive information at Edmunds. The information provided is the most current and up to date information available from the manufacturers.
Once you select a car and (choose the options) you will be presented with a picture of the vehicle. Under the picture is a small link that says, “view incentives.” This link will show you all the available customer rebates, dealer cash, customer cash, special programs, and new car dealer incentives all in one place.
After picking a car, Edmunds will provide you with their very accurate True Market Value Price. The TMV shows you what others in your area paid for the specific vehicle you want to buy. So you can be an expert before ever stepping foot inside the dealership.
Manufacturer’s will make you pick an offer, low interest financing or customer cash rebate. The savings is normally about the same either way you go. You will want to look at your current needs to determine which way will benefit you financially.
On very few occasions such as if the manufacturer is really trying to move a certain vehicle, they may offer a combined offer. (rebate + incentive).
Always read the fine print on a dealer’s advertisement. They are required by law to provide detail on the offer they’re promoting in their ad.
