Understanding Car Rebates So You Can Save Money

The world of car rebates is sometimes complicated for those who have not previously used a rebate. Car shoppers need to know how to understand rebates in order to use them wisely.

Eligibility

Just like with other consumer rebates, car rebates are often subject to terms of eligibility, such as how the payment is used or factored into a car bill, where the driver resides or what other incentives are being offered. Read the fine print on a rebate to see if you're eligible.

Expiration Dates

Car rebates can also be subject to expiration. Check this day to make sure that your rebate doesn't “wear out” while the deal is going through.

Using the Rebate

A rebate is an arbitrary amount of money that the dealer will “drop” from a purchase price according to any one of a number of incentives. However, that amount gets factored into an increasingly complicated set of prices, where the dealer can sometimes use that flexibility to ratchet the price back up to what it would have been before. Rather than assuming that the rebate will take their price down, a buyer should negotiate shrewdly with the dealer before applying the rebate to make sure that they get a reduced price.

Rebates vs. 0% Financing Options

A dealer will often offer a manufacturer's rebate against 0% financing on a vehicle. That means that a car shopper has to choose one or the other option. Potential buyers should run the figures through a calculator to be sure about which one of these will save them the most money.

Take advantage of these easy tips for using rebates wisely, and you'll see why they can be a good source of financial relief for those looking at a high sticker price on a vehicle.