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The Guide to New Car Deals and Incentives
Before purchasing a new car, you should learn about the new car deals and incentives offered by manufacturers so that you can get the best value for your money. There are several rebates and dealer incentives that the average consumer knows nothing about, and these incentives can translate into savings of several thousand dollars. There are two types of incentives offered by auto manufacturers: dealer incentives and customer incentives.
Customer Incentives
Rebates are incentives offered by car manufacturers to the customer. Before you visit a dealership to buy a new car, it’s essential that you do some research on the Internet or read magazines such as Automotive News. You should use this knowledge when you negotiate the price of your selected car with the dealer. These rebates are offered for a limited time period only and, usually, you are handed over a check when you buy the car. You should use the rebate check to make your down payment or part of it, as it is the best use you can make of this money since it’s taxable. You can also qualify for incentives such as a good student incentive or a first-time customer incentive and buy the car at a lower purchase price. If you are a repeat customer, you may qualify for a loyalty rebate. Manufacturers also offer incentives such as free servicing, auto insurance and extended warranties. It’s best to know about such incentives before you start negotiating the price of any vehicle. A good credit score can qualify you for an incentive in terms of lower interest rates on loans.
Dealer Incentives
Dealer incentives are offered by manufacturers to dealers for cars that aren’t selling. These incentives can range from $2,000 to $5,000 depending on the make and model of the car, the price of the vehicle and the season. They can mean a lot of savings for you as a customer if you negotiate well. Dealers sometimes pass over these incentives to customers. Most manufacturers give dealer incentives, and this is the reason why it’s possible to purchase a vehicle for less than the Manufacturer’s Suggested Retail Price of the car. In order to get the holdback amount from the manufacturer, dealers are sometimes willing to sell vehicles for less than the invoice price of the car. Even after you have been offered the customer rebate, cheap loan and extended warranty on your new car, you should still try to get a better deal on your purchase, especially if the car is a model that has just been introduced into the market or is going to be phased out. Incentives are usually offered on cars that aren’t very popular. Moreover, since cars sell less at Christmas time, you will find many incentives and rebates being offered at the end of the year by most dealers.
You could also visit the U.S. News Rankings & Reviews to find out more about current deals and incentives offered to new car buyers.
