The time to buy a new car is right now! While every ad may be telling you that, some have a very good reason too, in the form of Manufacturer Rebates. Now we can guess what you’re thinking, “what’s a rebate”, “how do I use it”, and “where am I”? Ok, maybe not the last one. Anyway, rebates can help you get a better deal on the car you’re looking at, a better interest rate if financed, or just some extra cash in your pocket. Here’s a quick guide to help you understand how they work!
What is a Rebate?
A rebate is a money saving program directly from the vehicle manufacturer applied to specific vehicles. It helps to give a vehicle a competitive price, or help to gain consumer interest on a vehicle model. It also helps with new vehicles that need to be sold off of lots to make way for next year’s models. The number varies from vehicle to vehicle but these programs are created on a regional or national level. At the end of the day it’s a special offer to help a buyer get a new car at a really great value. It’s a win-win when used correctly.
Are there different types of rebates?
There are many different ways manufacturers can add rebates to vehicles. Some of the most common rebates come in the form of general rebates for customers, while others are offered to specific customers. These include but are not limited too:
- Loyalty Rebates – for being a return customer to that vehicle brand again
- Conquest Rebates – for being a first time buyer of that brand after previously owning a different one
- College Rebates – for recent college graduates
- Military Rebates – for our American Heroes
Other rebates can come in the form of low interest rate financing or cash back. It is important to understand which specialty rebate can apply to you, so you can make an educated decision on how to use it.
How do I use it?
Rebates are factored into the final selling price of a vehicle. Once a rebate is put on a car it is up to the costumer to decide how to use it. The rebate does not necessarily have to go toward the purchase of the car, as the customer can choose to have a check for the exact amount sent to them. Most customers choose to use the rebate toward the down payment of their new vehicle. This method can use all of or part of the rebate to go toward the down payment.
What about Manufacturer Incentives?
Another great question! If you have enough money ready to put toward a down payment, or a trade in that could cover that cost, manufacturer incentives for financing a vehicle can come in handy. Low interest financing, or possible 0% financing, can be had on certain vehicles. While special financing rates may not be available to everyone, since it is mostly based on credit ratings, it is worth looking into for those that qualify. For more about credit, check out this post we have about credit ratings.
Are there other incentives I can get?
Yes there are! Many dealerships offer their own incentives to customers; however some won’t reveal the offers available unless asked. This is not a good thing, and is usually the sign of a dishonest dealer. This is another reason why it is important to go to a dealer known for having an easy and transparent car buying process.
Rebates and incentives are helpful for understanding how to make the most out of available offers on a new vehicle. The right choice could help lower a monthly payment, get a better interest rate for a loan, and possibly give you some cash back! All of these programs are made to help you get a better deal on your next new vehicle, without the hassle of extending your budget.