PrintManufacturers often offer special incentives to both customers and dealers in an effort to increase sales on cars that are not selling as well as anticipated. Such incentives, including cash rebates, make it clear to buyers that there are high markups on automobiles, and that some flexibility exists in the actual price that's passed on to the consumer.
It's worthwhile to look for car incentives and rebate programs — you can actually save a few thousand dollars on the vehicle. Keep track of what TV commercials advertise, and check the dates for when the incentives are offered. If you know the list price of the car from ads or from visiting online auto Web sites, then you should have a good idea of what the dealer's price should be.
Most often, dealers will work with you on the incentive, while trying to get more money back on a slew of extras and additional charges. Just say no to these. A $4,000 incentive works best if you don't succumb to thousands in extras and extended warranties that you don't really want or need.
Typically, when new models arrive, or at the end of the year, you'll see more incentives. Don’t worry if you miss one. Usually another comes along shortly thereafter. If you're offered a rebate or lower financing, you can use a calculator to figure out which is best. However, it's hard to pass up the cash rebate, which can be invested to help cover your financing. You can get a check from the manufacturer, or have the rebate applied to the price of the car, which will also lower the sales tax.
Incentives are not always as straightforward as you might think. For one thing, you need a very good credit rating to receive the low-interest financing offered. Another important factor to be aware of is that not all incentives will be valid at all dealerships. Some incentives are offered only in specific regions where certain models are underselling. Make some phone calls before venturing out to dealers, and ask about the incentives you've heard advertised. Also, make sure they are offered for the model you want.
Dealers also receive incentives from the manufacturer to sell certain models. Some of the automobile Web sites, including NewCar101.com and Edmunds.com will clue you in on these incentives. Such knowledge can help you negotiate a better deal on the model you want.
Incentives drive much of the car-buying market, and if you're a patient shopper, you can benefit from such inducements. Don't compromise on the car that you want. Most manufacturers will offer an incentive program at some point during the year. Remember, the car companies are very competitive — they all want your business.
