Automotive Loans: Car Buying Incentives

(1/21/2013) Everyone with something to sell offers sales, coupons, or other methods of enticement for consumers. Car makers and dealers offer rebates and incentives.

Understanding what rebates and incentives are available can give car buyers special power during the purchasing and negotiation process, and ultimately reduce the amount of money spent initially and over the life of a loan.

    • New car rebates. These are highly popular incentives offered by car manufacturers, advertised as “cash back” or “bonus cash” offers. The amounts offered can range in the hundreds or thousands. Typically this type of rebate is actually applied to the cost of the new car, reducing the total amount paid and/or financed. In some cases, there may be specific qualifications or conditions for receiving these rebates. When using a rebate, experts recommend negotiating for a new car as if the rebate didn’t exist in order to actually feel their benefit.

    • Used car rebates. These type of rebates are offered by dealers instead of manufacturers, and may be less common than new car rebates. Plus, used car rebates will vary by individual car due to their differing value, rather than an entire model or make of car. Overall these rebates are usually smaller in value, but can add up to big savings.

    • Government rebates. In addition to dealer and manufacturer rebates, the government offers rebates for certain cars, including hybrids and alternative fuel cars. These types of rebates are designed to reduce oil consumption and air pollution, and are applied for after purchase.

    • Low-interest financing. In addition to rebates, car manufacturers and dealers partner with lenders to offer special incentives including low- or no-interest financing. This arrangement significantly cuts down on the money borrowers pay each month and over the life of a loan. Usually, buyers need excellent credit in order to qualify for these offers, and consumers are offered this option OR a rebate.

    • Special leases. When leasing a vehicle, one common deal from manufacturers is a reduced lease. Carmakers and dealers base the lease on a residual value that’s higher than the actual worth of the car at the end of the lease, which translates to either a reduced monthly lease or money due at signing. Know that these often extend the time of the lease, or alter other key details of the lease like miles allowed per year.

Edmunds.com features an incentives and rebates page where you can research all current incentives by car brand and model, which can arm you for a more effective negotiation and purchase.

For Additional Reading:

Incentives: Rebates and Financing Offers: http://www.cars.com/go/advice/incentives/index.jsp

The 7 Types of Car Incentives:
http://www.realcartips.com/newcars/031-types-car-incentives.shtml


 


Amy Lillard A frequent contributor to ERATE® since 2006, Amy Lillard is a freelance writer specializing in turning complex information into useful tips and tricks for readers. For questions or topic suggestions, contact Amy at [email protected].

 

Other related articles:

Automotive Loans: Should You Buy New or Used?

Automotive Loans: Negotiating a Loan with a Dealer

Automotive Loans: How Much Car Can You Afford?

Automotive Loans: Buying Vs Leasing

Automotive Loans: Applying for a Car Loan

Avoid advertised auto trade-in, loan pay-off rip-offs

Auto sales, loans hit the speedway

High MPGs and low auto loan rates can save you thousands of dollars

Research your options when shopping for an auto loan

How to drive a hardauto loan bargain

Special Report: Hitting the Brakes on Auto Dealer Loans

Buying vs. Leasing: A Comparison

Closed End Lease or Open End Lease



New and Used Auto Loan Rates

Choose Your State Below

Auto Loans - Hawaii Auto Loans - Alaska West Virginia Auto Loans Virginia Auto Loans District of Columbia Auto Loans Maryland Auto Loans Delaware Auto Loans New Jersey Auto Loans Connecticut Auto Loans Rhode Island Auto Loans Massachusetts Auto Loans New Hampshire Auto Loans Vermont Auto Loans New Hampshire Auto Loans Maine Current Auto Loans Vermont Auto Loans Auto Loans - New York Auto Loans - Michigan Car Financing - Wisconsin Auto Loans - MINNESOTA Auto Loans - Kentucky Auto Loans - Indiana Illinois - Auto Loans Auto Loans - Iowa Auto Loans - North Carolina South Carolina Auto Loans Auto Loans - Florida Auto Loans - Georgia Auto Loans - Tennessee Alabama - Current Auto Loans Auto Loans - Mississippi Auto Loans - Louisiana Auto Loans - Arkansas Auto Loans - Oklahoma Auto Loans - TEXAS Auto Loans - New Mexico Auto Loans - Arizona Auto Loans - Kansas Auto Loans - Nebraska Auto Loans - Colorado Auto Loans - Wyoming South Dakota Auto Loans Auto Loans - North Dakota Car Financing - Montana Idaho Car Financing Washington Auto Loans Auto Loans - Oregon Auto Loans - Utah Auto Loans - Nevada Auto Loans - California

Start by selecting your state






Get the Updated and Improved Mortgage Rates App from ERATE.com

iPad for Mortgage Rates

Get the Updated and Improved Mortgage Rates App from ERATE.com

ERATE App - Current Mortgage Rates and Credit Cards
FREE Mortgage Rate Widgets
Your State's Rates or National Rates
Get this Widget for any State you want