How to Negotiate the Purchase of a Car with a Rebate

New car rebates can save you hundreds or even thousands of dollars. Vehicle manufacturers use rebates to spur sales of slow-moving models, stimulate business in slow seasons and clear out old stock at the end of the model year. Dealers may try to trick you into paying a high price for your new car even though it has a rebate. You can counteract this by knowing how the rebate should play into your negotiations.

Instructions

1

Find all the available rebates for the car make and model you plan to purchase. Most rebates are advertised prominently in television ads and newspapers but there could be unadvertised special too. For example, some vehicle manufacturers give a rebate to recent high school or college graduates, military personnel or people who own a competing car brand. Sometimes there are also incentives in certain states or regions. You can do a free search for rebates on automotive research sites like Yahoo Autos or Edmunds.com.

2

Calculate the dealership's cost for the vehicle, the Negotiation Dynamics coaching website advises. Generally you can get a good figure by finding the invoice price on an automotive research site and subtracting the holdback, which is money given to the dealer by the manufacturer on every car. You must also subtract any factory to dealer incentives, which leaseguide.com explains is money given by the manufacturer directly to the dealer. Holdbacks and incentives will be listed on automotive research sites. This gives you a base figure from which to determine a fair offer amount.

3

Read online forums at sites like Edmunds to see what others in your area are paying for the same type of car. A slow-moving car might be selling at or below the invoice price, especially if it has larger dealer incentives. Popular models may sell for $100 or more over the invoice amount. Formulate an offer based on your research and the lowest selling prices in your area.

4

Visit local dealerships and make your offer. Explain that you know about the current rebates and that you expect them to be subtracted from the negotiated price. They should always be separate from your negotiations because the money comes from the manufacturer, not the dealer, and it will be the same no matter where you actually buy the car.

5

Read your vehicle purchase contract carefully before signing it once you come to an agreement with a dealer. Make sure you are paying the negotiated price and that your rebates are being subtracted from that price.