Car incentives and rebates can sweeten the deal when you're in the market for a new vehicle. Edmunds, a car research website, says you can search online for certain types of incentives like financing, rebates and warranties. You can find other specials like maintenance or sales by shopping around at local dealerships. Rebates and incentives are often seasonal, so it pays to keep checking if you can't find anything for the model in which you are most interested. Cars.com says they are generally offered for a limited time, but they may be repeated so keep watching if you miss a special offer.
Interest Rates
The financing arm of the car manufacturer may offer extremely low interest rates on auto loans. They are usually in the single digits and may be as low as zero percent, although you must have a very high credit rating to qualify. The loan length might run anywhere from two or three years to five or more. A long-term loan at zero or one percent can give you significant savings. You must finance your car through the manufacturer to get this incentive.
Cash
Cash is often given to car buyers by manufacturers. This is known as a rebate and cars.com says they often run from $500 to $2000 or more, with the highest amounts typically given on more expensive cars. It is deducted from the total after you have agreed on a purchase price for the car. Sometimes cash is given to every buyer of a particular make and model. Car companies use these general rebates to increase sales of slow selling models or to rack up more sales during sluggish seasons like December and early January. Some rebates are limited to certain parts of the country, and some are only given to members of certain groups. For example, you may qualify for a loyalty rebate if you already own a car made by the same manufacturer, or you may be able to get some money towards your car if you are a recent graduate.
Dealers sometimes get money from the manufacturer which they do not have to share with customers. However, it raises their profit on certain models so they will often give you a better price on those cars.
Equipment
Some vehicles have special equipment that includes a free trial subscription. For example, General Motors cars have OnStar, a service that gives driving directions, notifies emergency responders if the car is in an accident and even opens the vehicle remotely if you lock your keys inside. Some manufacturers put satellite radios in their cars and give you a free subscription for several months. These incentives are temporary, as you will have to pay to continue the service after the trial period.
Warranties and Maintenance
New cars come with limited-time full warranties and long-term power train coverage. These warranties are backed by the manufacturer, so your car can be serviced by any dealer. You may even get roadside assistance and free towing as part of the package. Some dealerships may also give you a maintenance package as a special incentive. For example, you might get a year of free oil changes and tire rotations. These incentives will only be honored by the dealership where you purchased your vehicle.
Sales
Car dealers may occasionally offer price incentives. For example, they may sell cars for one dollar over invoice. They still make a profit, carbuyingtips.com says, because they get payments called "holdbacks" from the manufacturer, and they may be getting additional factory-to-dealer cash. You may be able to get the car even cheaper than the sale price if you research dealer incentives.
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