About New Car Rebates and Incentives

Looking for a car can be fun but sometimes it can be stressful too. Worries over the cost of a new vehicle can take the fun right out of shopping for a new car. Customers are very picky and car dealerships want to sell cars quickly, which results in the dealers offering great rebates and incentives to the buyer.

New car buyers can really get good benefits from a new car rebate as well as some incentives. Car dealerships benefit from having the rebates and incentives because they gain a customer. If the customer has a good experience, they will pass the information on to family and friends. Word of mouth is one of the best ways for businesses to gain more customers. It is important to understand the difference between the rebate and the incentives and how they can be used.

REBATE

A rebate is given to the customer to entice them to buy the vehicle. This is given in cash back or a check that will come later in the mail.  It may reduce the actual price of the vehicle or can be used as the down payment. There are different types of rebates that are available to customers. All of these rebates help to boost the car dealer sales.

• Conquest rebate- given to a customer that is buying a new make and model of car.


• Loyalty rebate- given to a customer that is buying the same make and model of vehicle or trading in a make and model to buy the same model in a newer year.


• Military rebate- given to a person serving in the military.


• Student rebate- given to students only.

INCENTIVE

An incentive is different from a rebate. An incentive is either a reduced interest rate for a period of time or a reduced lease rate.

A rebate and an incentive can be used together if done correctly and will give the car buyer some great savings in the end. When used, they should make the vehicle a lower price then at other dealership. The actual purchase price needs to be lowered after they price has been worked on between the dealer and the buyer. Both the incentives and the rebates should only be used after set amount for the car has been reached. Also keep in mind the incentives and rebates have a deadline where they will expire. This is most important if the buyer is ordering a car new from a dealership. The rebate might expire or the incentive will end and the interest rate will rise therefore leaving a higher payment. Keep all of these different things in mind when buying a new car.