Auto Dealer Incentives
It really is in your best interest to have a very good idea of what the cost of the car is to the dealer including the auto dealer incentive allowance…
not just what the dealer paid for the car.
Two very different amounts, I assure you.
This knowledge will certainly strengthen your position when it comes to making offers and counter offers throughout the new car deal process and also a starting point from which to present your offer to the dealer.
Knowledge definitely worth the time and effort.
Cash back, incentives, rebates have become just as much a part of the deal as the car itself… maybe more.
Manufacturers and dealers will be even more creative in their marketing by offering ’special financing‘ and your choice between cash back and special discount pricing and financing. These programs are beneficial to you the buyer. If you know about them. And, at least ostensibly, not designed to deceive you.
It’s simple competition for your dollar.
Having said this, you should also keep in mind when it comes to marketing techniques such as special low interest financing, the dealership is simply taking the rebates from the manufacturer and giving to the finance company in what is commonly called ‘buying down the interest rate’.
Yes, it’s true that this may very well could have been money back to you, but using to buy down your finance rate isn’t all that bad.
The point here is that the dealer isn’t that magnanimous with his own money. It was probably yours in the form of a rebate.
From a marketing perspective, factory rebates open up a whole new arena of creative marketing ploys. Don’t necessarily rely on the salesperson or the dealer to offer up this money and automatically put it on the table… you need to know this… remember.
Also, a great rebate offered and car dealer incentives shouldn’t be the sole reason you go after a particular car.
A great rebate attached to a poor deal is still of bad value to you.
Some tips on finding the right car next…
