It’s important to be aware of the latest factory dealer incentives offered by car manufacturers in the US automotive market, to get a good deal on a new car purchase. Most dealers will lead you to believe they’re losing out on a huge amount of profit by offering you a rebate or an incentive. This is merely a sales tactic used by dealers when finalizing a car deal. You should know that the incentive offered by manufacturers to consumers is different from the incentive offered by car markers to dealers. Most dealers will make you believe that it’s the same incentive that’s being passed on to you. As a car buyer, you have to thus research the market and find out about current vehicle incentives made available by car manufacturers, to save a lot of money.
1. Customer Incentives
Although most car manufacturers offer good incentives on new car purchases, you will have to do your research well to find out the type of customer incentive that’s being offered. Some of the incentives are available in the form of good financing options and low lease payments. Other incentives may be offered as cash rebates. Since these customer incentives are usually offered on vehicles that aren’t selling too well, you won’t be able to take advantage of customer incentives on high-end vehicles. These incentives also vary according to the vehicle make and model year, and you should obtain online quotes from several dealers to find the best offer.
2. Factory Dealer Incentives
Although you’re entitled to customer incentives, you will have to use good negotiation techniques to get a factory dealer incentive. Since this incentive is offered to dealers to motivate them to sell vehicles quickly, you should try to find out more information on the type of incentives offered by manufacturers to car dealers to take advantage of them. Since this information is not always readily available, you have to do your research on the Internet and visit several dealerships to find out what they have to offer. As a new car buyer, your aim is to negotiate with the dealer, so that a part of the factory dealer incentive is passed on to you.
3. High Sales Incentives
Several manufacturers offer dealers additional incentives for reaching a high sales mark. Dealers that are nearing their sales target, often sell new vehicles at a bargain price. However, it is very difficult to find out which dealers are nearing their sales targets. You should thus request for car quotes from multiple dealers online, to find out which dealer is offering you a rate that’s much lower than competitors.
4. New Car Dealers
If you’re shopping for a new vehicle and find a new dealership in your neighborhood, consider visiting them in person to find out about car deals. Several auto manufacturers offer rebates to new dealers, to motivate them in luring new customers. These rebates and incentives can be passed on to you, if you know how to negotiate well.
Most dealers are also offered holdbacks 4 times a year. These holdbacks generally amount to 3 percent of the invoice price. However since dealers are reluctant to pass on this holdback amount to customers, you should learn a few negotiation strategies to save money when buying a car.
Although these rebates and incentives are applicable to new car sales, you may be able to save a lot of money if you purchase a used vehicle. Since used vehicles have already lost a part of their value to depreciation, you will be able to buy a good quality used car at an affordable price. Remember to also look up used car dealer prices or price guides online.