If you watch any car ad you know how badly card dealers are willing to go to make a deal with you. Our screens are flooded with phrases like “Dealer Cash, Customer Cash, and Special Interest Rates,” all designed to get customers on to the lot and into a car. Before sitting down to sign a deal with a dealer, it’s important to understand what kinds of incentives are available from the dealer, the manufacturer, and how these deals can benefit you.
What’s In It For You?
First off, what exactly do dealer incentives do for the customer? Put simply they reduce your final price. Either by taking upfront money off of the sticker price, or by reducing the overall interest paid for the life of the loan. Either way, dealer incentives reduce your bottom line.
Types of Incentives
The incentives available from your dealer generally call into one of 4 categories. Manufacturer Rebates, Dealer Incentives, Interest Incentives, Specials. Here is a brief rundown of each.
This is often called “Customer Cash, or Bonus Cash,” and mostly you’ll see this type of incentive applied directly to the front end sticker price. The buyer can opt to keep this money, but then they have to wait for a payout.
It’s no secret that car makers have certain models of car that they’d like to sell more of. Often times these models are backed up by what’s called “Dealer Cash.” This is money paid from the manufacturer to the dealership, and while there no obligation for the dealer to pass on these savings, it can be a good negotiating point.
This is probably the hardest incentive to get. You’ll see advertisements for things like 1.9% financing, or 0% for 2 years. Basically, the financing company is willing to forgo interest for a certain amount of time, for customers with a very high credit rating. The credit rating requirement is what makes these incentives hard to get.
These types of discounts or rebates are generally unique to your local dealership but can be offered nationwide as well. These are things like discounts for military service members or employee discounts.
Most of these incentive programs can be looked up by simply doing some research on your local dealership’s website. West Loop Mitsubishi has tons of Incentives on new and used cars to help you get the most from your buying experience.