Just as grocery stores offer coupons to boost sales, car manufacturers and dealerships provide discounts via rebates and incentives to push new vehicle inventory. And while rebates and incentives are a good way to lower the drive-away price on your new vehicle, choosing the ones that best cater to your needs can be a cumbersome endeavour. Don’t fret—we’ll soon have you navigating these new car incentives like a pro.
1. Cash Incentives
Cash incentives are the kings of new car incentives, as in most cases, these provide customers with the highest potential savings on their new vehicle purchase . Cash incentives are subtracted directly from the selling price of the car, or MSRP, and lower the total drive-away price for the vehicle. These incentives are openly advertised to the public and do not require any additional negotiation to receive them. The catch, however, is that consumers who opt for cash incentives have to be willing to purchase their new cars outright, without the help of manufacturer finance and leasing options. That said, a little known fact is that most cash incentives are actually combinable with third-party financing options offered by most banks and lending institutions, which in some instances can actually result in a lower monthly payment compared to financing with the manufacturer.