What are Car Buying Incentives, Really?

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Teen's first car after graduation
Such a deal!
When looking to buy a new car, we've all been barraged by offers and ads talking about cash back, customer rebates, and finance incentives. But what's the difference between cash back and incentives? What are car buying incentives, really? Never fear, Lithia Motors is here to separate and explain what these various money saving techniques are all about. Will they save you money? You bet!
A well-informed buyer can pay less for a vehicle by being aware of new car incentives, rebates and discounts. Knowing about these and using them to your advantage can possibly save you thousands of dollars.

Factory Incentives & Cash Back.

First off, customer rebates and factory incentives from automakers are marketing programs that are created to get customers to buy new cars. We all know that. These various programs come in different forms. Many are heavily advertised, while others have to be ferreted out to find them. But all of these can be used to save you some serious money on a new car purchase.
Car manufacturers have a couple of different avenues to offer financial support to dealerships when marketing new cars. Automakers will often run special incentive programs at different times of the year to boost sales. These programs are used to stimulate car sales and they include customer cash back rebates from the automaker as well as manufacturer to dealer incentives. There are also finance incentives, lease deals, loyalty programs and bonus cash. All of these incentives can help you buy a car for less money. Here's what you need to know about how these programs work. 
Manufacturer to the Consumer
The following are programs that come directly from the manufacturer to the consumer. Sometimes more than one of these deals are available to you at the same time. They include low interest financing, special lease programs, and cash back rebates. Some automakers also offer:

  •  Military discounts
  • First-time buyer incentives
  • Special deals for college graduates and more
There are even "loyalty reward" incentives for buyers who are sticking with a particular brand of car and "conquest" bonuses for buyers who are switching from a competitor's vehicle. Amazing, right?
Secret Incentives
Each dealership can negotiate cash incentives that come from the manufacturer. These are sometimes referred to as "secret incentives." Dealers don't have to offer these to you. Finding out if the specific car you want to buy has a customer rebate can be tricky. You should definitely ask the dealer about all the incentives that are available to you. 

Imagine if you are looking at the same make and model of car at two different dealerships and one is offering a $1,500 cash rebate while the other isn't. Lithia Motors can help with that. 

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Read the Fine Print

The bottom line with all special rebates, incentives and special lease deals is to be sure to read and understand the fine print of your contract. Make sure you understand what you are paying for, what the interest rates are, and what the "hidden" fees might be, before signing on the dotted line. 

Like special incentives that offer low interest rates, special lease deals are usually reserved for customers with really good credit.

Let Lithia Help.
At Lithia Motors, we can help you to get the very best deal on pretty much any make and model of vehicle. Use our Incentives Page to find vehicles that include various incentives that could save you some big money. Discover the rebates and cash back incentives that are available to you right now.