A new car rebate is offered to customers from the car’s manufacturer. You will normally hear about these rebates through television and radio advertising, or the manufacturer’s website. These rebates are usually in cash. One way to find out about rebates is by calling the dealership. You may be able to receive a new car rebate if you are a member of the military, a college or university student, a diplomat, or a company that provides driver-education courses. But rebates are not for these people only. When cars aren’t selling, the factor may offer a new car rebate to help boost sales.
Financing incentives, like 0% financing, are often offered at the same time as a cash rebate. You will have to choose which offer is best for you. To do this you will have to figure out if the interest amount you will save is more or less than the new car rebate being offered. If you are making a large down payment, choosing the rebate is your best bet. Once you or someone who knows how has calculated which will offer you the most savings, take the deal that works out best for you.
The dealer may offer you a rebate if the vehicle has been sitting on his lot or in his showroom for more than six months. To find out about how long the car has been at the dealership, you will need to look on the inside of the driver’s side door, where the car’s manufactured date is located. If you notice the date was more than six months ago, try asking the dealer for a rebate. If he wants the car gone, he may just say yes!
Let’s say you get a $1,000 rebate. It is possible to sign that rebate over to the dealer, adding to your down payment. Oftentimes you can do this without paying sales tax on the rebate—it depends on your state’s tax laws.
The size of a rebate will vary. It will probably be anywhere from $500-$3500. The size of the rebate is usually determined by the original cost of the vehicle. The higher the original cost, the higher the rebate.
If you are a recent college graduate, or will be graduating soon, most car companies offer an additional rebate combined with any rebates currently being offered to everyone. These rebates range from $400 to over $1000. Check with the manufacturer to see what they are offering at the time.
So, to find a rebate and other offers, keep your ears peeled, or search online. If you are able to choose the time you buy your car, you may want to wait until the end of each quarter, when dealers are trying to get rid of the cars on their lot. This way you will be able to combine your rebate with other offers that the dealer or the manufacturer may provide. Remember, care rebates aren’t always the way to go. Financing incentives may be the better deal; the only way to be sure is to do the math before you make your final decision.
By Clint Hunter