However, you shouldn’t purchase a vehicle simply because of a rebate. In some cases, your total cost to own could be lowered by several thousand dollars. Rebates are applied to your down payment, your closing costs or your total loan amount. Is an auto rebate a good idea?Īuto rebates are worth looking into if they are available. Search manufacturer deals on new cars - rebates are typically advertised alongside lease deals and special interest rates. Sometimes, you may have to meet a minimum credit score to use it or finance through a certain lender. Be sure to check any qualifications for the rebate.

Sometimes, rebates don’t go to just anyone. In some states, you may even be able to have the rebate applied to the purchase price before taxes, though you’ll need to confirm your state’s rules when requesting a rebate. This means you need to finance less overall, which can save you money upfront and over the life of your car loan.

For instance, you may have to select a certain type of car or apply for financing through the dealership.Īn auto rebate can be sent directly to you but can also be part of your down payment. Rebate offers may last anywhere from a couple of weeks to a few months, and you will have to meet specific criteria to qualify. This doesn’t impact the original car price before the rebate is applied - you can and should negotiate with the dealer before discussing rebates - but it will lower the amount you pay for a vehicle. How do car rebates work?Īuto rebates are special promotions that offer buyers a few thousand dollars off the price of the car. You may also need to select a certain trim, usually one of the higher-end options, in order to get a rebate. This serves as motivation for you to purchase the vehicle in the specific scenario that the dealership has control over.īut since rebates are offered by manufacturers, you will need to go to a dealership that works directly with the manufacturer to qualify. What is a rebate on a car?Īn auto loan rebate is an incentive that gives you cash back in exchange for purchasing a car. Before signing buying a new car, be sure the rebate will actually save you money. However, manufacturers and dealers structure their incentives differently. Rebates give you money back on your purchase, which will lower your total loan amount. With car prices this high, rebates can be a helpful way to save. That’s still 21 percent higher than the same month in 2020. New cars averaged $47,936 in October 2023, according to Kelly Blue Book. While car prices are evening out, they still remain quite high. Generally, if the rebate is for a car you were looking for any way and you can meet the requirements, it can be a solid way to save money on a car. A car rebate is a flat sum taken off how much you pay for the car, often totaling thousands of dollars.Ī rebate may only apply to more expensive trims, if you finance through a certain lender or possibly even meet certain requirements like minimum credit scores.

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