Car buying season is coming up. This summer, you are going to see lots of great deals at your local car dealerships, such as vehicle rebates, bonus cash, and special interest rates advertised. Before you walk into a dealership, it helps to understand what all of these terms mean so that you can negotiate the best offer.
The first thing to understand about a vehicle rebate is that it is coming from the manufacturer, not from the car dealership where you are buying the car.
The manufacturer is offering you a rebate on your vehicle, which means that you will more than likely have to fill out some paperwork in order to get the money from the rebate. The amount of a vehicle rebate can vary greatly, from anywhere to a couple of hundred dollars to a couple of thousand dollars.
The dealership will still get the full price for the vehicle, it is the manufacture of the vehicle who is offering you extra money. Keep in mind that the deal is coming from the manufacturer not the dealership in this instance, so you still have room to negotiate with the dealership for a better deal from them.
Second, you may hear the term bonus cash. For example, "When you purchase a 2018 car, you get $3,000 bonus cash back." Bonus cash is actually similar to a vehicle rebate, just with a more approachable name.
Once again, bonus cash is offered by the manufacturer, not the dealer. That means that the dealer is still getting their fair share of money for the vehicle they are selling.
The one difference between bonus cash and a vehicle rebate is that with bonus cash, oftentimes the dealership will use the "bonus cash" as a down payment on the vehicle or take the "bonus cash" amount off the overall price of your vehicle, so you don't have to wait to get this cash later. Instead, the manufacturer sends the money to the dealership, and the dealership allows you to benefit from the cash back right away.
Special Interest Rates
Third, special interest rates can come from a few sources. The special interest rate may come from the bank that the auto manufacture works with or from the bank or lending institution that the dealership works with.
The one thing to keep in mind with special interest rates is that these interest rates are usually only available if you have a really great score. If you just have a good credit score or even a poor credit score, you are more than likely not going to qualify for the special interest rate. Special interest rates bring customers into the dealership but don't expect to snag that interest rate unless you have a close to perfect credit score.
Before you head down to your dealership to take advantage of all the special offers that they are advertising, make sure that you understand what those offers mean. Understanding what the offers mean will provide you with more leverage as you negotiate the cost of a new vehicle for yourself. To learn more, visit a dealership like Marshall Chrysler Dodge Jeep Ram.