10 Steps to Buying a New Car
Step 2: Save Money With Incentives and Rebates
An incentive is simply anything that sweetens the deal on a particular car. Commonly offered incentives are cash rebates or low-interest financing offers. For example, a car might be selling for $25,000 but the manufacturer is offering $4,000 in customer cash, for a price of $21,000. Or, a $25,000 car can be financed for five years at zero percent interest, saving thousands of dollars over the life of the loan.
Check Edmunds.com for the latest incentives and rebates that are available for the car you want to buy. You can also watch for TV and newspaper promotions. But remember that the incentives don't apply to all models and all areas of the country. Furthermore, your credit must be very good to get the low-interest financing. And finally, keep in mind that there are some hidden incentives that are paid directly to dealers to push certain cars. Edmunds.com tracks this so-called "dealer cash," and posts it in the incentives and rebates section as "Marketing Support."
Next: Price Your Car