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During the Super Bowl of 1975, car incentives were used for the first time and have been used by car dealers ever since. The two main types of car dealership incentive programs are customer incentives and dealer incentives. Here is a breakdown of car dealership incentives:
These incentives are very well received by the public. Sometimes the interest rate offered is as low as zero percent. However, the rate the buyer is offered will depend on their credit score.
Around a quarter of buyers choose to lease their vehicles. Special deals usually offer lower interest rates or cash back. Before accepting a leasing deal, a consumer will consider the down payment, length of lease, allowed yearly mileage and the monthly payment.
Cash Back Rebates
These are used extensively among car dealers and consist of sending cash directly to the buyer from the car maker. Normally, you will not get a check, but the dealer will lower the purchase price of the car.
Customer Loyalty Incentives
Loyalty rewards are offered by car manufacturers for customers who have bought the same brand of car in the past. Sometimes the car maker will offer a reward for first-time buyers to lure them away from the competition.
Cash Incentives for Certain Customers
These incentives reward a certain section of the population, such as first-time car buyers. Other groups may include members of the military or recent college graduates.
Dealer Cash Rebates
These are rebates from the car maker that go to the dealer instead of the customer. Typically the dealer passes on the rebate to the buyer, which can go very high on luxury vehicles.
These are rewards for dealers who meet certain criteria, such as reaching a sales goal over a certain amount of time. These support the dealership and help it stay in business.