Dealer Incentives

Dealer incentives are special financial programs provided by automakers to dealerships to boost sales of certain vehicles. These incentives can take many forms, including cash rebates, low-interest financing, bonus payouts for meeting sales targets, or special leasing terms.

Dealers may choose to pass these incentives on to buyers as discounts, or they may retain them as additional profit. For consumers, dealer incentives can significantly reduce the purchase price or monthly payment of a new car, but they are not always advertised openly.

Seasonal promotions, end-of-year clearance events, and slow-selling models often have the most aggressive incentives. Understanding dealer incentives helps buyers negotiate more effectively, as knowing when and where incentives apply can yield substantial savings.

However, incentives vary by region, model, and timing, so research is essential before visiting a dealership. Ultimately, dealer incentives align manufacturer and dealer interests by stimulating sales while giving savvy buyers opportunities to save.