What is a rebate or incentive?
A rebate is a reduction in cost that is refunded to you by the manufacturer after the purchase. Usually, a rebate is only offered to buyers who pay cash for their new cars (or bring their own financing). The good news is that there are generally no eligibility restrictions on rebates – if you can pay for the car, you’ll get the rebate. Note: in many states, you’ll pay taxes on the full purchase price, not the purchase price minus the rebate. An incentive is a reduced lease or finance interest rate, offered to you by the manufacturer’s financing division. Finance/interest rates are also referred to as an annual percentage rate (APR). The bad news is that the incentive interest rates are subject to eligibility restrictions, meaning that if you have poor to mediocre credit, then you won’t be eligible for the best rates. In these cases, you might be better off getting a loan somewhere else and taking the cash rebate from the dealer (if there is one). Sometimes, rebates and incentive intere
