Who is Getting The Money From Auto Rebates?
Cheap interest rates! Thousands of dollars back! Manufacturers and dealers are pushing these enticing auto incentives, and, if you're a savvy incentive shopper, you may save a bundle. But be warned: Do it wrong, and you'll throw away those savings and even pay more.
Here's what's really happening when it comes to "cash back" promotions, the most popular auto incentive.
Auto Rebates: Who gets the money from it? Automotive rebates sound so straightforward: Buy this car, for instance, and get $3,000 cash back. In virtually all cases, the advertisements you see for auto rebates are real: The manufacturer, not the auto dealer, promises to send you a check after you've bought or leased a particular vehicle. The money, in theory, has nothing to do with the price you may have negotiated on a vehicle.
What should happen: The auto rebate money reduces what you're actually paying for the vehicle. Let's say you've agreed to pay $25,000 for a car. The manufacturer agrees to send a check directly to your home for $3,000 as a thank you. When the check comes, your total cost for your new wheels is $22,000.
What does happen many times: The auto rebate money becomes extra profit for the dealer. For instance, you agree to pay $25,000; they agree to give you "credit" for the $3,000 auto rebate. You should owe them $22,000, but they draw up paperwork showing you still owe them $25,000. You just lost $3,000. And you generally won't see this trick occur because the sleight-of-hand is hidden in paperwork.
How to prevent theft of your auto rebate money: Don't make that gift from the manufacturer a part of your negotiations with the dealership. Negotiate your price on the new vehicle as if there is no auto rebate. And then have the auto rebate check sent directly to you at home. Never allow the dealership to "apply" it to the amount you owe them.
Will this work? It will work every time! And, believe me, you can be sure that $3,000 savings is real when you receive it in the mail.
Automotive Rebates are available nationwide in the following states:
California Car Rebates
Connecticut Auto Rebates
Florida Auto Rebates
Iowa Auto Rebates
Kansas Auto Rebates
Louisiana Auto Rebates
Michigan Auto Rebates
Nevada Auto Rebates
New Jersey Auto Rebates
New York Auto Rebates
Ohio Auto Rebates
Pennsylvania Car Rebates
South Dakota Auto Rebates
Texas Car Rebates
Washington Auto Rebates