Manufacturer Incentives Explained
Manufacturer incentives quietly determine a large part of a new car's real price. Understanding the main types — and that some go to you while others go to the dealer — helps you negotiate from the true number.
Customer incentives
- Cash rebates — a direct reduction you can take instead of special financing
- Special APR financing — below-market rates from the manufacturer's lender
- Lease cash — support that lowers a lease's monthly payment
- Loyalty and conquest offers — for current owners or owners of a rival brand
Dealer incentives
Dealer cash and stair-step bonuses go to the dealer, not advertised to you — but they expand how low a dealer can profitably price a car. This is part of why the same VIN can be priced differently across dealers.
How to use them
Incentives change monthly and by region and VIN. Rather than tracking every program, let dealers compete on a specific VIN — the strongest offer already reflects whatever incentives that dealer can apply. AsAgreed surfaces that competition directly.