Getting The Most Out Of Incentive Programs

If you're in the market for a new car, dealers will no doubt try to lure you with offers of zero percent financing or manufacturer rebates. But according to a survey by Consumer Reports, consumers are more interested in a good car than a good incentive program. Only five percent surveyed said that incentives were an important factor in their purchase.

But incentives still hold an influence. Sixty-nine percent of those surveyed said that they might wait for a good incentive deal before purchasing their vehicle. If you're waiting for good auto incentive deals, the BuyingAdvice team of experts can help you find them, along with new car buying advice.

So how do you get the most out of incentives? For once, it's good to follow the herd. You're not buying a deal, you're buying a car. So before you ever look at incentives, find out exactly which models interest you. Is it such a great deal if the car ends up being a lemon?

Which brings us to another point. If you find a vehicle that is laden with incentives, the manufacturer is probably desperate to get rid of it. Such vehicles are usually gas-guzzling SUVs with rapid depreciation. They might seem like good buys up front, but can be costly down the road.

Another thing to be aware of is that incentives usually cannot be combined. For instance, zero percent financing and a rebate are usually separate, exclusive deals. However, eighty percent of those surveyed believe that they can be combined. Keep in mind that this is an unusual practice, but not unheard of.

Be sure to be aware of the tricks dealers try to pull with incentives. Don't believe that they can't lower the price even further after a rebate. The rebate is offered by the manufacturer, and the dealer price is still negotiable. And just because the ad said "zero percent financing," that doesn't mean you'll be eligible for it. And even if you are, the loan is often short term, with high monthly payments.

And always read the small print, so you can be aware of qualifications and other caveats.

If you're trying to decide between incentive options, bankrate.com has a guide to choosing between a low interest financing or a rebate. If you don't want to do the math yourself, they also offer an online calculator.

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