Finding The Best Deal
Almost every large dealership has some kind of incentives, sales, and discounts available. They do this to either boost the sales of certain underperforming vehicles or to ensure a customer stays loyal to the brand. You’ll most likely see these kinds of deals in the form of cash discounts or low APR rates.
Before going out to purchase, always double check to see what rebates and incentives are active in your area. They can change from state to state and month to month. Don’t get you hopes up for a certain deal until you double check to make sure it exists.
Don’t only check the incentives to your local dealership, see what is going on with as many dealerships in your area as possible. Then you can compare and contrast your deals and see who is making the best offer.
Incentives are not only for the outright purchase of a vehicle, they are also offered on leases. Below are some of the most commonly offered car lease incentives.
A cash back deal is one of the most common deals available. In most cases, these deals are designed to help get certain cars off the lot. If people aren’t leasing them for long enough, they’ll eventually be subject to a cash back deal.
One of the reasons why this type of deal is so common is because you do not have to “qualify” for the offer. You’re only requirement would be to sign the lease by a specific date. Cashback deals can offer you up to $5,000 in rebates, not bad at all.
However, you won’t be getting a bundle of 100s in the mail from your dealership one day. The cashback will show itself as a discount off the purchase price of your lease. Also, check the tax laws of your state, some charge you the full price of the vehicle regardless of the cashback incentive and some don’t.
The second most common incentives are ones that are directed towards taking loyal customers away from other brands. The term Conquest Cash comes from the idea that a brand is winning a customer from their competition.
It works like this: a car brand targeted at luxury car lessees may offer an exclusive cash incentive to consumers leasing other luxury car brands to switch to their brand. Conquest cash incentives typically range between $500 and $2,000.
Conquest Cash is common in car leasing because dealerships know how easy it is to simply continue leasing with your current dealership. However, many customers would probably switch if a good enough deal was presented to them, that’s where Conquest Cash comes in.
The way dealers, and most large companies try to keep their customers is by offering them a loyalty program. You are probably already involved in numerous loyalty programs that generate points the more you use them, this is very similar to how dealership rewards work.
If you have been leasing a vehicle and want to upgrade, you’ll probably be eligible for some kind of loyalty incentive provided by the dealer. However, be sure to check for any Conquest incentives because they may be offering you more.
Some leases can be subsidized because of deals that occur between the manufacturer and the dealership. For example, if a particular model, one that is perhaps taking up too much room, is sold to a dealership at a reduced price, it’s likely they will offer you reduced monthly payments.
The lease is “subsidized” in the sense that someone else is taking on the extra cost, not you. Manufacturers and dealerships are willing to do this because they need to keep a certain amount of vehicles in rotation. When they are not moving off the lot, they create deals around them.
Another way they reduce your monthly payments is by increasing the vehicles predicted residual value. By reducing the residual value, you are on the hook for less costs because the vehicle will hold its value better than other similar models.
At any dealership, there are always deals available. Before signing the first offer you get, do some homework to see what kind of deals are available in your local area. If you need any help with this particular task, please don’t hesitate to reach out to us at carvoy.com.