May 2007
Save money on regional car-price incentives
Don't overlook these regional rebates when buying your next car
Most price incentives on new cars, such as cash rebates or low-interest financing, are nationally based; they usually apply to all buyers throughout the country, and are often advertised on national TV or in nationally distributed publications. More and more auto manufacturers, however, are now offering regionalized incentives that only apply to a specific area. Knowing about these regional incentives can save you hundreds or even thousands of dollars.
Why do automakers offer regional incentives?
Price incentives have become prevalent in the auto industry in recent years. In the past, rebates and special financing were typically used to help the sales of models in low demand. But now it's common to find incentives on even newly introduced models. Incentives, however, are expensive for the automaker, and aren't always needed on a national level. By offering regional incentives, manufacturers can target individual areas in which sales are lower. Some manufacturers offer both national and regional incentives simultaneously, with the regional incentive often being more generous.
How can you take advantage of a regional incentive?
When considering a new vehicle, you should always check if a regional incentive is in effect. It can save you a significant amount, especially if there's no national incentive being offered. Even if there is a national incentive, you could get a better deal by going with the regional version. To help, Consumer Reports' New Car Price Reports now list both regional and national incentives currently in effect. (If you are eligible for both a national and regional incentive you will have to make a choice, as dealers will not let you combine the offers.)
Find out about regional dealer incentives, too.
In addition to consumer rebates and low-interest financing deals, many automakers are also offering their dealers regional incentives. These are behind-the-scenes, unadvertised rebates that the dealer receives for selling certain models. Knowing about dealer incentives can help you gauge the dealer's profit margin on an individual model, which in turn can help you get a better deal when negotiating. Consumer Reports' New Car Price Reports also include any applicable dealer incentives, both national and regional.
How to factor regional incentives into the CR Wholesale Price
Every New Car Price Report includes the CR Wholesale Price for that model, which helps you set a target price for your negotiations. The CR Wholesale Price combines the dealer-invoice price and any national consumer rebates or dealer incentives available. If a regional rebate or dealer incentive is being offered, but no national incentive, you simply subtract the incentive from the CR Wholesale Price. From there, we suggest that you start your negotiation at 4 to 8 percent above the CR Wholesale Price for the vehicle you're interested in purchasing.
Don't overlook these regional rebates when buying your next car
Most price incentives on new cars, such as cash rebates or low-interest financing, are nationally based; they usually apply to all buyers throughout the country, and are often advertised on national TV or in nationally distributed publications. More and more auto manufacturers, however, are now offering regionalized incentives that only apply to a specific area. Knowing about these regional incentives can save you hundreds or even thousands of dollars.
Why do automakers offer regional incentives?
Price incentives have become prevalent in the auto industry in recent years. In the past, rebates and special financing were typically used to help the sales of models in low demand. But now it's common to find incentives on even newly introduced models. Incentives, however, are expensive for the automaker, and aren't always needed on a national level. By offering regional incentives, manufacturers can target individual areas in which sales are lower. Some manufacturers offer both national and regional incentives simultaneously, with the regional incentive often being more generous.
How can you take advantage of a regional incentive?
When considering a new vehicle, you should always check if a regional incentive is in effect. It can save you a significant amount, especially if there's no national incentive being offered. Even if there is a national incentive, you could get a better deal by going with the regional version. To help, Consumer Reports' New Car Price Reports now list both regional and national incentives currently in effect. (If you are eligible for both a national and regional incentive you will have to make a choice, as dealers will not let you combine the offers.)
Find out about regional dealer incentives, too.
In addition to consumer rebates and low-interest financing deals, many automakers are also offering their dealers regional incentives. These are behind-the-scenes, unadvertised rebates that the dealer receives for selling certain models. Knowing about dealer incentives can help you gauge the dealer's profit margin on an individual model, which in turn can help you get a better deal when negotiating. Consumer Reports' New Car Price Reports also include any applicable dealer incentives, both national and regional.
How to factor regional incentives into the CR Wholesale Price
Every New Car Price Report includes the CR Wholesale Price for that model, which helps you set a target price for your negotiations. The CR Wholesale Price combines the dealer-invoice price and any national consumer rebates or dealer incentives available. If a regional rebate or dealer incentive is being offered, but no national incentive, you simply subtract the incentive from the CR Wholesale Price. From there, we suggest that you start your negotiation at 4 to 8 percent above the CR Wholesale Price for the vehicle you're interested in purchasing.
