Incentives and Rebates are programs offered to consumers or dealers to stimulate new car sales. The four most common programs are Cash Rebates, Low Interest Financing, Special Leases and Marketing Support.
Cash Rebates, Low Interest Financing and Special Leases are provided directly to the consumers. Eligibility requirements may vary, and not all consumers may qualify.
Marketing Support is provided directly to the dealers, and the benefit may or may not be passed on to consumers. Marketing Support programs take many forms, but the most common type is Dealer Cash.
Please note that incentive programs are subject to change at any time by manufacturers. Edmunds publishes such changes on a daily basis; however, there may be a short delay between the time a manufacturer discloses a change and the time we publish the update.
For definitions of any Incentives and Rebates terms, please see the glossary below:
Cash Rebates
Rebates provided by the manufacturer directly to the customer at the time the vehicle is purchased to lower the final price of the vehicle. Consumers usually may elect to either receive this amount in cash or to credit the rebate as part of the vehicle's down payment.
Dealer Cash Incentives
Are typically paid to the dealers by the manufacturers to stimulate sales momentum or reduce inventory pressure for certain vehicles. There are many variations, but the most common dealer cash incentive structure provides a cash credit to the dealer upon the sale of a vehicle in the program. In other cases, dealers earn cash bonuses when they achieve sales volume targets. However, there are also programs where dealers earn the incentive upon purchasing the vehicle from the manufacturer. These programs vary widely, but in all cases the Edmunds.com True Market Value Prices have taken these cash incentives into account.
Finance Rate (APR)
For a vehicle purchase, the cost of credit (i.e., the interest rate) expressed as an annual rate.
Incentives and Rebates
An auto industry term that encompasses all methods by which manufacturers attempt to stimulate vehicle sales and leases by reducing the net cost to consumers without reducing the vehicles' MSRPs, which includes customer rebates, dealer cash incentives and special leases.
Low-Interest Financing
A loan offered by the manufacturer's captive finance company at a below-market interest rate. Eligibility is normally determined based on the customer's creditworthiness.
Marketing Support
An auto industry term that describes programs that manufacturers provide to stimulate sales or assist dealers in the advertising and marketing of their vehicles. The most common program is Dealer Cash Incentives.
Special Leases
Also referred to as a "subsidized lease" or "subvented lease." A form of "incentive and rebate" that consists of a vehicle lease offered by a vehicle manufacturer in which the amount of the monthly payment is reduced below that then offered by independent leasing companies (the cost of which is absorbed by the manufacturer). Typically this is accomplished by using a higher residual value or a lower interest rate, or both.