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.
Tax Credits can be used to reduce consumers’ tax bill for the year in which a vehicle was purchased. Additional state, utility, and other municipality rebates may be offered to consumers in the form of cash rebates or statement credits for energy-efficient vehicles or related home infrastructure updates.
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:
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.
Charger Installation Rebates
Typically offered by local utility companies, charger installation rebates are either a direct cash refund or utility statement credit for installing electric vehicle charging equipment at your home. The rebate may have restrictions on the type of charger that can be installed in order to receive the full amount.
EV Charging Offers
An offer usually provided by an EV charging network that has partnered with a manufacturer in order to provide new EV purchasers with either a specified number of free charging hours or a similar charging network credit.
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.
In order to promote energy-efficient vehicles, states, cities and other municipalities may offer cash rebates for qualifying vehicles. Local EV rebate programs typically have eligibility restrictions on the vehicle as well as the seller and purchaser. These programs do not reduce the purchase price, but are separate cash rebates or credits made available after purchase. Funding for the programs is typically limited, and programs may be discontinued after all funds have been consumed.
EV Tax Credits
The most popular tax credit is the federal EV tax credit offered by the IRS, but some states offer their own tax credits. Tax credits typically have eligibility restrictions on the vehicle as well as the seller and purchaser. The credits can be claimed when filing your taxes for the year in which the vehicle was purchased; or, starting in 2024, you may be able to transfer the federal EV tax credit to your qualified dealer at the point of sale and effectively turn the credit into a discount on the car. Tax credits reduce the tax bill that you owe to the government, so your tax bill needs to be larger than the tax credit amount to receive the full allowance.
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.
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.
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.
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 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.