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The Truth Behind Auto Rebate

No idea is as appealing as the one which suggests that the solutions to most people’s car buying problems lie in the auto rebates.

Auto rebates are, basically, price discounts. On its general concept, auto rebates are part of the over-all marketing strategy of the manufacturer. This is also one way of promoting their sales to the public.

Auto rebates are those that customers can automatically use when they buy the car that they want. Normally, auto rebates can be given by the car manufacturers either to the dealers or directly to their customers.

To know more about auto rebates, here is a list of some useful information that you can use in case you want to avail of rebates available in a car’s package deal.

1. You should know the difference between customer rebates or cash rebates and dealer incentives.

Most people are confused with these two kinds of auto rebates. But people should be aware that these two are not the same.

Customer rebates are car rebates that are directly given by the manufacturer to its customers. In most cases, the customer would prefer to deduct the rebate on its down payment or you it as a down payment instead.

On the other hand, dealer’s incentives are those that are given by the manufacturers to their dealers.

By knowing the difference between the two, you will be able to analyze the basic concept of rebates.

2. Auto rebates are really advantageous to those who fall short with their budget for buying cars.

Auto rebates are really great especially if the buyer is really tight on cash. With auto rebates, you can avail as much as 40% cash backs and incentives. Rebates are not just special deals but really great discounts.

3. Time it right

Even if many people are claiming the feasibility and benefits of auto rebates, you will never realize it unless you have bought the car during the time when the rebate is still in effect.

So, in order not to miss the rebate, it is best to forego your car purchase until such time that the auto rebate is already in effect.

4. Cars with rebates may vary upon the discretion of the manufacturer or car dealer

This means that auto rebates are not permanent and the cars that will be included in the rebate are selected.

Usually, the cars that are included in the auto rebates are sporty cars, subcompact and compact cars, SUVs, large cars, midsize cars, small vans, and pickup trucks.

So, better check your dealer or the manufacturer first if the car that you want to buy is included in the list of those that are included in the auto rebate.

5. Be wary on auto rebates

Not all auto rebates are created equal, and not all auto rebates are for real. This means that there are instances wherein the rebates that were deducted from the prize of the car are usually gained back by the manufacturer or the car dealer.

6. Do some research.

It is worth knowing what you will be paying for. Do not rely solely on the auto rebate that you will gain. Calculate first the amount of your car’s price and the deductions that you will have on them.

When you already know the situation, you will have more confidence in claiming that what you have gained is, indeed, a true blue auto rebate.

7. Do the math!

The value of an auto rebate is dependent on the computed value of the car’s price and the rebate. This means that buyers should not focus on the auto rebate alone. They should be smart enough to compute the difference between the actual price of the car and the auto rebate.

For example, an auto rebate of $500 when applied to a car with $18,000 value would not be very valuable and workable if it is applied to a $30,000 car.

Boiled down, auto rebates are effective and feasible only when it is in effect and when it really serves its functions.

New Car Buying Tips
- You cannot go without auto insurance, it is illegal, and disrespectful to others on the road, who are relying on you having insurance should you cause a wreck. See if you can get in on your parent's auto insurance, of if there is an umbrella policy protecting the house and all cars. Either way, make sure you get full coverage including with high coverage amounts.
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