Car Cautions for Incentives, Rebates, Cashback

Auto Rebates, Sales, Cash Back, Returns and Contract Cautions Needed

Sep 20, 2009 Donald Reinhardt

Every month there seems to be a new rebate, incentive, cash back, discount, low interest or no interest, or return program to induce consumers to buy new. Beware!

Being a good, careful consumer is more important now than ever. Budgets are squeezed tight, money does not buy as much as it used to as inflation creeps steadily upward, and job security is not quite the same. This is a realistic assessment of where many find themselves today. Nevertheless, if one needs a "new" car, or other vehicle, wise decisions can help avoid immediate and future problems. Here are some thoughts to help make a successful new vehicle purchase.

Car Cautions for Incentives, Rebates, Cashback, Get the Details First

There are several very reputable sources for car pricing and rebate programs. Edmunds has been an outstanding and number one source of automotive information and Consumers Reports has detailed, referenced long-term, owner evaluations for each model and make vehicle that includes: performance, reliability and durability. Make sure that all the details of the particular cars of interest are understood and known. Once these details of the cars and various manufacturers' requirements and offers are known a consumer can move forward and look at virtually all the incentive programs.

Car Cautions for Incentives, Rebates, Cashback, Contract Deal Strategies, Methods and Cautions

Here are five important things to remember about sources of information on rebates, cash bonuses, discounts, no or low interest rates and everything else:

Do not consider purchase of a car, if a new car is not needed. New cars depreciate about 20-25% as soon as they are contracted for and driven off the lot by the purchaser. The car is then used, not new.
Know all the available packages from all potential car or truck types that are of interest. This is important, since if one does not like a product or type vehicle, it is probably not the one to buy.
Choose good, low-mileage, more recent used cars over new cars whenever possible, since depreciation has already been taken out of the original purchase price and lowered the car value.
Negotiate from strength rather than weakness. Know all the pros and cons of a vehicle, know all major sales techniques, and tell the dealer to make their best price offer right up front. If they will not, offer a fair but low starting price, and be prepared to leave.
If negotiations are not moving, tedious, redundant, or harsh, issue a warning that this customer will soon be gone. Back it up, if nothing positive happens soon, by moving up, on and out of the office and showroom.

The types of programs offered throughout the end of this year and into next year are expected to vary greatly. A brief look at each actual and potential program is helpful:

Car Cautions for Incentives, Rebates, Cashback, Think Well

GMC Satisfaction Guaranteed, 60 Day Program, Is one of the newest, untested programs that will be consequential for both consumer and manufacturer. This is a tightly-structured and controlled program that seems weighted in the manufacturer's favor with some certain benefits for the consumer. Most 2009 and 2010 GMC cars and trucks (except medium-duty trucks) are covered by this plan. Specific contract required, return must be within 31-60 day window, normal wear and tear acceptable with a 4,000 mile limit and any damages under $200; $500 rebate available instead of Satisfaction Return Program. Delivery must be taken by 11/30/09. Returns only to original dealer, by authorization document provided by General Motors and sales, license, registration and insurance documentation. These are among the important restrictions and limitations.
Rebate Programs are always popping up, and they usually last for a few weeks to months. Toyota is offering "Jack for Junkers" and Chrysler, Ford, General Motors, Honda, Hyundai, Kia, Mazda, Mitsubishi, Nissan, Subaru, are among those offering other end-of-year discount and rebate programs for 2009 and some will extend into 2010. The rebates for 2009 cars range between 2-5 K, with available low interest loans of 2.9-3.9 %. The lowest interest rates depend on the consumer's credit ratings. Also, always remember a new car driven off the lot depreciates by a minimum of 10% to as high as 25 %.

Car Cautions for Incentives, Rebates, Cashback, Conclusions and Summary

Some rebate and loan programs are simple and very straightforward. Others, like the 60-day Satisfaction Guarantee of GMC are very detailed, limited and restricted. Remember also the specifics of the standard warranties and guarantees associated with the vehicles of interest – compare and contrast all of these. Choose wisely and carefully.

Resources

Frequently Asked Questions. General Motors Corporation, Detroit, Michigan.

The copyright of the article Car Cautions for Incentives, Rebates, Cashback in Personal Budgeting/Finance is owned by Donald Reinhardt. Permission to republish Car Cautions for Incentives, Rebates, Cashback in print or online must be granted by the author in writing.