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Incentive programs

Even under the best conditions, buying a car can be a complex process. Be cautious with all the incentive programs available that can keep you from seeing clearly and focusing on the exact product you want. Be aware of the following facts about incentive programs.

• If a price reduction or a low interest rate seems like a good enough incentive to you, do not assume the dealership can't still do better.
• Incentives exist to keep consumers from negotiating for a better price. They allow dealerships to sell cars at prices they would never be able to ask otherwise.
• Read the fine print. Nothing is free! Someone has to pay for those 0% financing rates, and as a rule, that someone is the consumer.
• It is possible that the lowest rates apply only to the shortest terms (usually 3 years). For longer terms, the rates tend to climb.
• It is fairly common to see manufacturers exclude their most popular models from incentive programs. The incentives thus allow them to liquidate certain models. Be sure to ask the dealer if the best rates apply to the vehicle and financing term you are interested in.
• Look through the ads in your local paper to see what is being offered in your area.
• If you already have a car and want to trade it in, wait until the last step of the transaction to mention it. You must first negotiate the price for the one you want to buy. Otherwise, it is the dealer who establishes a price based on the trade-in, rather than allowing you to make the decision to include it or not, which could be to your disadvantage.