What Are Customer and Dealer Incentives?

For the most part, car prices are steady regardless of where you go to buy. If you’ve already got a specific car with specific features in mind, it’ll probably cost around the same amount at two separate dealerships. However, this doesn’t mean it won’t make a difference where you buy your car. Special deals and lower prices come and go. Customer incentive and dealer incentives can affect these deals, which can change where you buy your vehicle.

Dealer Incentives

Dealer incentives are perks offered to dealerships for buying cars from manufacturers. These perks are intended to reduce the dealer’s final cost of a vehicle from the factory, which will mean more profit for the dealership when they sell it and possibly even discounts and perks to their customers as well.

Manufacturers typically offer these incentives on a regional basis in order to promote the sales of specific models in specific regions. These factory-to-dealer incentives often kick in after a certain sales goal is met, which means the more a dealer sells of a specific model, the more they get a break on the overall cost of that model.

Customer Incentives

Customer incentives are perks offered to customers for purchasing a vehicle from a dealership. In most cases, dealer incentive look like cash-back rebates, low-interest financing offers, or specific perks offered directly to car buyers.

These incentives make the car buying process easier on the car buyer, enabling them to purchase the car they really need. You’ll see a lot of no money down offers which enable car buyers to leave with a car right away, paying only in monthly installments. This kind of incentive allows car buyers to bypass having to save up a lump sum of money in order to get their hands on a new car. Dealers may also offer more attractive interest rates that lower the overall cost of the car. Manufacturer warranties are often included with a new vehicle, which boost the long-term investment into the customer as well as upholds the resale value of their vehicles—it’s a win-win. Maintenance waivers are also often included in a deal struck between dealers and buyers.

Hubler Automotive maintains great relationships with all of our dealers, which often enables us to offer better incentives for our customers. If you’re interested in getting your hands on a new car today, check out drivehubler.com for the customer incentives we’re currently offering or come to any of our dealerships to speak with a sales representative today!

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