Car Buying Guide

Car Rebates & Incentives Guide

Manufacturers offer thousands in discounts—but only if you know to ask. Here's how to find and stack every available incentive.

Potential Savings

Average Cash Rebate

$2,500

on popular models

Stacking Potential

$4,000+

combining multiple offers

0% APR Savings

$3,000-$6,000

vs. market rate financing

Types of Incentives

Not all incentives are advertised equally. Some you'll see on TV commercials, others you need to specifically ask about. Here's the complete list:

Cash Rebate

Stackable

Direct discount off the purchase price. Sometimes called "customer cash" or "bonus cash."

$500-$5,000

typical amount

0% APR Financing

Special low interest rates through manufacturer financing. Often can't combine with cash rebates.

0-2.9% for 36-72 mo

typical amount

Lease Cash

Stackable

Reduces capitalized cost on leases, lowering monthly payments.

$500-$3,000

typical amount

Loyalty Bonus

Stackable

Discount for current owners of the same brand. Must show proof of ownership.

$500-$1,500

typical amount

Conquest Cash

Stackable

Discount for switching from a competitor brand. Designed to win you over.

$500-$1,500

typical amount

Military/First Responder

Stackable

Discount for active military, veterans, police, fire, EMTs. Need ID verification.

$500-$1,000

typical amount

College Grad

Stackable

For recent graduates or current students. Usually within 2 years of graduation.

$400-$750

typical amount

Dealer Cash

Stackable

Money paid to dealers to move inventory. Not advertised—ask if any is available.

$500-$2,000

typical amount

Cash Back vs. 0% APR: Which Is Better?

This is the most common choice you'll face. The answer depends on the numbers:

Example: $35,000 Car, 60 Month Loan

Option A: 0% APR
Loan amount:$35,000
Interest paid:$0
Monthly payment:$583
Total cost:$35,000
Option B: $3,000 Rebate + 6.5% APR
Loan amount:$32,000
Interest paid:$5,440
Monthly payment:$624
Total cost:$37,440

In this example, 0% APR saves $2,440. But results vary—always do the math.

Quick Rule of Thumb

If your credit union or bank rate is under 4%, the cash rebate is usually better. If your rate would be 7%+, the 0% APR typically wins. For rates in between, you'll need to calculate.

How to Find All Available Incentives

  1. Manufacturer website: Check the "Offers" or "Incentives" section for your region
  2. CarsDirect or Edmunds: Aggregate current incentives by model
  3. Ask the dealer directly: "What incentives are currently available on this model?"
  4. Check for unadvertised dealer cash: "Is there any dealer cash on this vehicle?"
  5. Ask about affinity programs: Mention military, student, loyalty status upfront

Stacking Incentives: A Real Example

Here's how incentives might stack on a hypothetical $40,000 SUV:

Stacking Example: 2025 Hyundai Palisade

MSRP$40,000
Customer Cash-$1,500
Loyalty Bonus (current Hyundai owner)-$500
Military Discount-$500
Dealer Cash (ask for it)-$1,000
Effective Price$36,500

Total savings: $3,500 before any negotiation on price.

Best Times for Incentives

  • End of month/quarter: Dealers push to hit sales targets
  • End of model year (Aug-Oct): Clearing inventory for new models
  • Holiday weekends: Memorial Day, Labor Day, Black Friday
  • When new generation launches: Old model gets aggressive incentives

Incentives to Be Cautious About

  • "Push/Pull/Drag" trade-in events: The discount often comes from undervaluing your trade
  • Dealer-specific "bonus" cash: Sometimes legit, sometimes covering markup
  • Financing incentives at long terms: 84-month 0% still ties up cash longer

EV Tax Credits: Special Incentives

Electric vehicles have their own incentive structure:

  • Federal tax credit: Up to $7,500 on qualifying new EVs
  • State credits: Additional $1,000-$5,000 in some states
  • Used EV credit: Up to $4,000 on qualifying used EVs

See our EV Buying Guide for complete details.

See Real Transaction Prices

Compare what others paid after incentives were applied.

Browse DealsCheck Your Deal