What Are New Car Deals?
New car deals are savings on the purchase of a vehicle. Deals and incentives come in many variations, such as cash rebates, dealer discounts, low-interest financing deals, leasing incentives, trade-in incentives, government rebates, manufacturer rebates, loyalty rewards, and rewards for switching brands. You may also qualify for things like employee pricing, green vehicle incentives, or specific affiliate discounts like military or student discounts. However, not everyone qualifies for these programs.
The way these programs work is unique to each specific offer. Some can be stacked with other incentives for a bigger discount, but most stand alone. For example, you can often choose between "cash on the hood" or a low-interest rate financing deal, but you cannot typically get both.
New car deals are structured in a few ways, which are typically a combination of pricing strategies, dealer or manufacturer incentives, and financing options. These deals always start with the "sticker price" or the manufacturer's suggested retail price (MSRP).
The MSRP is rarely what a consumer pays. Sometimes, you may see the actual price of a vehicle is higher than MSRP due to dealer markups, or lower due to the presence of incentives. MSRP is also typically larger than the price the dealership pays for the vehicle. Since there is a gap between MSRP and actual vehicle cost, some dealerships are willing to play with the numbers to help drive sales.
When Do New Car Deals Happen?
New car deals can happen at any given time, and there is typically an incentive to be found no matter when you shop. In reality, most deals are presented to consumers at the beginning of a month.
However, certain times of year can signal more deals ahead than others. You're looking at major shopping holidays like Christmas, Black Friday, or times of the year like tax time to see better deals. You may also find that the end of a particular model year vehicle may see better deals to get the remaining stock to move before a new model year comes out.
Key Types of New Car Deals to Look For
Incentives for new cars come in various forms, from cashback to low-interest offers and everything in between. Sometimes, dealers are offered cash by the manufacturer and pass those savings on to you. Here are a few things to know about some of the kinds of deals you may see.
Cash Rebates and Manufacturer Discounts
Cash rebates come in many forms when it comes to buying a car. The most common form of a cash rebate is known as Customer Cash, and this is when you're offered a specific amount back for purchasing a specific vehicle with specific terms. The amount is taken off the price of the vehicle and translates to savings, but you don't actually get cash back.
You can also often qualify for manufacturer-specific rebates, which reward you with money off the total cost of your vehicle for either being a loyal customer or for coming to one brand from another. These are called loyalty and conquest rebates.
In some areas, you may experience regional offers. In these cases, specific vehicles are offered with a special incentive in a specific place to help that vehicle move. This often happens when a model isn't selling well in a certain area of the country.
Students, graduates, and military members may also qualify for discounts of between $500 and $1,000, depending on the manufacturer.
There is a specific type of cash rebate also known as Dealer Cash. This is money that a manufacturer is giving to the dealer to help alleviate processing costs, and sometimes the dealership passes those savings on to you.
Special Lease Offers
Leasing has traditionally offered a way to achieve lower payments than a loan. Another big leasing benefit is that you have the flexibility to return your car after the lease is up. If you like upgrading your vehicle and aren't excited about having the same vehicle for a long time, leasing could make sense for you.
However, as with interest rates on a loan, the lowest lease rates are often reserved for those with top-tier credit. In Hyundai's case, that can sometimes mean a minimum credit score of 720. You may even come across lease deals that assume a FICO score over 740. That's out of reach if you have bad credit.
Having said that, manufacturers tend to offer a wide range of incentives, though it'll often mean having a price much higher than what you'll see advertised. These types of incentives change monthly and can sometimes favor certain types of vehicles over others. Be sure to ask your dealer for a customized lease.
When it comes to the price, be sure to pay attention to the monthly payment, term, and the amount due at signing. The amount due at signing for a lease will often include the down payment, the acquisition fee, and your first month's payment. Most leases assume 10,000 miles a year, though this can be customized.
When you customize your lease, you make it easier to prepay for your mileage rather than be faced with overage charges down the road. The mileage overage charge for a lease may be 20 cents per mile or higher, so be sure to leave adequate room in your estimate. The underlying residual value will impact your price, too.
The residual value is determined by the lender and aims to predict the value of your leased car once the contract is up. It's common for cars with higher residual values to be better deals when leased. Conversely, cars with low residual values may be more expensive than you think unless the manufacturer has rebates.
Government Incentives
Government incentives, like the $7,500 rebate that some EVs qualify for through September 30, 2025, are another way to save cash by getting a rebate for a specific vehicle or type of vehicle. Unfortunately, there are a lot of variables with a rebate like this, so it's important to know what the vehicle you're purchasing qualifies for before diving in. Some vehicles only qualify for a part of the rebate, and some foreign-built EVs don't qualify at all.
Low or 0% APR Financing
Zero-interest financing continues to make a comeback and can save buyers thousands of dollars in interest. On a $40,000 vehicle, a 7-year loan at a rate of 10% would cost more than $53,000 before factoring in taxes and fees. With 0% financing, the same car would cost $40,000.
The biggest downside is that not everyone will qualify. That's because 0% financing often requires above-average credit. For example, Kia models sometimes have 0% financing but require a FICO score over 720. This may diminish your chances of getting interest-free financing.
Trade-In Deals
Some brands have special incentives called trade-in assistance that can help save you additional money when buying or leasing. If you have an existing vehicle to trade in, this could help get you anywhere from $500 to $2,000 in savings you wouldn't be able to get otherwise.
If you're underwater on your car loan, manufacturer incentives like trade-in cash offers may help make it easier to get rid of your current vehicle. Brands that tend to offer trade-in assistance include Ford, Dodge, Jeep, and Mitsubishi. Be sure to read any fine print about eligibility.
Non-Cash Incentives
Some incentives don't come in the form of cash. Rather, they come in the form of perks such as free maintenance, upgrades, or extended warranty coverage. These non-cash incentives can also translate to big savings on things you need for your vehicle or your peace of mind. These can be manufacturer incentives or specific to a dealership.
- Aftermarket Warranty Coverage: This is additional coverage beyond the standard vehicle warranty for no additional charge. It can provide peace of mind in case something happens after your original service contract expires.
- Service Perks: These can include free oil changes, tire rotations, or inspections for a certain number of miles or period of time.
- Vehicle Equipment Upgrades: This could mean getting into a higher trim without the extra cost, or include dealer add-ons like tech packages, roof racks, and floor mats at little to no charge.
- Deferred Payment Plans: This is a type of savings where you often see "no payments for 90 days" offered. These deals delay when you have to begin making payments.
How Do I Negotiate a Better Price for a New Car?
Negotiating a better price for a vehicle can sometimes be as easy as doing your research. Often, dealers and manufacturers advertise their discounts and incentives in order to entice buyers to shop with them. Additionally, using a website like CarsDirect or other automotive sites, you can research current prices and deals on vehicles in your area.
If you plan on negotiating a better price on your next car, you should be prepared with things like a higher down payment, a list of offers from other dealers or lenders, and the prices you'd like to see. Remember, few things are rarely set in stone when it comes to an auto loan contract, but the final say is up to the lender.
FAQs
What car has the best rebates right now?
The best rebate right now depends on your situation and what you qualify for. Some manufacturers are offering large amounts of cash off certain models, like Jeep and RAM. Others, like VW and Kia, offer 0% financing deals for well-qualified buyers. It is worth it to weigh the different offers available against your needs to find the best offer for your situation.
How do new car deals vary by dealership?
New car deals vary from dealer to dealer since no two vehicles and borrower situations are the same. The price that's offered on a car is known as an MSRP, or manufacturer suggested retail price. The price isn't set in stone, and some dealers may offer incentives that other dealerships don't.
Can I negotiate new car deals with zero down payment?
Zero-down auto loans are often offered as a special incentive for certain vehicles or for certain good credit borrowers. Zero-down deals don't typically apply to everyone, and can sometimes be difficult to find.
How can I get the best new car deal with a low credit score?
The way toward a new car deal as a low credit borrower lies in using the right dealership for the job, and knowing which incentives don't require a good credit score to qualify. Things like loyalty and conquest incentives, cash-back, and dealer cash offers are usually more attainable as a low-credit borrower. With a poor credit score, you're typically not going to qualify for things like low APR deals or leases.
Are 0% APR car deals really worth it?
Zero percent APR deals can be worth it if you qualify. These deals allow you to pay no additional charge for financing a certain vehicle. This is a great way to save money overall. Be mindful, however, that a low credit borrower typically won't have this option.
