Factory-To-Dealer Cash Incentives for Best Car Deals

factory to dealer incentivesCar companies help dealers sell cars by offering incentives. Incentives come in a variety of forms which might include direct-to-customer rebates, low interest loans, special lease deals, and factory-to-dealer cash. In any given month, a car company might offer all, some, or none of these incentives on any particular car model or style.

Factory-to-dealer incentives are unique because they are “secret” and not visible to customers like other incentives that are heavily advertised.

Sometimes called “marketing support”, factory-to-dealer cash travels from a car manufacturer directly to a dealer when a vehicle that has that incentive is sold. In effect, it is a rebate to a dealer.

A dealer can use these  manufacturer’s rebates in almost any way he wants that helps sell the vehicles on which the incentive applies. He might, for example, spend some of the money on a special sale event, advertising, or TV commercials. However most if not all of the money will be applied as a price discount to create attractive sale prices on selected vehicles.

Dealers might advertise (or not) the special prices made possible by factory-to-dealer rebates. Some luxury brand dealers prefer not to heavily advertise “sale” prices to avoid the brand being viewed as a “discount” brand. They prefer to offer the discounts face-to-face with customers, or let the customer “negotiate” for the discount. It makes the customer feel better if he thinks he’s the only one getting the discount.

Factory-to-dealer rebates are generally larger on hard-to-sell car models or on last year’s leftovers, but are not uncommon on even the latest models if the car company is trying to get off to a fast sales start on those models.

If you find a vehicle you like that has a nice factory-to-dealer backed discount, you should also expect your dealer to kick in an additional discount of his own — manufacturer-backed discount plus dealer-backed discount equals big discount.

When we find large factory-to-dealer and marketing support incentives, we tell you about them on this web site.

You can get free price quotes on any vehicle from Edmunds.comThe quotes will automatically include any cash-back rebates or discounts that are currently available.


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