THE DEFINITION OF A REBATE:
NOUN, A LOWERING OF A PRICE.
SYNONYMS: ABATEMENT, DEDUCTION,
DISCOUNT, MARKDOWN

WHAT IS A RETAIL REBATE ?

A RETAIL REBATE IS A DISCOUNT
OFFERED FOR A RETAIL PURCHASE

A RETAIL PURCHASE CAN BE A
CASH OR FINANCE TRANSACTION

OCCASIONALLY,
THE REBATES ARE HIGHER
IF YOU FINANCE THE VEHICLE
THROUGH THE MANUFACTURERS
FINANCE ARM (GMAC, TMCC etc.)

IF YOU ARE PAYING CASH
SOMETIMES IN ORDER TO GET THE
LOWEST SALE PRICE, THE DEALERSHIP
ENCOURAGES THE CUSTOMER TO
FINANCE A SMALL AMOUNT OF MONEY
TO QUALIFY THEM FOR THE EXTRA
REBATE AND THEN IMMEDIATELY
PAY OFF THE LOAN.

THERE ARE MANY DIFFERENT KINDS
OF REBATES AND EACH ONE IS A
DIFFERENT AMOUNT OF MONEY

IT CAN BE VERY CONFUSING
BUT THERE IS A SOME SANITY
TO THE REASON THE VEHICLE
MANUFACTURERS OFFER SO MANY
DIFFERENT TYPES OF REBATES.

THE AMOUNT OF REBATE IS IN DIRECT
PROPORTION TO THE INTEREST RATE
BEING OFFER FOR EACH
METHOD OF ACQUIRING THE VEHICLE.

A CASH SALE HAS NO INTEREST RATE
AND IS VIEWED BY THE VEHICLE
MANUFACTUER AS AN ORPHAN SALE.
THE CHANCES OF SELLING YOU
ANOTHER VEHICLE IS MUCH LESS
THAN IF YOU FINANCED OR LEASED
THROUGH THE MANUFACTURER.
THE RESULT CAN EASILY BE A MISSED
OPPORTUNITY TO SAVE MONEY.

A LEASE USUALLY HAS A VERY
LOW INTEREST RATE AND A MEDIUM REBATE AMOUNT. THERE IS A DIRECT CONNECTION BETWEEN THE LEASE INTEREST RATE AND THE REBATE.

THE LOWER THE INTEREST RATE,
THE LOWER THE REBATE.
MEANING, BECAUSE YOU ARE
BENEFITTING BY RECEIVING SUCH
A LOW INTEREST RATE ON THE LEASE,
 THE REBATE WILL BE LOWER THEN
OTHER METHODS.

THIS SAME REASONING ALSO APPLIES
TO THE LOW A.P.R. RETAIL FINANCING
WHICH IS OFFERED BY MOST
VEHICLE MANUFACTURERS. WHEN
0.9% A.P.R. IS OFFERED YOU WILL
USUALLY FIND THE REBATE MUCH
SMALLER THAN THE REGULAR RETAIL
REBATE BECAUSE YOU ARE BENIFITTING
FROM THE LOWER FINANCE RATE.

REGULAR RETAIL FINANCE
 (NOT LOW APR) THROUGH
THE VEHICLE MANUFACTURER
USUALLY HAS A GREATER AMOUNT
OF REBATE BECAUSE IT IS IN THE
BEST INTEREST OF THE VEHICLE
MANUFACTURER TO STAY ATTACHED
TO YOU IN SOME WAY TO HOPEFULLY
SELL YOU ANOTHER VEHICLE IN THE FUTURE.

EVERY KIND OF REBATE IS EXPLAINED
SO CONSUMERS UNDERSTAND EXACTLY HOW MUCH THE VEHICLE COSTS THE DEALERSHIP TO PURCHASE FROM
THE MANUFACTURER.