MANUFACTURER SUBSIDIZED SPECIAL INCENTIVES & DISCOUNTS
The financial tool with the highest potential for saving big $$$ on automobiles is the awareness, understanding and taking advantage of the manufacturer subsidized incentives and discounts. Despite the general public perception that excellent negotiations skills and selecting the right dealership to negotiate withÂ will result in maximum savings, selecting the right automobile which offers the maximum incentives from the manufacturer can result in substantially more savings than spending days and weeks negotiating with multiple dealerships.
OC Auto Consultants financial specialists continually update the OC Auto Consultants financial database with data related to the financial incentives and factory specials offered by automakers. Every single one of the 350 distinct models of automobiles available in the US Market has 4 different categories of factory incentives offered implying that there are 4 x 350 = 1400 different factory specials available in the US market at any given time. Furthermore, these factory incentives may vary from State to State and are time dependent and at generally change weekly or monthly. Thus, our specialists have to continually monitor these incentives in order to help our clients take advantage of the most lucrative incentives available in the market.
The 4 major categories of financial incentives offered by automakers are:
Cash Rebates: The cash that is offered by the factory to the consumer who purchases or leases a vehicle. By law, the auto dealership is required to transfer 100% of this cash rebate to the consumer. The cash rebates may or may not be combined with other factory specials such as subsidized leases or low interest finance rates
Marketing Support: The cash that is sent from the automakers to dealerships in order to assist the dealerships in selling their vehicles and moving their inventory. The dealership may transfer 100% or a smaller percentage of this cash to the consumer. Marketing support cash may or may not be combined with other factory specials such as subsidized leases or low interest finance rates
Low Interest Finance Rates: Automakers often offer low interest finance rates as low as 0% on select automobile models. The terms of these very low finance rates are often very specific, for example if 0% interest rate is offered on a certain model, the maximum term might only be 36 months and if the consumer decides to finance for 60 month, that interest rate might escalate to 1.9% or 2.9%. Furthermore, the low interest rates offered by automakers generally require above average credit scores and often tier-one credit scores. As a result, the majority of consumers do not qualify for the lowest interest rates offered by automakers.
Factory Subsidized Lease Specials: Automakers often offer factory-subsidized lease programs on select vehicles. These lease programs generally have very specific terms (duration of lease, mileage allowed) and down payment requirements. At times, these lease programs are so exceptional that the consumersâ€™ total amount of lease payments for the duration of the lease is less than the depreciation of the specific vehicle, thus putting the consumer considerably ahead financially when compared to cash or financing transactions. Factory subsidized leases often require tier-one credit ratings; however, on select models, tier-two credit ratings might get approved at incrementally higher lease payments and/or higher down payment requirements