Cash discounts off the vehicle or low APR interest rates for financing are enticing incentives to lease a car. These offers are used by the manufacturers for a multitude of reasons. They do promote brand loyalty and they pique interest in a slower selling brand.
However, Incentives and rebates can vary by state and often change from one month to the next. Keep your eyes on the internet for the latest offers before you go to negotiate a car lease deal with your local broker. If shopping around for a new lease car, make sure that you compare the latest incentives being offered at dealerships in your area.
What Types of Incentives Is My Dealer Offering?
Cash-Back Offers:
These new-car incentives, in reality, are cash discounts deducted from the price of the car. Leasers often need to meet certain requirements in order to get that rebate. For example, certain rebates are only valid for recent college graduates, members of the military or a first responder.
Loyalty Bonus:
To qualify for a loyalty bonus, buyers need to show proof that they own a car or truck of the same make as the one they’re leasing. A “conquest” bonus, on the other hand, might require buyers to show that they own a competitor’s vehicle. In some cases, the discount will only apply toward a car lease. Many car manufactures also stipulate that the vehicle has to be financed through their very own financing companies, such as or Nissan Motor Acceptance Corp. Check the details carefully
Low APR Financing:
This incentive offers low-interest rates on financed vehicles, ranging from zero to about 5 percent. A buyer’s credit score usually has to be quite high in order to qualify, however. so not everyone will be eligible. These promotional rates are often among the lowest available, provided that you qualify. The low-interest rates are sometimes tied to the length of the loan term, so pay attention to this detail.
Lease Specials:
Car manufacturers have been known to offer special lease programs via their in house financing companies. They are subsidized leases known as subvented leases. These subsidized leases are commonly based on a residual value that’s much higher than the predicted value of the car at the end of the term. To put it bluntly, the automotive manufacturers and dealers adjust the residual value to lower the monthly payment and as a result, they make their cars and trucks a more appealing lease option.
Find the Best Car Deals for You.
You should browse car incentives and rebates by ZIP code, manufacturer and vehicle. It is perceived that low APR financing usually cannot be combined with customer cash, but you should check the small print. In most cases, customer cash is a better deal because you are financing a smaller loan amount.
It is wise to compare incentives and rebates on the different models you are considering to make certain you get the best deal on your next car lease. Once you know what the deals are for the car you’re interested in, treat the incentive as a part of the deal and continue to negotiate on the price of the lease. Make sure your lease dealer includes all taxes and fees so you are clear on the total monthly price before you sign on the dotted line.
