QandAs: Autos

What is a Rebate and Incentive?

Answer:
An incentive is any monetary reward designed

to make a new car more attractive to consumers. A typical incentive is a manufacturer’s rebate, in which a certain amount of money is subtracted from the sticker price of a vehicle.

Rebates are sometimes called “cash back,” although they are rarely given in actual cash. Most rebates are applied directly to the sale price. Dealers may also offer their own rebates or incentives such as low-cost financing and increased trade allowances. General Motors offers additional rebates through its credit card program, which gives cardholders money back toward the purchase of a new car or truck.