Buying a new car can be exciting, and finding ways to save money makes it even better. One way dealerships and manufacturers attract buyers is through incentives like cash allowances. Also known as rebates, a cash allowance is essentially a discount offered by the manufacturer to help boost sales. It’s a great opportunity for savvy car shoppers to potentially lower the overall cost of their new vehicle.
Key Benefits of a Cash Allowance
Cash allowances offer a couple of significant advantages when you’re in the market for a new car:
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Reduces Your Loan Amount: A cash allowance directly lowers the price of the car. This means you need to borrow less money, which can translate to lower monthly payments and less interest paid over the life of the loan.
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Upgrade Your Ride: Alternatively, the savings from a cash allowance could allow you to consider a more feature-rich or higher-end model than you initially thought possible within your budget. You might be able to afford those extra options or a more capable vehicle thanks to the reduced price.
Many car buyers choose to use the cash allowance as part of their down payment, further reducing the loan amount and potentially improving their loan terms.
Important Considerations and Potential Pitfalls
While cash allowances are appealing, it’s important to be aware of a few key details:
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Manufacturer Incentive, Not Dealer Discount: Cash allowances are offered by the car manufacturer, like Chevrolet, not the dealership itself. This means it should be applied after you’ve negotiated the best possible price on the vehicle. Don’t let a dealer include the cash allowance as part of their initial discount offer – it’s a separate incentive.
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Beware of Misleading Practices: Be cautious of dealers who suggest mailing you a check for the cash allowance after the purchase. Ideally, the allowance should be applied directly to reduce the car’s price at the time of sale. If something feels off, it’s always wise to do your research and check with resources like the Better Business Bureau to ensure the dealership has a good reputation.
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Know the Car’s Value: Before you even visit a dealership, research the fair market value of the car you’re interested in using resources like Kelley Blue Book. This will empower you to negotiate effectively and ensure you’re getting a genuine deal, on top of any applicable cash allowance.
Eligibility and How to Get a Cash Allowance
Keep in mind that cash allowances often have specific requirements:
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Credit Qualification: They are typically reserved for “qualified buyers,” which generally means customers with good to excellent credit scores. Your creditworthiness will likely be a factor in whether you’re eligible.
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Limited Time and Vehicle Selection: Cash allowance programs are usually promotional and run for a limited time. They may also only apply to specific new vehicles in a dealer’s inventory that the manufacturer is trying to move quickly. Check the details of the offer to see which vehicles are included and the expiration date.
If you have questions about financing or current Chevrolet rebates and cash allowances, it’s always best to contact a reputable dealership like Burns Chevrolet. They can provide you with accurate information and help you navigate the process of buying your new car while taking advantage of any available incentives.
