To stimulate sales and to unload inventory, many car companies offer manufacturer and dealer incentives. These incentives often take the form of rebates, low annual percentage rates on loans, or discounts. Be aware that there are differences between manufacturer incentives and dealer incentives. Manufacturer incentives are offered directly to car buyers from the manufacturers. If it's a rebate or a discount, the total amount is paid directly to you by the factory and should be deducted from any price a dealer offers. Typically advertised on television or in newspapers, these incentives usually change on a weekly basis. Dealer incentives, on the other hand, are offered by manufacturers to dealers and not necessarily passed on to consumers. These incentives are usually money paid to the dealer by the factory to sell specific models. A dealer has the choice of subtracting all or a portion of the amount from the selling price. Dealer incentives often vary greatly, according to market conditions. For example, a popular-selling car most likely won't carry any incentives, while a slow-selling model may come with a large rebate. Try to take advantage of all incentives, whether they're from the manufacturer or dealer, as they can significantly lower the purchase price of your car and increase your profit if and when you decide to resell your car.
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