Buying a car is often a complicated process, and it is made even more complicated when dealers dangle rebates and other incentives in front of your face.  Sometimes these incentives may even be intentionally used to draw your attention away from other, less appealing, aspects of the deal you are being offered.  The most typical incentives offered to potential customers include rebates and low-interest financing.

One very important thing to remember is that rebates are offered by the manufacturer of the car.  They do not come from the dealer, and therefore you still have the right to negotiate every aspect of your price and financing with your dealer before agreeing to purchase the car.  Generally, the best approach is to get the price of the vehicle lowered before agreeing to accept the rebate or special financing that is being offered.  Your dealer may be less willing to work with you if he knows you are planning to take the rebate.

Always read the fine print carefully before you agree to any terms.  This is especially important when you are receiving incentives, as often additional fees may be included to help cover the cost of the special deal you are being offered.  Low-interest financing may also only apply to shorter terms and less popular vehicle models.  Be certain to ask before you decide which car to buy, or you might end up wasting hours on paperwork before realizing that the incentives you were interested in are not available to you.

Incentives are typically used to motivate potential customers to purchase models that are selling slowly.  Dealers often receive their own incentives straight from the manufacturer for selling a specific number of that particular model.  Generally, these factory-to-dealer incentives result in less cost to the dealer.  This should be reflected both in the incentives offered to you, and in the price of the vehicle.  Although dealers are not obligated to pass these savings along to their customers, knowing that these dealer incentives exist may strengthen your side during price negotiations.

The decision to buy a new vehicle is an important one.  All aspects of the purchase need to be carefully considered before you agree to sign the contract.  Research your vehicle choices carefully before heading to the dealership, and look into financing options available based on your credit score.  If you feel you are not getting a good deal, consider moving on to the next dealership.  Dealer incentives vary from one dealer to the next.  Some may be more willing to work with you than others.