- Well-qualified essentially means customers who have excellent credit. Incentives for well-qualified customers include rebates and low APR financing. Rebates either come in the form of cash back or money taken off of the manufacture's suggested retail price or MSRP. When you qualify for cash back, the manufacturer sends you a check in the mail after you agree to purchase the vehicle. Instead of -- or in addition to -- offering rebates, manufacturers may offer you low APR financing. A low APR incentive is only applicable if you obtain a loan at the dealership.
- Most car manufacturers offer discounts to active-duty military personnel. Discounts vary with each manufacturer. The incentive is usually instant, which means the discount is immediately taken off of the MSRP. Some companies offer additional military incentives on top of the standard incentives. The additional incentives usually only last for a specified amount of time. For example, General Motors offers a $750 instant discount in addition to their standard military incentive for all United Services Automobile Association members.
- If you're a full-time or part-time student, you'll most likely qualify for a student discount when purchasing a new car. Like all other incentives, the discount amount varies with each manufacturer, but usually is at least $500. Ford, for example, offers a $500 discount for all part-time and full-time students who plan on purchasing a new 2011 or 2012 Ford vehicle. Some manufacturers offer discounts to recent graduates as well. Toyota's $1,000 discount for students who obtained a degree within the last two years lasts until January 3, 2012.
- As of 2011, the federal government offers a tax credit of up to $7,500 for everyone who purchases a new electric car. Some states offer a tax credit as well. The federal tax credit ranges from $2,500 to $7,500 based on the size of the battery, according to Hybridcars.com.
- Incentives are normally offered by manufacturers, not dealerships. Dealerships may opt to offer the incentives on behalf of the manufacturers, but they are not required to do so. However, because the incentives bring in customers and because each incentive is refunded to the dealership, most dealerships agree to offer the incentives.
- Even if a discount is taken off of the MSRP, customers usually pay tax based on the full purchase price before any discounts are taken into consideration, according to Newcars.com. That means if the MSRP is $16,000, and the discount reduces that price to $12,000, you would still pay tax on $16,000.
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