Canadian Car Dealer Incentives

Dealerships across Canada offer different incentives to entice car buyers into purchasing a vehicle. It’s a great strategy and benefits the car dealers as well as the everyday Canadian. The car dealership get the sale – and you save money. A “customer rebate” or “dealer incentive” is a form of repayment from the manufacturer to the buyer. This promotes sales for a particular make or model of vehicle.

Canadian car dealerships will also offer different types of incentives such as a vehicle lease. A lease is vehicle financing for a fixed period of time. An agreed upon amount of mileage allowance is determined before the final leasing contract is signed. You still make a monthly payment, but you don’t own the vehicle. At the end of the lease you’ll have the option to buy the vehicle. Some times Canadian car dealers will off “early turn in” incentives. This allows you the option of turning in your leased vehicle, early, without penalties. This benefits the consumer who is approaching the agreed upon mileage or just simply want to have a new vehicle.

If buying is your option then understanding pricing and terms is important in making a wise decision. Every vehicle has a “list price”or “sticker price”. This is the manufacturers suggested retail price, or MSRP, for that specific vehicle. You should always negotiate the price of a vehicle before purchasing it. You never know, even with incentives, what type of deal you can get.

It’s a fact in Canada that more people buy cars when dealerships are offering incentives. Making sure you research different dealerships and what incentives they are currently offering is important when deciding on what vehicle to purchase. Dealership incentive can change on a weekly basis. Get an auto loan pre approval before you head to the dealer. If your financing is in order you are more likely to know what type of vehicle you can afford, which speeds up the buying process.

Tags: Auto Dealers, car financing, in house financing