What is a Rebate On a Car?

Claim My Rebates What is a Rebate On a Car?

What is a Rebate On a Car?

When shopping for a new car, there are many different discount structures you'll encounter. You may wonder, "What is a rebate on a car?" While car rebates are structured differently than rebates for most other products, they remain an excellent way to reduce the cost of a new car. Vehicle rebates can either be credited towards your down payment or be sent to you directly as a check.

Whichever way you choose to receive your car rebate, DoNotPay can help you through the process. DoNotPay makes claiming rebates simple. Here's what car buyers should understand about how car rebates work.

What Is a Car Rebate?

Car rebates are a form of a discount on the purchase of a new car offered by the manufacturer. When a manufacturer offers a rebate, the company credits a certain amount towards your purchase. Rebates are usually part of limited-time deals. If a car that you're interested in buying has a rebate deal, you may be able to save up to several thousand dollars if you qualify.

How Does Car Rebates Work?

A car rebate is a promotional deal. It's important for the car-buying negotiation that you understand that rebates are set by the manufacturer, not the dealership. Manufacturers reimburse dealers for the amount of the rebate.

The dealers are legally required to pass these savings along to the customer. Rebates, which are also called incentives, are almost always offered for new cars. Manufacturers usually use these and other deals to promote car models that are experiencing slow sales.

Rebates work differently for cars than they do for other products. With mail-in rebates for other products, you'll follow this process:

  1. Buy the item at full price.
  2. Send in a form and your receipt.
  3. Get money back, either as a check, prepaid credit card, or gift card.

With cars, your rebate is factored into the initial purchase price. There are a few different ways this can happen:

The rebate is credited towards your down paymentThis is the most common scenario. The dealer will apply your rebate to the total you're putting down for the car. A larger down payment reduces the monthly payments you'll need to make and allows you to take out a smaller loan.
The rebate is deducted from your purchase priceIf you already have significant savings or trade-in value, the dealership might apply the rebate credit to reduce the overall cost of the car rather than targeting the down payment specifically. In some states, this discount can be applied to the pre-tax price of the car, so you save on sales tax.
The manufacturer sends you a checkIf you're in a good position with savings and trade-in value, you may be able to choose to receive the rebate directly as a check. While this is uncommon, it is an option available to you.

Rebate deals usually come with specific qualifications. These should be part of the advertisements for the promotion, so it should be fairly easy to find out what the requirements are for the deal you're considering. Some common qualifications include:

  • Already owning or leasing a car from that brand
  • Financing through the manufacturer
  • Being part of a specific group, like military members or recent graduates

In many cases, you'll need to choose between a cash rebate and a better financing deal, like a very low or even 0% APR. If this is the case, it's important to calculate exactly how much the car will cost you in total in each scenario, to make the best decision for you.

Easily Get a Rebate on Your New Car With DoNotPay

Rebates can be a great way to save money if you're buying a new car. However, comparing deals and claiming rebates can be tedious and time-consuming. DoNotPay can help. With DoNotPay's fast, easy and successful rebates product, you can easily search for and request rebates for new cars and any other qualifying purchases you make. DoNotPay helps you save time, stress, and energy while getting the savings you're entitled to.

Here's how it works:

  1. Search rebates on DoNotPay and select the type of rebates offer you want to claim (is it for a car, electronic gadget, household appliance, etc).


  2. Tell us more about the purchase, including the product name, brand, serial number (if relevant), and whether you bought it online or in-person.


  3. Select whether the rebate is online or mail-in. Upload your evidence documents, including receipts, and any necessary forms, and confirm your contact information.

Once you've entered your information, DoNotPay will send in your rebate claim, and you should receive your check within 30 days.

DoNotPay Works Across All Brands and Companies

DoNotPay can help you easily claim rebates for any of your purchases, from tires for your new car to the latest smartphone. Here are some examples of rebates DoNotPay can help with:

To easily request a rebate on a new car, contact DoNotPay today!

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