For consumers with a bad credit car loan, getting a good deal on a car can be key, as it can mean lower monthly payments. Since borrowers with bad credit know that every missed payment will affect their already-low credit score, having a manageable payment plan is important. That can be facilitated by negotiating a great deal.
One of the ways to do this is to pay attention to manufacturer incentives. Frequently, automakers will offer great incentives on cars that aren’t selling well or about to be replaced by a new model. Drivers can find these deals in national and local advertisements as well as by scouring the internet. But they may not be aware of another type of incentive – one that goes from the manufacturer to a dealer.
Automakers like to reward their dealers for moving vehicles by providing cash incentives. This is usually done through a program where the dealer will get thousands of dollars directly from the dealer for every model they sell, or a big bonus for hitting a sales total. Some dealers like to pass these savings on to customers, and will advertise the deal, reasoning that they will sell more vehicles by lowering the price and thus get more cash from the manufacturer.
Often, the discount they give on the car usually allows them to reap thousands through the incentive program. Other dealers will not mention these incentives at all and try to sell the vehicle at its normal.