Terms like ‘Incentives’ and ‘Rebates’ that we get to hear in association with car manufacturers and dealerships are actually discount programs offered by the manufacturers of cars to stimulate sales. Mazda as a popular manufacturer too conducts such programs that are executed by their concerned dealerships at different corners of the world.
The most common programs that are provided by the manufacturer directly to the consumers are in the forms of Low Interest Financing, Cash Rebates, and Special Leases. Here we will discuss about these Incentives that are common with almost every car manufacturer among which Mazda is no exception. Here we will take a closer look at these incentives, rebates and Specials offered by car manufacturers like Mazda like what we have seen in the Las Vegas Mazda 3 specials.
Rebates to the Dealers from the Manufacturer
This is a kind of incentive where the manufacturers pay to the dealers to stimulate the sales ratio or reduce the inventory pressure on certain models of vehicles. There can be many variations in this kind of incentive but the most common one is where the dealer cash incentive structure offers a cash credit to the dealer at the event of the sale of a vehicle when the program is running. Sometimes, the dealers might also earn an amount of cash bonuses especially when they succeed in meeting the sales targets.
Rebates in Cash
Manufacturers like Mazda offers Cash Rebates directly to their consumers at the point of sale in order to reduce the finalized net price of a particular vehicle. In this program the consumers are usually elected for a credit of cash rebate to be considered as a down payment against the purchase price of a new vehicle.
When Rebates are provided by the manufacturer like Mazda directly to the customer in the form of cash at the time when the vehicle is purchased, it is mostly known as the cash rebates. It is aimed to lower the final tag price of the vehicle. Consumers may either choose to receive this amount in cash or as the amount credited to the part of the down payment to be done for the vehicle.
Fee for the Acquisition
The Acquisition fee, more popularly termed as a “bank fee”, “administrative fee” or an “assignment fee.” When a vehicle is out for lease, a fee is charged by the concerned leasing company during the inception of the lease which covers a variety of costs mostly at the administrative level, like receiving a credit report, checking the lease documentation, verifying coverage of insurance, and converting the lease data into the accounting systems.
The Bottom Line
In a dealership like Mazda Las Vegas, we got a clear picture about these incentives and rebates offered by car manufacturers through the experts who were eager to explain the entire process to us. In short, these incentives are basically an auto industry term that covers all possible methods by the manufacturers in an attempt to stimulate sales and leases of the vehicle by reducing the final net cost that the customers were entitled to pay without reducing their maximum retail price for a particular vehicle.