Wednesday, July 21, 2010

What exactly is a total cash allowance incentive?

Was looking at a dealers website and under incentives it gives an apr and an amount for each new vehicle- for example 4.9apr or $2000 Total Cash Allowance..what exactly does this mean?

What exactly is a total cash allowance incentive?
When you go to buy a vehicle that has incentivised rates you give up part of the rebate cash.


For example: If a car has 2000.00 in customer cash rebates and 500.00 bonus cash, it totals 2500.00. But if you take the incentivised rate of 4.9% you give up the 2000.00 customer cash. So then you would have 4.9% and only 500.00 bonus cash.


This is how GM works. Not too sure about the other manufacturers.
Reply:its the amount of rebate that you could get when you purcahse your vehicle


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