What are incentives?

Answer:

There are two different kinds of incentives: Customer Incentives and Dealer Incentives. Customer Incentives involve cash-back rebates, low-interest financing offers, or other perks offered directly to buyers, typically from the manufacturer or lenders themselves. Dealer Incentives are factory-to-dealer specials that reduce the dealer's true cost to buy the vehicle from the factory. Manufacturers offer these incentives on a regional or local basis to generate sales on specific models.

In addition, incentives are categorized into two separate groups: Global and Conditional. Global incentives apply to all customers and are used in the calculation of the vehicle’s final price. Conditional incentives do not apply to all customers and are not used in the calculation of the vehicle’s final price.