What a deal!

REBATES AND INCENTIVES ARE SPECIAL DISCOUNT programs manufacturers offer through their dealers to attract buyers to less popular or slow-selling vehicles. These programs used to show up around mid-to late-summer, but many are now available year-round. They help dealers Clear their lots to make room for new models and can significantly lower the bottom line of your vehicle's price.

There are differences between a rebate and an incentive. A rebate is a cash-back dollar amount to the buyer that originates from the manufacturer and is passed on to the customer by the dealer. Usually, a rebate is either deducted from the final vehicle price you and the dealer agree on to lower your cost or is given to you as cash.

An incentive, on the other hand, is a sweeten-the-deal bonus, such as the manufacturer offering to subsidize your lease and raise the residual value so you pay for less depreciation, or giving you a lower-than-average interest rate. Some dealers might even toss in perks such as bigger tires or leather seats at no additional cost as an incentive to open your wallet. The dealer is not always obliged to pass incentives along to buyers, but they have become a big selling tool.

Rebates and incentives change rapidly, and some only last a few days or a few weeks, so do your homework. If you see an ad in the newspaper, bring it to the dealership, since salespeople are not always aware of these offers, and some are valid only at specific groups of dealerships.

GM has spent some $6 billion on rebates and promotions in the first six months of this year, according to Bloombery News, while Ford has announced that industry discounts have helped bring prices down by about 2.5 percent. Chrysler rebates on fleet purchases have ranged from $200 to $2,000, while Chevrolet's Trailblazer, for instance, carried a sizable $3,000 rebate. Dodge recently offered buyers of the Dakota Sport Club Cab a $2,000 rebate or zero-percent financing.

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