Understanding New-Vehicle Incentives
There are a number of different types of incentives to help you purchase a new vehicle. If you are not familiar with them, it can be a little confusing. The following are some of the more popular types of offers and common terms used. And of course, your local Ford or Lincoln Dealership can answer any financing questions you may have.
The Manufacturer’s Suggested Retail Price, commonly known as the list price, window sticker or MSRP, is the vehicle price set by the factory. Finance rates and payments all revolve around the MSRP. Items such as the destination charge (the amount the automaker charges the dealership to deliver a new vehicle from the factory), taxes, title and registration fees are extra and not included in the MSRP. These charges seldom can be negotiated with your dealership salesperson.
Cash back refers to a specific sum of money Ford or Lincoln (or a Ford or Lincoln Dealer association) offers as an incentive to the purchaser. Usually the incentive is taxable; therefore, be sure to apply tax to the gross amount.
Cash plus financing or finance cash
This is a cash back incentive that is combinable with finance rates offered.
Reduced rate financing or special finance rate
Generally, this is an interest rate on a loan for the new vehicle being purchased that is lower than the usual interest rate offered by the finance company. Ford Motor Company, your dealership or both subsidize the rate.
National rebate amount
Ford and Lincoln provide rebates and incentives to encourage vehicle sales. National rebates and incentives typically take the form of cash or special low interest rates. The listed programs apply to a particular vehicle in all parts of the country.
These are usually in the form of cash or special financing, and apply to specific areas or states of the continental U.S. National incentives apply to the entire continental U.S. A national incentive cannot be combined with a regional incentive.
Special individual offers
Sometimes you will hear special offers for college grads, military or first-time buyers. These are offers given to these types of buyers or any other group that is eligible.