Best Car Deals

New Car Financing and Cash Back Offers

There are several ways to save money on a new car. You can negotiate the cost of the vehicle and the associated fees that the dealer wants to charge, or you can use our Best Price Program, where we work to find you guaranteed savings at local dealers.

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Last Updated: Apr 07, 2017

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You can also save with new car financing and cash back offers. When cars, trucks, and SUVs aren’t moving off the lots as fast as manufacturers like, or when there’s a new model on the horizon, automakers extend special deals to entice car buyers. Two of the most common deals are cash back offers, which give you a significant discount off whatever price you negotiate, and new car financing offers.

Financing deals provide below-market interest rates. Think of interest as the rental price of the money you're borrowing. If you find a zero percent deal, you're getting free rental of the money you borrowed for your new vehicle purchase.

Rising interest rates have been in the news, but there's no need to panic. Market pressure is expected to keep any rise in rates on the low side, and any sag in the sale of new cars will cause consumer incentives to come roaring back.

This April, new vehicle incentive spending is at a bit of a crossroads. Interest rates are slowly starting to edge up while sales of new cars are beginning to slow. You'll have to search a little harder for five-year, zero percent financing offers as they become more targeted to specific models such as the 2017 Toyota Camry, which will be replaced with a redesigned model later this year, or the redesigned 2017 Buick LaCrosse, which is off to a slow sales start.

However, there are some great cash back offers this April on vehicles ranging from the 2016 Cadillac CTS to the 2017 Jeep Cherokee and the 2017 GMC Sierra Crew Cab full-size pickup. Hyundai is offering incredibly generous cash back deals this month, including a $6,750 cash back offer on the highly ranked 2017 Sonata midsize sedan.

When faced with a number of options, how do you know what’s a good money-saving deal and what isn’t? Many car buyers will follow the easy route by taking the cash back, but you can potentially save thousands by running the numbers on financing offers. Imagine, for example, that you’ve found the perfect minivan priced at $40,000, and you have the choice of $2,000 cash back or zero percent financing for five years.

If you can pay cash or if your current vehicle has a high trade-in value, the best choice is almost always to take the rebate money and run. If you’re financing, you’re going to want a financial calculator to help make the decision. If you take the five-year, zero percent offer, you’ll finance the full $40,000, and your monthly payments will be about $667. Choose the $2,000 cash back, and you’ll need to finance the remaining $38,000 at the current market interest rate, which right now is about 3.5 percent for those with good credit. At that interest rate, your monthly payments would be about $691 per month. In other words, you'd save about $1,400 over the life of your loan by going with the zero percent offer. Every situation is different, so it’s critical that you do the math before you make a decision.

Where you buy can make a huge difference in the kind of deal that you can book. Some deals are based on the location of the dealer and others on the location of your residence. Often outlets in different areas are able to offer varied discounts. You might be able to get a great deal on a full-size pickup truck by searching an urban location where truck demand is lower, or travel a few miles out of town to get a great rate on a compact car in a rural area where pickups and SUVs dominate. Watching when car deals expire is critical, as you can give up thousands in savings by selecting the wrong day to sign your paperwork.

We research deals based on representative ZIP codes across the country. We strive to keep this list of the best car deals up to date, but deals can change without warning. Some deals are limited to a certain number of cars or a percentage of dealer stock, and inclusion on our site does not a guarantee that a specific deal will be available at your local outlet. The easiest way to find out if you can take advantage of an offer is to click the orange button next to the car that you're interested in, and we’ll search for a great price at a local new car dealer.

Our best car deals include purchase deals for ToyotaNissanFordHondaChevroletHyundaiKiaDodgeRamJeep, MazdaBuickGMCSubaruVolkswagenAcuraCadillacPorsche, Mercedes-BenzAudiBMW, and Lexus vehicles. Our expert researchers and journalists also search the market for this month’s best lease deals and best used car deals. There’s a great car deal out there for you, and we’ve done the research to help you find it.

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