When buying a new car, be sure to investigate the manufacturers’ rebates currently on offer. These incentive packages could reduce the purchase price of your car by thousands of dollars.

Consumer rebates are cash-back deals paid directly by the manufacturer to the customer. If you are borrowing money to buy the car, the cash rebate can be used in making extra repayments, so you can pay off your loan more quickly. Alternatively, you can ask the dealer to deduct the rebate from the car purchase price.

Consumer cash-back deals are widely advertised in the press, and full details of the offers currently available can be found on car manufacturers’ websites. Sometimes special deals are offered to particular groups, such as first-time buyers, repeat buyers or students, or people living in a particular region of the country.

It is also standard practice for manufacturers to offer rebates to dealers in the form of an incentive payment for every car sold. In negotiating the cost of the car with the dealer, you can ask them to pass on this rebate to you by reducing the purchase price.

The best deals are often available at the end of the year, when manufacturers and dealers are looking to make extra sales to meet their annual targets, and when stock is being cleared to make room for new models.

Attractive though these cash-back offers may be, don’t be tempted into a buying a car which is not right for you, and make sure you secure the best financial deal available. Low-interest or zero percent interest financing offered as an alternative to a rebate may save more money in the long-run. When buying a car, you also need to take into account the total cost of car ownership, including repairs, insurance and depreciation.