Manufacturer rebates comprise the majority of savings that a consumer enjoys when buying a vehicle.  Rebates usually start as low as $500 and can go as high as $5,000 or more.

Rebates, like the milk in your refrigerator, have expiration dates that are firm.  Manufacturers announce new incentives by notifying the dealer via an electronic communication (an email on their dealer/manufacturer management system) and posting said rebate on the manufacturer’s website.

Contrary to what consumers believe, dealers have no advance notice as to the rebates, their amounts, which vehicles they will cover, and their expiration dates.

This creates tension between the dealer and the consumer and is one of the causes of dealer mistrust by the consumer.  What happens when a consumer buys a vehicle and learns that a new rebate offers more money just one day after the consumer takes delivery? Well the consumer is stuck. There is no ability to return to the dealership and receive the additional money. Same scenario if the rebate is reduced; you cannot receive the higher rebate.  You only receive the rebate that exists at the time you took delivery and you take the risk that it will not increase.

One way to hedge your risk is to buy towards the end of the month since manufacturers typically increase their rebates as the month winds down in order to hit their objectives.  And at times like the model year end (July through August) rebates are typically higher than at other times during the year.

So remember:

1. Buy towards the end of the month.

2. Don’t be upset with the dealer if the rebate changes - he has no control over it; it is from the manufacturer not the dealer.

3. You risk whether or not the rebate will be increased or decreased. And you will only receive the rebate that is available at the time of your delivery.

4. And if the rebate is increased, you cannot return to the dealer and expect the dealer to reimburse you the difference.