What is a Cash Allowance?

 

When buying a car from a dealership, a cash allowance refers to a discount or rebate that the manufacturer or the dealership offers to reduce the price of the vehicle. This incentive is often applied directly to the purchase price of the car, making it more affordable for the buyer. 

Current Vehicle Specials

Cash allowances can come in a few different forms:

  1. Manufacturer Rebates: These are discounts provided directly by the car manufacturer, typically as a promotional offer. The amount is subtracted from the vehicle's price, lowering the total cost. 
  2. Dealer Cash: This is a rebate that the dealership receives from the manufacturer, which they may choose to pass on to the buyer as a discount. Dealer cash can sometimes be negotiated, giving you an opportunity to lower the purchase price further. 

How Does a Cash Allowance Work?

Let's say you're looking at a vehicle with a sticker price of $25,000. If the dealership or manufacturer offers a $2,000 cash allowance, the price of the vehicle will be reduced to $23,000. The cash allowance is typically applied at the time of purchase, so the buyer pays the reduced price. 

Why is a Cash Allowance Important? 

Cash allowances are a great way to save money on your car purchase. It can make a vehicle more affordable, allowing you to either pay less upfront or get a better model or trim for the same price. These allowances are often available during special sales events or promotional periods, so it's a good idea to check with your local dealership to see what offers are currently available. 

At McGrath Chevy of Dubuque, our team is ready to help you navigate any current cash allowance offers, making your new car purchase even more affordable. Come in today to see how we can help you save on your next vehicle!Â