Question

I'm in the position to buy a brand-new car for the first time and I hear all these ads offering factory bonuses. What does this mean?

Regards, Tim

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Answer

Generally these are incentives provided to the dealership by the manufacturer to help sell existing stock. It can be offered in a variety of ways - discounting the recommended retail price, cashback offers or even third-party deals such as free fuel for a specified time or store credit - but essentially means the dealership has more room to negotiate on the purchase price of the car.