Loyalty bonus cash

Loyalty bonus cash is a secret, hidden-manufacturer incentive offered to brand-loyal customers in the form of a cash rebate.

Most buyers use this customer cash to lower the car’s selling price. (Or, we get the option to receive a mailed rebate instead.) These cash rebates can also lower the adjusted cap cost of a new-car lease.

To claim this incentive, a customer must show proof that s/he owns a vehicle of the same make as the one s/he’s buying.

Many car manufacturers also insist that the vehicle is financed through their “captives.” These are financing companies car manufacturers control (such as Toyota Motor Credit Corporation or INFINITI Financial Services). Financing via credit unions and non-captive finance companies usually void loyalty-bonus cash rebates.

A similar cash “conquest” bonus is offered to steal away a customer who owns (or leases) a competitor’s vehicle.

Often, these bonuses are used when a certain model is not selling well and the automaker lowers the price to boost sales.

Knowing about these secret car incentives and rebates often save us thousands of dollars over the term of the use of the car.