What are "factory to dealer incentives"?

What are "factory to dealer incentives"?

James Bell (Publisher, Auto Reviewer) gives expert video advice on: What does "total" mean on the sticker price?; What is a "test drive"?; What is the difference between unleaded, regular, super and diesel? and more...

“Factory to dealer incentives” usually refer to rebates, special financing rates or anything that the dealer can essentially pass on from the manufacturer directly to the customer. This can be a $25 rebate or percentage of financing - anything that is factory money passed through the dealer to the consumer. Factory to dealer incentives sometimes are advertised: they'll be part of a national campaign to incentivize you to come in and take a look at a particular vehicle. Other times, they're kept very quiet because the dealer and manufacturer would prefer not to offer them, and would rather sell the vehicle at a higher profit margin. Similarly to with invoice prices, it's very important to do your research about factory to dealer incentives. Go to sites like intellichoice.com or kellybluebook.com and get a latest status on all the incentives on vehicles. This is all published information. It's just something you need to know because you can't always count on the salesperson to offer up all the money they have available.