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Rebates: Are they as good as you imagine?


Rebates

It’s a term that’s thrown around the auto industry all the time. Commercials scream at you just how huge of a rebate you can get, and they are packaged as a saving tool to buy a car.

The conversation around rebates needs to shift. Consumers need to understand exactly what a rebate is and what it does before purchasing a vehicle with a rebate. So we broke it down for you.

Lets Break It Down

A rebate in basic definition is a partial refund to someone who has paid to much money for something. Right off the bat you should know this is huge.  Rebates are offered when a vehicle is not selling or there is too many of them left. It’s a way to incentivize customers into buying the product. Rather than lowering the price on a product, they give you money to use as a down payment towards the product.

This “down payment” lowers the cost of the vehicle to it’s actual worth.  Lets say that again for those in the back.

Instead of pricing the vehicle at it’s actual worth, they give you a “down payment” to lower it to that price.  Don’t believe us? Test it out. Find a dealership offering rebates on a new model. Then search that exact VIN on Kelley Blue Book. Once you are done come back, because we aren’t finished yet.

Did you do it? Crazy I know! Hold on here’s more….

Your Car's Value

Rebates can hurt the value of your vehicle. If a certain model isn’t selling well and the manufacturer offers a rebate, then that model line can see a hit in their value. It’s not a huge hit, unless you drive that specific model. If you purchase a 2018 car and 4 months later there is a $6,000 rebate, well hate to say it your brand new car just took a dip in value.

Rebates aren’t all bad, but here at Subaru of Wichita you won’t ever see a rebate. We price our cars at their value, are open and transparent, and a Subaru is way to reliable to not sell well!

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Should I buy a New Car or a Used Car

Buying new or buying used, this is a question everyone has to answer before they purchase their next vehicle. We wanted to give you all the information up front to help you make the decision that best fits you.


Reasons to buy new

Warranty

It’s a new car, so it’s warranty is untouched. Sure you can buy a warranty on a used car, but the best warranty –witout paying extra- will be the one that comes with your new car from the manufacturer. Sorry used car, you just can’t beat that.

Technology

Technology changes year after year. A 3 year old car can lack certain features you really want. Buying new ensure you have the latest and greatest tech to help enjoy your new ride.

Safety

As the years pass, vehicle safety laws become more and more stringent. This makes automakers build safer systems for their vehicles. Purchasing a used car means you may not get the safest vehicle you can. Technology like blind-spot monitoring systems, side curtain airbags, adaptive cruise control, and brake assists are becoming more and more prevalent on less expensive cars. Soon they too will most likely be mandated.

Higher Fuel Economy

The government has cracked down on fuel emissions and fuel economy. So automobiles as a whole are getting more fuel efficient, and also more powerful. Plus with the rise of hybrid or electric cars, you can really stretch your dollars. 

Reasons to buy Used

Price

The used car will (more than likely) always be less expensive. This gives you a little more room to step up to a nicer model. For instance a 2015 Outback with everything you want could be less than the 2017 Outback base model. You sacrifice a few years to get the comfort level you want.

Depreciation  

This is a big one, because cars lose value with each mile they are driven. The biggest decline in value happens right away. The second that vehicle leaves the lot, it depreciated it’s value. Some vehicles lose 40 percent of their value in the first year alone. That’s where buying used saves you money.

Insurance Rates 

Purchasing a new car means it’s going to cost more on insurance. Having a slightly older model vehicle saves you some cash every month.

Choice

Buying used gives you the advantage of finding exactly what you want. Some models are no longer offered, or maybe you want after market parts or modifications. When you buy used, you open yourself up to a much larger array of vehicles to choose from.

 

As with every big decision, it’s important that you weight the advantages on both sides. They also have their disadvantages. Take time to think about what vehicle type works right for you before stepping onto the lot. Knowledge is power, so do your research.

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