Buying a car? Your ZIP code can be key to rebates

When it comes to car shopping, one of the weird tips out there is don't forget your ZIP code.

The reason? Rebates aren't a one-size-fits-all proposition. While we see big national ads on TV, the reality is that dealers need to move cars and trucks off local lots.

ZIP codes can unlock many incentives that may be offered at a given time on a specific vehicle in a metro area, said Brad Korner, general manager for Cox Automotive Rates & Incentives in Ann Arbor, Mich.

As annoying as it might seem to take an extra step, consumers should plug in that ZIP code when researching car prices and deals online to determine local or regional incentives.

Picture these examples, taken from AIS Rebates, a Cox Automotive company that offers rebate and incentive research and analysis:

• In late March, a 2017 Chevrolet Impala LT had $3,750 in incentives in Detroit versus $2,750 in Charlotte, N.C.
• A 2017 Buick Envision had $2,000 in incentives in Detroit versus $4,000 in Tampa, Fla.
• A 2017 Malibu LT had $3,000 in incentives in Detroit versus $4,000 in Chicago and other select markets. March incentives can change as early as April 1. 

Can you simply head to another state to get a better discount? Probably not. Most often, carmakers will require that you use the rebates that would be available where you're going to be registering the car, Korner said.

But the better equipped you are with information about the latest incentives before walking onto a car lot, the more likely you'll be able to negotiate the best deal possible for yourself. If you spot a special rebate online, make sure the car salesperson adds in that discount, too.

When you know the right questions to ask, experts say, it's amazing how often a car salesperson can find another $1,000 or $2,000 in incentives.

Many consumers would never imagine that dealers in different states could have different rebates on the same car — or incentives that go beyond what's advertised on TV.  But maybe an automaker wants to hold onto its competitive edge and market share in an area, so the carmaker has more reason to push pick-up trucks in Texas than, say, Rhode Island.

And some incentives are applied to individual vehicle identification numbers to help sell specific, slow-to-move vehicles in a given area, Korner said.

What are some clues for getting a better discount on a car?

Pay attention to special offers or conditional rebates 

If you're a recent college grad, look for things like College Cash. Automakers can have special rebates for college students and active military.

Take time to understand what's required to be an eligible participant, said Alicia Rudowyj, import rebate manager and trainer at Cox Automotive Rates & Incentives.

Nissan is offering $500 in Grad Cash, for example, on a 2017 Nissan 370Z Coupe. Among other requirements, Nissan wants proof of college graduation within the past 24 months or proof of current enrollment in a U.S. graduate school or written confirmation of an upcoming graduation within the next six months.

When it comes to the military discount of $500, Nissan defines the military as U.S. active and reserve military, U.S. military veterans within 12 months of separation from active or reserve duty, and U.S. military retirees who have completed at least 20 years of active or reserve duty.

Or there can be loyalty bonuses if an automaker wants to encourage drivers to stay with the same brand or even the same model.

Some conquest bonuses are available if an automaker has a smaller market share but wants to lure consumers over to a new car brand.

Sometimes you can find rebates on new 2016 cars that remain on the lot, as well as new 2017 models.

Many times, automakers will peg special rebates to holidays or events, such as a local auto show.

"This time of year is really big for auto shows. So you're going to see a lot of incentives there," Korner said.

Remember, incentives change over time

For many car manufacturers, incentives can change on the first or the second of the month. But some incentives can be added during the month, too. Incentives tied to leasing will vary, too.

To find out about rebates, check the manufacturer's website and other research spots, such as Kelley Blue Book at KBB.com or Edmunds.com.

Ronald Montoya, senior consumer advice editor for Edmunds.com, said you want to find out what incentives you can stack — or use together.

Think of it like using $10 in Kohl's cash or rewards on top of a 30%-off coupon when you're buying an item that's already on sale.

In some cases, Montoya noted that an automaker's bonus cash cannot be combined with a low annual percentage rate offer at the dealership. Some recommend getting pre-approved for a car loan elsewhere before shopping in order to compare offers. In some cases, it may be better to take the rebate and find low-cost financing elsewhere.

Montoya suggests double-checking with a salesperson to see whether there are other incentives, maybe local promotions that are not advertised nationally.

Think inside the big box

Big retailers, such as Costco and now Walmart (to a limited degree), are offering auto-buying programs. No, they're not stocking SUVs next to the socks or salad fixings. Instead, it's often a way to connect car buyers with select dealerships that are offering low prices.

Walmart is working with a partner called CarSaver — an online auto retail platform — to provide the service. Walmart has one pilot program through a store in Stuart, Fla.

Automotive News reported in January that Walmart will lease space in some additional stores this year. CarSaver, for example, will set up kiosks inside four stores in Arizona in April, according to Walmart.

Car dealer Earl Stewart, who writes a blog called Earloncars.com, said consumers can find a transparent pricing model via the Costco auto-buying program.

Stewart, a Fla.-based auto dealer who loves to talk about the car buying process, said the Costco program can protect consumers from efforts by some car dealers to add dealer fees and dealer-installed options to a car or truck to boost the price.

Stewart, who is the owner of Earl Stewart Toyota in North Palm Beach, Fla., said he is part of the Costco dealer network and must provide pricing that is a good value. Select dealers would have a Costco member-only price sheet to show the exclusive prearranged savings.

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Costco's program can apply to new vehicles and pre-owned vehicles with a manufacturer's warranty. Only certain trained personnel at the select dealership are able to sell vehicles under the Costco program. Information is at CostcoAuto.com.

Stewart said consumers would be entitled to applicable manufacturer rebates or special financing. He suggests that auto buyers ask to see the manufacturer’s invoice and the manufacturer's suggested retail price for the vehicle they select to see how much they saved as a Costco member.

Another option is to review information on TrueCar.com — a digital automotive marketplace that provides pricing data about what other people paid for their cars and also powers some car-buying programs. You also might want to shop a dealer early in the month to compare prices and return at the end of the month to see whether a deal has improved.

Not rushing to drive a car off a lot remains a good way to save money.

Contact Susan Tompor: stompor@freepress.com or 313-222-8876. Follow her on Twitter @Tompor.