Factory Incentive

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Discounts and giveaways on new car models that are selling poorly

A factory incentive is when a manufacturer has too many of a particular new car model and offers consumers, through their dealer network, a financial discount or product incentive to purchase the vehicle. There are several different programs, and they change regularly. Not all new car models in a product line will have dealer incentives.

Examples of incentives may include extended warranties and discounts on vehicle accessories such as a security monitoring system or a premium sound system.

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