New-Vehicle Cash Rebates Are Surging, With EVs Leading The Charge

Though auto-loan rates remain high, the good news for beleaguered new-vehicle shoppers is that transaction prices are falling and automakers’ incentives are becoming more lucrative than any period since the pandemic slapped the industry silly. Kelly Blue Book reports that incentives last month rose to around 7.0% of the average transaction price, which is the highest level recorded in over three years and is around 60% higher than a year ago.

Already the average transaction price, which stands at $48,401 according to KBB, is down 0.2% over the past 12 months and have been falling – however slowly – for 10 consecutive months. They’ve so far dropped by 3.1% since they peaked in December, 2022 at $49,929.

KBB says the most generous rebate programs can currently be found at Infiniti, Volkswagen, Audi and Nissan dealerships, though the Stellantis brands (Chrysler, Dodge, Jeep and Ram) remain below the industry average in terms of incentives.

Incentives are especially rich these days on full electric vehicles, which amount to an average 12% of their transaction prices, according to KBB data, which is twice what had been offered last year at this time. The 2024 versions of a few top-priced Audi models are offering among the richest rebates announced this month with up to $10,000 cash back.

We’re featuring the 25 biggest cash rebates being offered in multiple U.S. regions this month, culled from automakers’ websites, below. Some models offer additional rebates for members of the armed forces and recent college graduates, among other groups. Shoppers can also take advantage of select low-rate or 0.0% financing and discounted lease deals (many electric vehicles offer $7,500 leasing discounts that leverage a loophole in the federal tax credit program).

But be aware that new-car rebate programs often vary by region to address local supply and demand issues, and additional offers are often available to recent college graduates and military members, so be sure to check automakers’ websites and contact area dealerships to verify what’s being offered locally.