Decoding Car Deals: Your Glossary of New-Car Deals Jargon

As if car shopping isn’t stressful enough, you’ll likely encounter a bunch of new terms and phrases that can make shopping for the best deal intimidating. Our glossary below explains some key vocabulary to help decode exactly what those offers and deals mean — and which is the best for your budget.

Related: New-Car Deals and Incentives News

Phrases to Know When Shopping for New-Car Deals

• bonus cash
• capitalized cost
• capitalized cost reduction
• captive finance bonus cash
• cash + APR %
• consumer cash
• consumer lease cash
• consumer rebate + APR
• conquest promotion
• dealer cash
• dealer lease cash
• lease loyalty
• purchase loyalty
• stand-alone APR %
• stand-alone consumer rebate

bonus cash

Perhaps the most straightforward incentive, Bonus Cash is simply cash offered by the vehicle manufacturer. It can be applied to your down payment, thereby lowering your monthly payments and possibly qualifying you for a lower interest rate. Unless otherwise specified, bonus cash can be combined with other incentives.

capitalized cost

Only used for leasing, capitalized cost is the amount being financed through the lease, i.e., the price of the vehicle plus any taxes or fees not covered by the down payment. If you’re trading in a vehicle with an outstanding loan, capitalized cost can also include the balance of that loan. Capitalized cost is the figure from which your monthly lease payments will be calculated. Capitalized cost is often shortened to “cap cost.”

capitalized cost reduction

Also known as a “cap cost reduction,” a capitalized cost reduction is anything that reduces the amount being financed through the lease, such as a rebate, down payment or vehicle trade-in. Lessees may be required to make a minimum down payment to qualify for special lease rates or if they have poor credit.

captive finance bonus cash

Bonus cash that is only offered to buyers who finance their purchase through the automaker’s captive lender (e.g., companies such as Ford Credit, GM Financial and Toyota Financial Services).

cash + APR %

Similar to a captive finance bonus cash promotion, cash plus APR deals offer a cash price reduction, but only when combined with a loan at the specified interest rate through the manufacturer’s captive finance company.

consumer cash

Bonus cash with stipulations, consumer cash applies to purchases only and cannot be combined with other offers.

consumer lease cash

Consumer lease cash is a direct capitalized cost reduction offered to lessees.

consumer rebate + APR

A consumer rebate with APR is an additional incentive offered on top of a Cash plus APR promotion.

conquest promotion

These are offers limited to buyers who trade in competitors’ vehicles. Conquest promotions may apply to any vehicle from any other brand, or they may be limited to specific makes and models.

dealer cash

Usually not advertised, dealer cash is paid by the manufacturer to the dealership to incentivize them to sell or lease a vehicle. How much of that amount the dealership is willing to pass on to the buyer or lessee will vary.

dealer lease cash

This is the same as dealer cash, but it only applies to vehicles leased through the automaker’s finance arm.

lease loyalty

A capitalized cost reduction that’s only available to current owners or lessees of vehicles from the same brand or automaker (i.e. Cadillac, Chevrolet and GMC; Hyundai, Kia and Genesis; Nissan and Infiniti). Lease loyalty offers are sometimes limited specifically to returning lessees and not people who own or finance another product from the same automaker. You typically do not need to turn in your current lease to qualify.

purchase loyalty

This is identical to a lease loyalty offer, but it’s applied to vehicles that are purchased or financed. You typically do not need to be trading in your current vehicle to qualify.

stand-alone APR %

A limited-time interest rate that cannot be combined with other stand-alone offers, a stand-alone APR can sometimes be combined with bonus cash deals.

stand-alone consumer rebate

This is a cash offer for buyers and lessees who buy their vehicles outright, or who finance or lease them through a third-party lender.

More Deal Articles From Cars.com:

• Hyundai Offering $3,000 Cash on Tucson Hybrid SUV
• $2,000 Conquest Cash on the 2025-26 GMC Canyon: Attention, Tacoma Owners?
• That Was Fast: Deals Aplenty on the Unnecessarily Powerful 2026 Toyota C-HR
• New Toyota bZ Woodland Already Has $5,000 Cash Back
• New Toyota Highlander Cash-Back Deals Before It Becomes an EV
• Add Cars.com as a Preferred Source on Google

Cars.com’s Editorial department is your source for automotive news and reviews. In line with Cars.com’s long-standing ethics policy, editors and reviewers don’t accept gifts or free trips from automakers. The Editorial department is independent of Cars.com’s advertising, sales and sponsored content departments.