What Is a "Cash Allowance Incentive". Cash allowance incentives entice car buyers to car dealerships. Related Get personal loan hdfc bank. 1 Difference Between Sales Allowance Cash Discount 2 Calculate Net Realizable Value 3 What Is an Expense Account or Allowance. 4 Example of a Retail Store Cash Flow Statement. A term you will often hear thrown out there for interested car buyers is the "cash allowance" incentive. These incentives are usually offered in increments of 500 or 1,000, sometimes reaching as high as 5,000 or 10,000, depending on the type of vehicle.

However, the term "cash allowance" can be somewhat confusing, if not misleading. The primary purpose of a cash allowance is seen in the "incentive" it brings the customer.

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