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However, banks will only allow so much additional money to be tacked onto the loan. This usually depends on the value of the vehicle being purchased and the maximum allowable loan the bank will approve. Cash allowance incentives can be used by the dealership to erase some or all of the negative equity that the car buyer has, allowing the loan to be approved. The amount of the cash incentive generally depends on the type of vehicle being promoted.
In most cases, the incentive will be smaller for pnb cash loan for ofw expensive vehicles and significantly higher for high end vehicle that carry a bigger sticker price. Vehicles that have more options and a higher profit margin built into the sticker price will generally have a higher incentive.
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