To make matters worse, it's common for dealerships and car salesmen to purposely mislead you about how rebates work. Well, fear not.
Rebates are a bad deal because there is always a catch.
A rebate is simply free money given to you by the Automobile Manufacturer as an incentive to buy that particular car. There is no trick or trap. So take the money and smile. Rebates are part of the dealership's discount. Rebates are simply free money given to you by the factory and should not be confused with the negotiated selling price.