Car Rebates Actually Started In The ’70s With A Chrysler Super Bowl Ad

The origin story of automotive rebates begins on January 12, 1975, during halftime at that year’s Super Bowl. The Minnesota Vikings trailed the Pittsburgh Steelers 0-2. Chrysler Corporation had a huge backlog of new cars sitting in inventory and needed a way to move them into the possession of retail customers. In Chrysler’s case, this oversupply of unsold inventory was equal to 138 days of production. In response, Chrysler had laid off 50% of its white-collar workers and closed down five out of its six production facilities. Things were getting very bad.

The pitch was made by former Major League Baseball catcher Joe Garagiola, who had a much more successful second career as a television personality. His on-air credits included time as an NBC sportscaster, occasionally guest-hosting both the “Today Show” and “Johnny Carson’s Tonight Show”. He had also become the person doing TV spots for Chrysler’s Dodge Division, making him the perfect pitchman for what came next. Joe Garagiola promoted what Chrysler called its “Chrysler’s Car Clearance Carnival,” in which, after consumers made their best deal with their local dealer, the Chrysler Corporation would send them a check for $200. 

While this might not seem like much, keep in mind it was the equivalent of $950 in today’s dollars. His “Buy a car, get a check!” touched a chord in consumers nationwide, and rebate mania was born. This automotive marketing trend has continued to the present day, including our recent list of cars with the best discounts in Spring 2026, according to Consumer Reports.

As a way to capture potential customers who owned non-Chrysler brands, Chrysler also offered customers ways to get more for their vehicle trade-in; specifically, those who traded in a Chevy Vega or a Ford Pinto would then get an extra $100 each.

The amazing success of this Chrysler promotion forced the other Detroit auto manufacturers to jump into the rebate game. First was Ford, offering rebates from $200-$500 on their smaller cars, followed by General Motors, who also offered similar amounts on their compacts and subcompacts. Even American Motors, whose downfall can be traced back to one tragic moment, got in on the rebates, providing from $200 to $600 per car. Rebates were suddenly a thing that juiced sales, and everyone wanted a piece of the action.

The good news for Chrysler was that its Car Clearance Carnival reduced the company’s inventory levels to the least they’d been within the past seven years. Chrysler’s Vice President of Sales stated that it was “the most innovative and dramatic thing we have ever done…” So, the promotion was a success, but when the Clearance Carnival stopped in March 1975, so did the sales. Chrysler revived it in May, continued it into June, then stated that rebates would be retained until further notice. Today, a wide variety of incentives are offered to car buyers, including rebates like Chrysler’s, low APR financing, leasing deals, loyalty programs for current owners, and bonus cash for the military or college graduates.