Buy a minivan, get $1,500 for college?

Volkswagen is introducing a new minivan to the US market next month and it is also introducing a fairly innovative incentive. If you purchase or lease a Routan minivan by August 31, 2008 and take delivery by November 30, 2008, Volkswagen will deposit $1,500 into an account held by its partner in this effort, Upromise. Money deposited into the Upromise account can then be moved into a Section 529 college savings fund. The cost of the brand new Routan ranges from $24,700 for the S model to $38,400 for the SEL. For more information on this offer, you can visit the Upromise website.

Volkwagen reports that 6,000 people have signed up for the offer so far, but is this really a great deal? Maybe, maybe not. Oftentimes, when dealers are running special promotions like this, they are less willing to "deal" on the price of the car. So, you might get a $1,500 contribution to a 529 plan but maybe if they weren't running a special, you would have been able to pay $1,500 less for the car simply by being an aggressive negotiator. You are probably still coming out a little bit ahead with promotions like these (and the ability to negotiate well) but you probably aren't really getting a $1,500 windfall.

That being said, are there really any "no brainer" ways to grab free cash for college? The Upromise program is probably as close as you will come. Upromise has been around for about 7 years and it has more than 8 million members. The company reports that its members have earned over $425 million in member rewards. Membership is free and you earn credits by shopping at grocery stores, drug stores, gas stations, and restaurants that are part of the Upromise network.

I also like the credit cards that credit a percentage of everything you charge to a 529 account. My favorite is the Fidelity 529 College Rewards Card. 1.5 percent of everything charged on this card gets credited to a Fidelity-managed 529 account. There is an annual maximum reward contribution of $1,500 but you would have to charge over $100,000 per year in order to bump into that limit. Grandparents and other relatives can also get their own cards and their credits can be directed to your child's 529 account. If you pay off your credit card bill each month, this could be a good card for you. With college costs rising so rapidly, every little bit helps.