Rebate or special financing?
Car makers often offer a choice: a cash-back rebate that lowers the price, or a low promotional APR, sometimes 0%. You usually can't have both. The calculator compares the two:
- Cash back – the rebate reduces the amount you borrow, and you finance the rest at the rate from your own bank or credit union.
- Low APR – you borrow more, but at the special rate.
It shows the monthly payment, interest and total paid for each, and tells you which saves more.
Tips
- Get pre-approved by a bank or credit union before visiting the dealer, so you know your real rate.
- Promotional rates often require top credit and may only apply to shorter terms.
- If you are paying cash, take the rebate.
Frequently asked questions
When is the low APR usually better?
When the rebate is small, the loan is large or long, or your own lender's rate is high.
Can I negotiate the price and still get the deal?
Yes. Negotiate the vehicle price first, then apply the rebate or special financing.
Is the rebate taxed?
Manufacturer rebates are not income, but in many states sales tax is charged on the price before the rebate.