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This Auto Rebate vs. Low-Interest Financing Calculator will help you to decide if a This Auto Rebate vs. Low-Interest Financing Calculator will help you to decide if a traditional dealer-based financing with a manufacturer’s rebate is the most cost-effective solution for you, or outside financing with a lower interest rate will cost you less in the long run. Just input the relevant information about your auto and loan details and the calculator will give you a clear result to help you ensure that you make the best choice in your particular situation. You'll need information to hand such as the price of the car, the different interest rates and amount of the rebate.
Buying a new car is an important step towards independence, and requires a certain level of financial security. The decisions you will make when choosing your new car go far beyond color and style and will have lasting effects on your financial future.
For this reason, it is always a good idea to do your research and be aware of all the options that are available to you in the process. One decision you will need to make will be choosing between an auto rebate and a low interest type of financing on your auto loan.
An auto rebate is basically money given back to you by the auto manufacturer as an incentive to make the purchase. Low interest financing is a way of financing your new auto purchase that will allow you to have lower monthly payments as opposed to having a lower balance with the rebate.
The choice we are trying to make here is; is it better to owe less with high interest, or owe more with low interest?
Follow these steps:
This calculator is most useful if you:
The answer to this question is largely down to the manufacturer, and the agreement you make with them. However, it is worth noting that the results you see from this calculator assume that all payments are made on time. Refinancing the loan and/or making prepayments on the debt will also alter the result you see here.
It's simple - to increase sale volumes. Just like a discount you might find in the grocery store, car manufacturers use rebates to offer customers a slightly better deal on their brand. Sometimes, it's because sales are lagging and they've got excess inventory they want to move. Or to secure brand loyalty. It is common for a person to purchase the same car brand multiple times throughout their life, so by shaving 10% off the price now, the manufacturer is hoping to secure your business for decades to come.