Rebate vs 0% Financing Calculator
Compare two ways to pay for the same car: take the cash rebate and borrow the rest from a bank at its rate, or take the dealer's low-rate loan with no rebate. It shows the total paid for each over the same number of months.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Option one lowers the price by the rebate, then borrows the rest at the bank rate. Option two borrows the full price at the dealer's rate. Each total is the monthly payment times the number of months.
Only the loan is compared here. Check whether the offers can be combined, whether the rebate is paid to you or to the lender, and whether the bank rate matches the quote you were given.
Worked example
A car at $32,000.00 with a $2,000.00 rebate and a bank loan at 6.5% costs {totalA} over 60 months. The dealer's offer at 1.9% costs {totalB}. The gap is $1,650, and a plus means the dealer offer costs less.
Questions
Why compare the totals?
The totals show what each deal costs over the same months, which is easier to compare than the monthly payment alone.
Can I use a rebate with a low rate?
Sometimes. Many manufacturers offer one or the other, so ask the seller and read the terms.
What if the dealer rate is not zero?
Enter the rate on the offer. A low rate on a bigger loan can still cost more than a rebate, and the totals above show which.
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