Dealer financing may not be your best option
Before financing your new car with a dealership, first explore all your financing options.
Look closely at the low interest rates and manufacturer's rebates offered before accepting them as a good deal. Often, the dealer keeps your rebate and offers a shorter finance period than you want, or may include a balloon payment at the end.
With State Farm Bank®, you can use your rebate for an additional down payment to help lower your monthly payment.
Consider this example comparing dealer financing to bank financing:
| |
Dealer
Financing
|
Bank
Financing |
Annual Percentage Rate |
3.90% |
8.24% |
Purchase Price |
$ 12,000 |
$ 12,000 |
less down payment |
- $ 1,200 |
- $ 1,200 |
less manufacturer's rebate |
$ 0 |
- $ 1,500 |
Amount Financed |
$ 10,800 |
$ 9,300 |
Monthly Payments
(48 Months)
|
$ 243.37 |
$ 228.08 |
The above comparison assumes monthly payments on a 48-month term $12,000 vehicle loan with a down payment of $1,200. One loan is 3.9% APR with no manufacturer's rebate and the other loan is 8.24% with the manufacturer's rebate of $1,500. Rates may not reflect current interest rates. Example is for illustration purposes only.
To find the best deal for you, contact your participating State Farm® agent or compare your financing offers using the State Farm Car Loan calculator.
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State Farm Bank®
Equal Housing Lender
