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 (APR) 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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