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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. Dealers may keep your rebate, offer a shorter finance period than you prefer, or 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.

State Farm Bank deposit accounts are FDIC insured.

Financing Comparison

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 purchase price with a down payment of $1,200. One loan is 3.90% APR with no manufacturer's rebate and the other loan is 8.24% APR with the manufacturer's rebate of $1,500. Rates may not reflect current interest rates. Example is for illustration purposes only.

To find the deal that works best for you, contact your participating State Farm® agent or compare your financing offers using the State Farm Car Loan calculator.

State Farm Bank®, F.S.B., Bloomington, Illinois ("Bank") is a Member FDIC and Equal Housing Lender. NMLS ID 139716. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and may be subject to investment risk, including possible loss of principal invested. The Bank encourages any interested individual(s) to submit an application for any product(s) offered by the Bank. We also encourage you to obtain information regarding the Bank's underwriting standards for each type of credit or service offered by visiting® or by contacting the Bank at 877-SF4-BANK (877-734-2265); If you are deaf, hard of hearing, or do not use your voice to communicate, you may contact us via 711 or other relay services. To apply for a Bank product, you may also see your participating State Farm agent.