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 (APR)||3.90%||8.24%|
|Less down payment||- $1,200||- $1,200|
|Less manufacturer's rebate||$0||- $1,500|
|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 3.90% 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 best deal for you, contact your participating State Farm® agent or compare your financing offers using the State Farm Car Loan calculator.
State Farm Bank®, Bloomington, Illinois, 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 subject to investment risk, including possible loss of principal invested. Contact State Farm Bank toll-free at 877-SF4-BANK (877-734-2265). Callers who are hearing or speech impaired should dial 711 or use a preferred Telecommunications Relay Service.