BANKING

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.

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 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.