Calculate the best choice: New car rebate or special financing
Is it the best move to go with the special dealer financing? This online tool can help you find out.
When you are in the process of buying a car, there are things you may want to consider including the incentives offered by dealerships. Typically, there are two types of incentives you might be offered: new car rebates and special auto loan rates. Before you use this auto loan calculator to help determine the better deal for you, here is some information to keep in mind.
- Rebates - A car rebate is money that you get back when you purchase your new car. Rebates are usually offered by the car manufacturer and can be received as a sum of money or applied to the down payment of your car. Not all cars made by the same manufacturer will have rebates available at the time of purchase.
- Special financing rates - Dealerships may offer special rates for you to finance a car. Check if they are offering zero percent financing, but it might not always be an option since it will depend on many factors including your credit score and income. Remember to ask if the low car loan rate offer is for the life of the loan or a limited time, such as the first 6 months after purchase. Keep in mind that some of the low financing offers may only be available for certain car models.
- Do your research - Compare the cars you are considering along with the different dealerships that have similar car inventory. Some of them may offer different incentives and financing rates. Once you have decided on the type of car you want and where to buy it, confirm with the dealership how long a rebate will take to be issued and if there are any special conditions or rules related to the low financing offers.