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.

Car financing or rebate: What's the best deal?

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Monthly payment

Financing: $0
Rebate: $0

Total payment

Financing: $0
Rebate: $0

Total interest

Financing: $0
Rebate: $0
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Once you have purchased your vehicle, contact a State Farm® agent to learn more about car insurance or homeowners insurance and saving money when you bundle.

Customers may always choose to purchase only one policy, but the discount for two or more purchases of different lines of insurance will not then apply. Savings, discount names, percentages, availability and eligibility may vary by state.

Neither State Farm® nor its agents provide tax or legal advice. This calculator is for illustrative and educational purposes only. Its accuracy and applicability to your circumstances is not guaranteed. Please consult your own adviser regarding your particular circumstances.

The information in this article was obtained from various sources not associated with State Farm® (including State Farm Mutual Automobile Insurance Company and its subsidiaries and affiliates). While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. State Farm is not responsible for, and does not endorse or approve, either implicitly or explicitly, the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. State Farm makes no guarantees of results from use of this information.

State Farm Mutual Automobile Insurance Company
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Bloomington, IL

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Winter Haven, FL

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Richardson, TX

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