Low Rate or Cash Back?

When buying a new car and you get the option of a low rate or cash back, determining the most cost-effective way of payment can be difficult. Should you take out a low rate loan? Or should you take cash and add it to your down payment?

When working with a dealer or manufacturer, they will often offer incentives when purchasing a specific vehicle. While a low rate loan will mean a lower monthly payment, you might find that the interest savings you’ll gain by the low rate loan is less than the cash back amount. Use the below calculator to decide which option will ultimately save you the most money in the long run.

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The information provided by these calculators is intended for illustrative purposes only and is not intended to purport actual user-defined parameters. The default figures shown are hypothetical and may not be applicable to your individual situation. Be sure to consult a financial professional prior to relying on the results.