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Rebate or Low-Rate Financing? Car buyers often face
this dilemma, and the decision isn’t obvious.
- You can use a Factory Rebate:
- As a down payment toward your purchase, lowering the
amount financed, or
- In the form of a manufacturer’s check, to use
as you wish.
- Low-Rate Financing, on the other hand,
sounds great too-until you crunch the numbers. The amount
financed has a larger impact on monthly payments and total
interest charges than the interest rate does.
Take an offer for 0% financing for 24 months or a $2,000
factory rebate on a $20,000 purchase. If you take the credit
union’s rate of, for example, 6.5% and the rebate (thus
financing only $18,000), you actually would save about $30
a month.
Discount financing plans generally are limited to shorter
lengths and use a sliding scale where the best rates are for
the shortest terms. And there isn’t always one rate.
You may find 0.9% on 24 months, 3.9% on 36 months, and so
on. Low-rate financing terms often are so short that most
people can’t afford the monthly payments.
To find out which is better for you, use our Rebate
vs. Special Financing Calculator.
- New Auto Loans
- New Boat Loans
- 1st Mortgage
- Signature Loans
- VISA
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- Used Auto Loans
- Used Boat Loans
- 2nd Mortgage
- Line Of Credit Loans
- Share Loans
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*******Now offering GAP Protection*******
Auto insurance might not be enough. If your vehicle is stolen,
accidentally damaged beyond repair, or otherwise declared
an insured total loss, your auto insuance will cover the replacement
value. Nevertheless, you remain liable for payment of the
difference between the insurance and your loan balance.
This is an affordable way to fill the gap. It's easy to get.
You can get protection at the same time you apply for your
vehicle loan.And your GAP premium can be rolled into your
loan payment.
Please contact a loan officer
for more information.
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Equal
Housing Lender.