Dealers often offer a low APR or a cash rebate, not both. See which saves more.
This calculator compares a dealer's low-APR or 0 percent financing offer against taking the cash rebate instead and financing the vehicle at a bank rate.
Dealers often make you choose between a promotional APR and a cash rebate, because you usually cannot take both. Low-APR financing lowers your interest cost but keeps the full purchase price, while the rebate cuts the amount you borrow but leaves you financing at a normal bank rate. This calculator computes the total cost of each path so you can see which is cheaper over the loan.
A 0 percent dealer offer is hard to beat on a short term, but a large rebate financed at a modest bank rate can win, especially over longer terms. The result depends on the size of the rebate, the gap between the two rates, and how many months you finance. This estimate assumes fixed payments and ignores taxes, fees, and any qualification requirements for the promotional rate. Not financial advice.
Usually not, as dealers typically require you to choose one incentive or the other.
When the rebate is large or the bank rate is close to the dealer rate, cutting the loan balance can save more than the low APR.
Not always, because giving up a big rebate to get 0 percent can leave you paying more overall.
See the exact formula and a worked example on our methodology page.