Should You Take the Car Rebate or the Zero Percent Car Financing?

car rebate
By knowing the latest auto rebates & incentives being offered, you can save thousands on your new car purchase. Request a quote now!

Every dealer has a range of programs to attract customers into their showrooms. Some of these incentives involve a generous car rebate or low APR financing, sometimes as low as zero percent. These are two good options if you want to save money. How do you determine which one is best for you?

The new car rebate may come in handy if you don´t have a down-payment. Just ask the salesperson to apply the "cash back" as your down payment, which will lower your monthly payments. On the other hand, you may already have a down-payment set aside for your new car. Low APR financing could help you save a ton of money.

Getting a loan with zero percent interest is like borrowing money for free, no extra charges involved, with only the condition that you pay some of it back each month. When a car rebate is offered, things tend to get a little more complicated as you´ll have to choose between it and any other incentives being offered. So what´s it going to be, the zero-percent financing or the juicy car rebate? Let´s take a look at them.

The first basic rule when zero percent financing deals come up is to know if you qualify for them. Not everyone can benefit from this kind of deal. There are several conditions you need to meet to take advantage of no interest financing. Here are a few:

  • Have a very good credit score, usually prime credit.
  • Have a history of on-time loan payments
  • At the moment of the purchase, be able to make a good down-payment for the model you want or have a trade-in with high equity.

Don´t worry if you´re not eligible for zero percent financing, there are other great dealer incentives and rebates that will help you save a ton of money anyway. Many incentive programs include low but not 0% financing. You may get 1.9%, for example. That can also help you save.

To help you do the math, use a reliable online car loan calculator. These will help you decide what choice is the best one for you; the car rebate or the low financing. In order to give you an accurate figure when you consult them, online calculators will usually ask you for the following data:

  • Final price of the vehicle
  • The down-payment amount you´ll give
  • If you´re trading in your old auto, the vehicle´s equity
  • Your state, to calculate the state´s tax rate
  • What incentive or car rebate is being applied to your deal
  • The APR financing rate applied to your deal

After providing this information, you´ll get an instant figure that will help you determine which incentive program would save you the most money.

Request a free price quote on any new car and find the best possible car rebate deals at the lowest price in your town!