Low Rate or Cash Back?

Low Rate Option

Loan Amount
$ 25,000
Monthly Payment
$ 437.10

Cash Back Option

Loan Amount
$ 24,500
Monthly Payment
$ 461.22
Over the repayment period of the loan, bypassing the rebate and taking the low rate financing will save you $1,447.34

Vehicle manufacturers or dealers will often offer incentives to purchase a particular vehicle in the form of a low rate loan or a cash back incentive. While a low rate loan sounds attractive, you might be better off taking the cash back, using it to add to your down payment and reducing the loan amount for the vehicle. Evaluate which option is best. A lower loan amount will mean a lower monthly payment, and you might find that the interest savings you will gain by the low rate loan is less than the cash back amount.