Rebate vs. Low Interest Calculator
A dealer offers either a cash rebate or a low promotional APR. Which one actually saves more?
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Inputs
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$
%
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Take the promo rate
$3,123.67
Total savings over the loan term
Rebate path payment
$751.42
Promo rate payment
$699.36
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How it works
We amortize the loan two ways: (price − rebate) at the standard rate, and full price at the promo rate. The cheaper total cost wins.
Frequently asked questions
Why aren't both available?
Manufacturer incentives are usually 'or' offers. Use whichever cuts total cost more for your loan term.
Can I negotiate either further?
Yes — focus on the vehicle's out-the-door price first; incentives stack on top.
What if I pay cash?
Always take the rebate. Promo rates are irrelevant if you don't finance.
Does my credit affect the promo rate?
Yes — the lowest rates usually require top-tier credit. Otherwise you may get a slightly higher promo rate.
Does the rebate affect taxes?
In most states sales tax is calculated before the rebate, so it doesn't reduce sales tax.
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