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Rebate or Low Financing?


Taking the Guesswork Out of Saving Money

It’s a question that has perplexed car buyers for some time. Which to choose: the manufacturer’s rebate or low financing? Fortunately, CUDL AutoSMART can help you take the guesswork out of saving money.

In the salesroom, of course, the choice has never been easy. You’ve taken your time to decide just what kind of car you want, what options, even what color. You’ve taken a test drive or two, and are confident that you know what you want.

Now it’s time to make the deal. The sales agent takes out a contract and begins asking questions. It’s all going well until he turns to you with a big smile and asks, “Which do you prefer, 0% financing, or the rebate of $2,500?”

They both sound enticing; it’s tough to beat 0% financing, but it’s also nice to get a portion of the price taken right off the top. So how do you decide which is the better option for your wallet?

The real question, of course, is what is the total amount that you will pay over the life of the loan? Will all the payments, plus that low (or no) interest, add up to more or less than a loan for a lesser amount (after rebate) at a slightly higher rate of financing? Over the life of a loan that will last several years, the answer does matter, and CUDL AutoSMART can help you determine which option is the right answer.

To determine which option is best for you, go to the financing calculators on the “Finance” page and click on “What Can I Afford?”

Enter the required information including price, taxes, financing percentage, length of loan, down payment, and cash rebate.

You may be surprised at your answer. Quite often the rebate is your better option, especially if you couple it with financing through your local credit union. Credit unions typically can provide their members with a great loan rate, which then can be applied towards a lower overall purchase price, after taking that nice rebate offer.

At last, you can feel at ease when being confronted with the rebate or 0% financing option. And remember to give that salesman a big smile when you tell him your answer.

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