Cash Back Rebate vs. Low Interest Rate: Which Is Better?
Find out which car purchase offer saves you more money.
Cash Back Rebate vs Low Interest Rate
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Calculation Results
| Comparison | Cash Back Offer | Low Interest Rate |
|---|---|---|
| Auto Price | ||
| Down Payment | ||
| Total Loan Amount | ||
| Sales Tax | ||
| Amount Due at Signing | ||
| Total Loan Payment | ||
| Total Interest | ||
| Total Cost | ||
| Monthly Pay | ||
| Loan Payoff Date |
Best Deal Recommendation
Auto Loan Payment Visualization
Cash Back Offer
Low Interest Rate Offer
Payment Schedule Tables
Cash Back Offer - Payment Breakdown
| Year | Date | Payment | Principal | Interest | End Balance |
|---|
| Month | Date | Payment | Principal | Interest | End Balance |
|---|
Low Interest Rate Offer - Payment Breakdown
| Year | Date | Payment | Principal | Interest | End Balance |
|---|
| Month | Date | Payment | Principal | Interest | End Balance |
|---|
If the Car Price Is $30,000 With a 5% Annual Interest Rate, Is Cash Back or a Low Interest Rate (2%) Better?
It depends on how much cash back you're getting. For example, let's say you have a $5,000 down payment, a 60-month loan term, and $1,000 cash back.
In that case, choose the low interest rate offer!
You'll save $1,882.94 compared to the cash back offer.
If $2,000 cash back, choose the cash back offer! The low rate will save you only $1,750.66 in interest, yet the cash back is $2,000.00.
References
Government Resources
- Consumer Financial Protection Bureau - Auto Loans
- Federal Trade Commission - Car Financing Guide
- USA.gov - Buying a Car
- National Highway Traffic Safety Administration
Financial Education
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