Cash Back Rebate vs. Low Interest Rate: Which Saves You More?
Cash Back Rebate vs Low Interest Rate Calculator
Common Information
($)
months
($)
(%)
($)
($)
Cash Back Rebate Offer
($)
(%)
Low Interest Rate Offer
(%)
Calculation Results
Cash Back Offer
Auto Price
Down Payment
Total Loan Amount
Sales Tax
Amount Due at Signing
Total Loan Payment
Total Loan Interest
Total Cost
Monthly Pay
Loan Payoff Date
Low Interest Rate Offer
Auto Price
Down Payment
Total Loan Amount
Sales Tax
Amount Due at Signing
Total Loan Payment
Total Loan 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 |
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| Month | Date | Payment | Principal | Interest | End Balance |
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Low Interest Rate Offer - Payment Breakdown
| Year | Date | Payment | Principal | Interest | End Balance |
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| Month | Date | Payment | Principal | Interest | End Balance |
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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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