Which Offer Could Save You More: Low Rate or Cash Rebate?

Is your head spinning with all the dealership promotions thrown at you? As if selecting a vehicle weren’t hard enough, figuring out pricing can be a bit of a challenge.

Depending on the dealership, you may be able to choose between a low promotional interest rate or cash rebate. Which is better?

There are pros and cons to each option. Here are some of the factors you should consider.

Immediate savings are exciting with a cash rebate. It’s money in your pocket today, and we know how much we could all use a few extra dollars at this moment. Plus, monthly payments could be lower because you’re financing a smaller dollar amount.

In a higher interest rate environment, a lower rate may be an attractive deal. Over the life of the loan, this type of promotion could potentially save you more than a cash rebate. However, there may be term restrictions, credit restrictions or a limited selection of vehicles to which the offer applies.

Ultimately, the choice is up to you. Be sure to do your due diligence.

This calculator could help you see the difference between these two types of offers and make an informed decision about the best one for you.

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Make car buying better with a pre-approval

Focus on the features of the car you want instead of stressing about financing.

Be confident in your buying power and eliminate potential headaches before you start shopping. Ask our lending team about applying for pre-approval!

Have questions about vehicle financing or applying for pre-approval? Speak with a Vantage staff member today.

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