Skip to main content Skip to footer

Auto Rebate vs. Low Interest Financing

Which option makes the most sense?

Some car manufacturers may offer a rebate or low-interest financing to reduce the overall cost of the car and monthly payments. A rebate will reduce your starting balance. Low-interest financing may lower your monthly payments than monthly payments with a regular interest rate. This calculator can help you determine how a cash rebate at the beginning compares to a lower interest rate throughout your auto loan.

Vehicle Information
Like your estimated calculations?

No need to wait, you can apply for an auto loan today!

Auto Rebate vs. Low Interesting Finance Calculator Key Terms:

  1. Cash Rebate
    The cash rebate paid by a car manufacturer to reduce the overall price of a car.
  2. Loan Term (Months)
    The number of months you will make payments on your auto loan. The most common loan terms are between 36 and 84 months.
  3. Regular Interest Rate
    An interest rate is how much you will pay each year to borrow money from TDECU, your bank, or your lender expressed as a percentage. While often higher than a special low-interest rate, a regular interest rate is generally competitive when paired with a cash rebate.
  4. Special Low Interest Rate
    Some manufacturers offer interest rates significantly lower than the regular interest rate. While enticing on its own, a rebate may make more financial sense. Use this calculator to determine the best option for you.
  5. Vehicle Down Payment
    The total amount of cash paid at the time of purchase. The larger the initial down payment, the smaller the monthly payments and overall loan amount.

Our financial calculators are provided as a free service to our Members. The information these calculators supply is from various sources based on calculations we believe to be reliable (but are not guaranteed, explicit, or implied) regarding their accuracy or applicability to your specific circumstances. All examples are hypothetical and illustrative and do not intend to provide investment advice. TDECU does not accept any liability for loss or damage whatsoever, which may be attributable to the reliance on and use of the calculators. Use of any calculator constitutes acceptance of the terms of this agreement. TDECU recommends finding a qualified professional for advice about your personal finance issues.