Should you take dealer cash back or a lower interest rate offer? This calculator tells you which option saves more money.
Dealers often offer two incentives: a cash rebate you apply toward the purchase price, or a special low-interest financing rate. The cash rebate reduces your loan principal, while the low rate reduces your finance charges. This tool calculates which saves more over the loan term.
Cash back tends to win when your bank's rate is close to the dealer's special rate, or when the cash back amount is large relative to the loan.
Low dealer financing wins when the rate difference is significant (e.g. 10% vs 0%) and the loan amount is high or the term is long.