As Summer is heating up, so are incentives to drive car sales. The question is, do I take the low interest incentive or the rebate? It is an either or situation so a choice has to be made. The dealership will help you with your decision, but take a proactive approach and decide for yourself to make sure you are getting the best deal possible. First, you must find out what type of interest rate you will receive if you take the rebate. You can apply at a reputable finance company online to find out. I suggest Capital One because they have interest rates from the best of rates, to rates for those with less than perfect credit. You can fill out a short form with the type of car you are looking at to find the rate you will receive. Another good benefit of Capital One is that they will send you a blank check that can be filled out by the dealership, so essentially you are a cash buyer. Now that you know the rate you will receive, check and see what the low interest incentive is and the rebate on the auto you are looking at. You can get this from the dealership or you can go to the respective manufacturers website (ie gm.com). After you have this info., use a payment calculator and see which way is more beneficial. Something to consider, if you trade often, take the rebate! This will make your payoff less when you go to trade as most interest charges will be deducted when a payoff is figured. Bottom line, take some preparation before going to the dealership. If you are unsure, have the dealership figure both ways for you and analyze the results. Ask the Salesman for their opinion, most have nothing to gain by giving you advice on rebates versus low interest unless they get paid on the back end, meaning they get paid on finance income, which most do not. |
