Total dollars saved
--
Lowest total cost
Example calculation
Recommended
Comparing financing options...
Recommended choice
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Lowest net cost
Monthly payment difference
--
--
Break-even bank rate
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Rate where costs tie
Side-by-side comparison
| Factor | Option A: 0% Promo Financing | Option B: Cash Rebate + Bank Loan | Difference |
|---|---|---|---|
| Vehicle Price | -- | -- | Rebate applied to B |
| Sales Tax (8%) | -- | -- | Identical tax base |
| Amount Financed | -- | -- | -- |
| Monthly Payment | -- | -- | -- |
| Total Interest | -- | -- | -- |
| Total Out-of-Pocket Cost | -- | -- | -- |
Bank rate sensitivity table
How outside bank or credit union interest rates impact the rebate option:
| Bank APR | Monthly Payment (Rebate) | Total Interest | Total Cost | 0% Promo Advantage |
|---|
How this estimates
Automakers frequently present buyers with an either-or decision: take an introductory zero percent interest rate (or low-interest incentive) or take an upfront cash rebate.
Taking the cash rebate reduces the principal you need to borrow, but the loan incurs finance charges at your outside bank or credit union rate. If the bank interest rate is relatively high, the total interest paid over 5 or 6 years will often exceed the rebate amount.
In New York State, manufacturer rebates do not reduce the sales tax liability; sales tax is assessed on the full purchase price before the rebate is credited. A trade-in allowance, however, directly reduces taxable sales price.
Disclaimer: A planning estimate based on your inputs and the assumptions shown. Actual costs and eligibility may differ. Not an offer of credit, financing pre-approval, or financial advice.