Everyday ResiliencyCash Back vs. Low APR Car Loan Calculator
Car dealers often make you pick: cash back, or a low interest rate. Slide in your numbers and see which deal costs less in total, with taxes, fees, add-ons and interest included.
The car
The two deals
Deal A Cash back ✓ Winning deal
From your bank or credit union. Getting pre-approved before you shop gives you this number.
Deal B Low APR ✓ Winning deal
No rebate with this deal. Promo rates usually need excellent credit.
Full cost of the car, everything included
Price after any rebate, plus tax and fees, add-ons and loan interest. Interest is the cost of borrowing.
Where your loan rate tips the scale
Taxes and fees
It depends on your state. "Before rebate" is the safer guess until the dealer tells you.
Add-ons the dealer offers
The finance office usually offers these after you agree on a price. Prices are typical asking prices and are often negotiable. You can say no to any of them.
What this doesn't show
- The price matters most. Agree on the price of the car first, then talk about the rebate or the financing.
- Promo rates need strong credit. If the dealer won't approve you for the low rate, the rebate may be the only real offer.
- Long loans cost more and can leave you owing more than the car is worth for the first few years.
- Taxes and fees are assumed to be rolled into the loan. A trade-in is assumed to lower the taxable price, which is true in most states but not all.
- The full cost includes your down payment and trade-in, so both deals are measured the same way.
I'm not a financial advisor, and nothing here is financial advice. See the disclaimer.