How it works
Compare a cash back rebate with a higher interest rate versus a lower interest rate with no rebate.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
6-
?price=Vehicle PriceNumber · Optional · Default: 35,000
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?tradeIn=Trade-In / Down PaymentNumber · Optional · Default: 5,000
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?term=Loan Term (Months)Number · Optional · Default: 60
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?cashBack=Cash Back AmountNumber · Optional · Default: 2,500
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?highRate=Interest RateNumber · Optional · Default: 6.5
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?lowRate=Low Interest RateNumber · Optional · Default: 1.9
Outputs
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resultResultText · Primary output
result contains the calculator’s complete rendered result area, including its visible result cards, tables, charts, and messages.
Choose the best dealership incentive
Description
When buying a car, dealerships often offer a choice between a “Cash Back” rebate (which reduces the loan amount but comes with a higher interest rate) or a “Low Interest” financing offer (no rebate, but lower rates). This calculator compares both options side-by-side to show you which one results in a lower total cost over the life of the loan.
Inputs
- Vehicle Price: The negotiated price of the car before incentives ($).
- Trade-In / Down Payment: The total value of your trade-in and any cash you are putting down ($).
- Loan Term (Months): The duration of the financing.
- Option 1 (Cash Back): The rebate amount ($) and the higher interest rate offered with it (%).
- Option 2 (Low Interest): The special lower interest rate offered with no rebate (%).
Outputs
- Better Option Analysis: A clear recommendation on which incentive saves you more money.
- Total Savings: The dollar amount you save by choosing the superior option.
- Monthly & Total Costs: A detailed breakdown of the monthly payment and total lifetime cost for both scenarios.
Chart
- N/A: This tool provides a direct financial comparison of two specific options.
“Good to Know”
- As a general rule, cash back is often better for smaller loans or shorter terms, while low interest is more beneficial for larger loans or longer terms.
- Always check if you qualify for the special low interest rate; it often requires a “tier 1” credit score.
- Some dealerships allow you to combine both—if that’s the case, simply enter the combo as customized inputs.
Examples
Example 1: Cash Back Advantage
- Input:
- Price: $35,000, Trade: $5,000, Term: 60 Mo
- Option 1 (Cash Back): $2,500 @ 6.5%
- Option 2 (Low Rate): No rebate @ 1.9%
- Output:
- Option 1 Total: ~$32,200
- Option 2 Total: ~$31,500
- Recommendation: Low Interest (Saves ~$700).
Example 2: Same Price, Shorter Term
- Input:
- Same as above but 36 Months.
- Output:
- Cash Back may win because the interest has less time to accumulate on the higher rate.
Example 3: Large Rebate
- Input:
- Cash Back: $5,000 @ 7%
- Low Rate: 3%
- Output:
- A large enough rebate often beats a small rate reduction, even for longer terms.