When buying a car, should you take the dealer's cash rebate or the low APR financing? This calculator shows you exactly which saves more money.
Dealer Incentive Comparison
Enter both options to find the better deal
🚗 Vehicle & Loan Details
$
$
months
💵 Option A — Cash Back Rebate
$
%
📊 Option B — Dealer Low APR
%
Best Choice
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You Save
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Cash Back Monthly
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Low APR Monthly
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Cash Back Total Cost
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Low APR Total Cost
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Detail
Cash Back
Low APR
Financed Amount
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Interest Rate
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Monthly Payment
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Total Payments
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Total Interest
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Effective Cost (incl. down)
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FAQ
Cash back or low APR — which is better?
It depends on the rates and rebate amount. Low APR is typically better for expensive cars and long terms. Cash rebate is better when market rates are reasonably low and you have good credit to get a competitive rate.
Can I negotiate after choosing the incentive?
Yes! Dealers often allow negotiation on price separate from the incentive choice. Try to negotiate the best purchase price first, then apply the incentive. Don't let the dealer conflate both conversations.
What if I pay cash for the car?
If you pay cash, take the rebate — always. The low APR only benefits buyers who finance. Cash buyers effectively "earn" the rebate as a discount off the price.
When does the low APR clearly win?
Low APR wins when: (1) the dealer rate is 0-2% and market rates are 7%+, (2) the loan amount is large ($40K+), and (3) the term is long (60-84 months). The interest savings compound significantly in these scenarios.