Is your head spinning with all the dealership promotions thrown at you? As if selecting a vehicle weren’t hard enough, figuring out pricing can be a bit of a challenge.
Depending on the dealership, you may be able to choose between a low promotional interest rate or cash rebate. Which is better?
There are pros and cons to each option. Here are some of the factors you should consider.
- Immediate savings are exciting with a cash rebate. It’s money in your pocket today, and we know how much we could all use a few extra dollars at this moment. Plus, monthly payments could be lower because you’re financing a smaller dollar amount.
- In a higher interest rate environment, a lower rate may be an attractive deal. Over the life of the loan, this type of promotion could potentially save you more than a cash rebate. However, there may be term restrictions, credit restrictions or a limited selection of vehicles to which the offer applies.
Ultimately, the choice is up to you. Be sure to do your due diligence.
