Due to the recent sluggish economy and the sky high gas prices, most of the automobile companies are finding it tough to keep the sales record high. To overcome the low sales record, they are offering zero or low interest rate financing or cash rebates. With a little bit of number crunching, you will come to know the best car loan offer in your current situation.
The falling economy has laid adverse affects on the auto industry. Sales of the fuel efficient cars or those which run on alternative energy are still better. To increase the sales, auto makers are offering rebates and low interest finance packages. Take the advantage of the money saving opportunities by comparing these two offers side by side.
Interest rate vs. rebate
Check the interest rates on every car loan before you finance your car. Many car loans have introductory offers tied to low interest rate. Be sure to check the loan terms and conditions before accepting the loan. It won’t take too much time for a sweet deal can suddenly turn sour.
Cash-back rebates can range from $500 to $2,500. These are particularly popular among American manufacturers who are offering them as a method for reviving slumping sales.
Evaluating the offer: Whenever you crunch the numbers with different loan companies, you will come to know about the best deal. A thorough calculation on the tenure and the interest rate of the loan will give you the exact numbers of how much you are spending on the principal amount. For the rebate, subtract the dollar amount that the auto manufacturer will give you from the purchase price; then, calculate the total cost of the auto loan using conventional financing. For the low- or zero-percent interest financing, simply calculate the total cost of the loan.