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REBATE OR LOWER INTEREST RATE?
When buying a car from a dealer, you are likely going to have make a decision....accept a rebate off of the price of your car, or agree upon a lower auto loan financing rate.

Are you a first time buyer?
If you have never purchased a car before, or your have bad credit, you will probably be better off accepting the cash rebate. On the contrary, if you have purchased cars in the past, and you have good credit, the lower interest rate is going to be the better deal for you.

Everyone is entitled to factory rebates!
Every person buying a car from a dealership is entitled to receiving a manufacturers rebate. However, not everyone is entitled to receiving a break in financing. Although financing can be provided to people with bad credit and no credit, it is unlikely that any sort of deal for financing will be offered unless you are someone with a positive credit history.

That being said, if your credit is not the best, you will want to look for a car that offers a nice manufacturer's rebate.

A manufacturer's rebate will also be beneficial for those that are first-time buyers that do not have a lot of money for down payments or an automobile to offer for trading in. 

Rebates come and go! ACT FAST!
If you are in the market for a car, and you see some attractive rebate offers on TV or in the newspaper, you better act fast! The rebates offered are usually only available for a few days. However, when a rebate offer disappears, a new one pop ups.

Sites like Edmunds and the AutoSite list the most up-to-date rebate offers.

Which is the better deal?
Below is an example of rebate vs. lower financing. The offer is this: You can either accept financing for a new Audi for $20,000 at 7% for four years, or take 10% financing for four years, but receive a $1,000 rebate.

Take 1/2 of the loan amount and multiple by the difference of the two finance rates. This would be $10,000 x 3% = $333.34

Then multiply that $333.34 by four, the number of years of your car loan. The result is $1,334. Since the rebate is $1,000, you would save $344 more by selecting the lower finance deal.

However, if you took the money you received from the rebate and invested it, you would likely earn more of a return than what you would save from the lower financing. Or, you can use the money from the rebate to take a trip or make some sort of purchase that you would not normally be able to make due to a lack of funds.

Get the best deal on financing!
If rebates are not being offered, or the rebate is not too favorable, try and get the best deal that you can for your financing. Star Loan Services offers low rate auto loans for purchases from dealers. We will help you secure the financing you need even if you have bad credit. APPLY NOW FOR AUTO LOANS!

Remember, before you decide to utilize financing directly from a dealership, check out the rates we offer. Dealers act as a middle man and make money of the financing arrangement. Getting financing from a dealer is not the best idea.
 


 

 

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