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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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