Cash versus Rebate versus Low Rate Financing
This calculator compares taking a manufacturer's rebate with taking advantage of low interest rate financing.  The rebate will reduce your beginning loan balance, while the low interest rate financing will lower your payment.  Assuming equal cash down and loan term, the option with the lowest payment is the best option.

In addition, this calculator will compare paying cash with the two financing options.  Assuming that you have the cash available to pay for the entire vehicle upfront, the calculator will give you the break-even point between paying cash and taking a finance option.  If you can earn a higher rate of return on your cash than the break-even point, you are better off financing the vehicle and investing your cash.  If you expect to earn a lower rate of return on your cash than the break-even point, you are better off paying cash for the vehicle.
Click the calculator icon to perform the analysis
     
 
Agreed purchase price (excluding tax): Loan term (months):
Cash down: Sales Tax Rate:
Trade In Allowance: Amount Owed On Trade:
Click here if your state allows a deduction for trade-ins when calculating sales tax: Click here if your state calculates sales tax on the vehicle price before rebate
       
Low Rate Financing Option:

Traditional Financing Option:
Low Interest Rate: Traditional Financing Interest Rate:
Rebate (If any): Manufacturer's Rebate:

Calculated Values
Amount Financed: Amount Financed:
Monthly Payment: Monthly Payment:
Total Payments: Total Payments:
       
 Break-Even Rate: