When a Manufacturer Rebate Makes Financing Cheaper Than Paying Cash

Some rebates are available only if you finance through a preferred lender. If the rebate is larger than the added interest and fees required to obtain it, financing can beat paying cash, especially when the loan can be paid down quickly.

The important details are the rebate amount, APR, required payment period, prepayment rules, and whether the dealer changes other parts of the deal.

Model the rebate and financing terms in the calculator before deciding.