Auto manufacturers have a tendency to offer cash rebates and low rates of interest with car purchases made through them. These are usually mutually exclusive offers and not more than one may be available. You can use this cash back or low interest calculator to determine which offer you are getting is better than the other. The fee and tax procedures also apply to the vehicle purchases only within the United States. Those buying a vehicle in other countries might still be able to use this calculator but they must adjust accordingly.
It is simply an added deduction on your car's purchase price. Usually, the rebate amounts vary from $500 to $3000. Most of these rebates are offered by the car manufacturers and there are different reasons for that such as getting rid of any old inventory so that new vehicles can come in. So, these rebates are offered as incentives to the buyers.
There can be different options used for distribution of rebates. Instant rebates are the ones offered as immediate deduction from vehicle's negotiated price. Though it would be an ideal choice as you're getting rebates instantaneously, there are a few that come as mail-in rebate. The mail-in rebates are offered as prepaid credit cards or checks anywhere around 4-8 weeks after the actual purchase. This method is often used by the car dealers as they hope buyers to forget signing up for their rebate during given amount of time.
Other than the generic rebates that are offered to the potential buyers, some special rebates can also be offered like the ones for people serving in military, first-time buyers or current students.
If you have an excellent credit rating, you may be able to qualify for some extremely low interest rates for getting your vehicle financed. Sometimes, the rates of interest can be 0% as well. Just make sure that you determine whether such an option is available or not before you even think about it.
Car buyers can also expect introductory rates to be quite low as well if their credit history is great. However, sometimes, vehicle rebates are equally good too. You can also use this cash back or low interest calculator for help if you need. Generally, you just have to decide whether the rebates offered are greater than total interest amounts saved in low introductory price or not. If you want to take full advantage of low interest financing then you can consider paying off big portions of your loan during low rate time period. This will ensure that the payments aren't as high at the time when you have to pay regular rate.
The input values for this cash back or low interest calculator are, basically, divided into three portions. First is the cash back amount where you have to enter cash back amount and the rate of interest. Second is the low interest rate offer in which you can enter low rate of interest being offered to you. Finally, there is other general information like vehicle's price, loan term, trade-in value if any, down payment, sales tax, your state, title registration and any other fees that you might have to pay. Besides, you can mention if the TT&L fees should be included in your loan or not. Just hit the calculate button and the calculator will give you all the values including total loan amount, sales tax, upfront payment, monthly payments, total of your loan payments that you'll make during the term of your loan, total interest and the total cost including price, tax, fees and interest. The results will be shown for the cash back offer as well as the low interest rate offer.
The cash back or low interest calculator also tells you which of the two options is better and how much you'll be able to save with the better option. So, just use this calculator and decide how you can cut the costs of your vehicle further.