Picking the Perk That’s Right for You

Low interest financing, zero-interest financing, a cash rebate? Deciding which deal is best for you can mean the difference between a good deal and a great deal on a new vehicle.

The U.S. automobile industry has surely taken a beating these last few years and it shows in their unwillingness to put just anyone behind the wheel of a pricey automobile. These days you better have great credit before you walk to the local dealership, but if you do, there are great deals to be had. Just make certain you carefully examine the deals before you decided which is right for you.

With a zero-rate or low-interest rate vehicle loan you get exactly that. A lower interest rate. You need to have some really outstanding credit to qualify for one of these loans but they offer you a really good deal if you can get one. You can also expect to put a lot more money down on your new vehicle, even with great credit. Banks simply don’t take the kind of chances with their money the way they once did. They need to know that you have a history of paying your debts off and know how to properly handle your finances if you expect them to loan you money.

Even little things such as a mistake on your credit report can be enough to cost you the very best interest rate. Be certain to check your credit report before you apply for an automobile loan. This will give you a chance to have any errors on your report fixed before someone else starts checking it.

If you are just looking at the best rebate deal you can find there are many to choose. Most American manufacturers are offering rebates of $500, $1,000 and even $2,500 in an effort to entice new buyers onto the lot. Some dealerships will even tack on a little rebate of their own when you buy from them.

The best way to know which deal is best for you, low-interest or cash back, is to do a side-by-side comparison of the deals. Get out your calculator and start adding it up. Following the financing rate and calculate how much the total cost of the loan will be. If that amount is less than the cash rebate you are being offered, go with the rebate. If it’s more than the cash rebate, then go for the low interest loan.

In all likelihood the loan officer at the bank will help you with the calculations. They want to get you the best deal so will be more than willing to help you find it. The financing department at the dealership will do the same thing, but they will likely try to tack on things you don’t need or want.

The dealers want to sell you a car and all the bells and whistles to go along with it. The bank just wants to loan you the least amount of money needed and be certain you pay it back. There are also plenty online calculators to help you figure it out, if you prefer to do-it-yourself.

Do your homework, do the math and get the best deal on the brand new vehicle you want.

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