How this calculator works
Option 1: the promotional APR on the price minus your down payment, with no rebate.
Option 2: the rebate reduces the amount financed, but you borrow at your own bank or credit union rate.
The calculator compares the total of payments for each option over the same term.
Get a pre-approval before visiting the dealer so you know your real alternative rate.
Worked example
$36,000 car, $4,000 down, $3,000 rebate or 0.9% APR, bank rate 6.5%, 60 months
- 0.9% APR: $545.62 a month, $32,737 in total.
- Rebate + 6.5%: about $567 a month, about $34,045 in total.
- The low-interest offer is cheaper by about $1,300.
Questions people ask
When does the rebate usually win?
When the rebate is large, the term is short, or your own rate is already low.
Do I need good credit for promotional rates?
Usually top-tier credit; check that you qualify before choosing.
Can I get both?
Rarely, but some promotions stack. Ask.
Is the rebate taxable?
No, a manufacturer rebate reduces the price. Some states still charge sales tax on the pre-rebate price.
Last reviewed October 2, 2026