new car rebates  

Getting a Great Deal on a New Car - Rebate Vs Special Financing

Right now, with the automotive industry in turmoil, we're being bombarded with promotions and incentives right and left. Crazy huge rebates, special loan deals (yes, even now, with the credit market somewhere in the vicinity of the earth's center), blahblahblah yada yada yada. It can be pretty well overwhelming when you're in the market to take advantage of the good deals. Something a lot of people miss in this maelstrom of information is that when you get a situation where both a rebate and a special financing rate are offered they're usually mutually exclusive options; you can have one or the other, not both.

So which is better, the rebate or the financing?

It depends on the situation.

If you're trading in a car that you have a substantial amount of negative equity in and your credit is good, then a good rebate is probably the best way to go -- especially if you don't have much of a down payment. The rebate will help eat up the negative equity and put you in a better position, payment-wise; it could even negate the need for a down payment altogether (though I don't recommend this in a negative-equity situation at all since a down payment will do nothing but help your cause).

If you don't have a heavy negative equity situation, the promotional interest rate is an excellent way to go. Low interest rates will save a great deal of money in the long run, and if you qualify for them then they can be a huge asset. In situations where the cash rebate is small and you qualify for the low interest rate, the low rate is almost always the better choice to make as it saves a great deal more money in the long run. Just be sure to check the full terms of the promotional rate; that 0% financing rate may only be for a short term loan, or only applicable on one particular model of car.

As always, knowledge is going to be your strongest asset. Being familiar with the details of the offers will help you make a better, more educated choice.
Why is "cash for clunkers" called a success?(THE LAST WORD)(Viewpoint essay): An article from: The New American
by Devon Walton