Dealers love presenting this as a simple choice: take the cash rebate, or take the low promotional rate. It's rarely simple — it's a real math problem with a specific answer for your numbers.
Cash rebate vs 0% financing calculator, why they're not directly comparable
The two options aren't apples to apples: the rebate reduces what you finance but leaves you at the standard rate, while the promo rate applies to the full price with no rebate at all. Which wins depends on the size of the rebate, the gap between the two rates, and the loan term.
Which is better cash back or low apr, a worked example
On a $35,000 car over 60 months: taking a $2,500 rebate and financing $32,500 at a 7.5% standard rate costs $39,074 total. Skipping the rebate and financing the full $35,000 at a 1.9% promo rate costs $36,716.50 total — the promo rate wins by $2,357.50 in this case.
Car dealer financing comparison calculator, when the rebate wins instead
The result flips with different numbers — a larger rebate, a smaller rate gap, or a shorter term can all tip it the other way. There's no universal answer; run your actual offer's numbers rather than assuming either option is automatically better.
