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Car Payment Calculator: Low Rate or Cash Back?

Which Should You Choose?

Vehicle manufacturers or dealers will often offer incentives to purchase a particular vehicle in the form of a low-rate loan or a cashback incentive. While a low-rate loan sounds attractive, you might be better off taking the cash back, using it to add to your down payment, and reducing the loan amount for the vehicle. Evaluate which option is best. A lower loan amount will mean a lower monthly payment, and you might find that the interest savings you will gain by the low rate loan are less than the cashback amount.

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