What’s the Better Deal?

0% Financing vs. Cash Rebate
If you're in the market for a vehicle, take the time to get a closer look before you sign on the dotted line.

Do your homework on vehicle pricing. Be sure the dealer offering the 0% financing is reputable and will not inflate the price of a vehicle to makeup for the lost finance charges or make negotiating the price difficult. A reputable dealer will allow you to negotiate the best possible deal before applying the 0% finance to your sale.

Your vehicle choices with 0% financing may be limited. Dealers will often place 0% financing on vehicles that are only on the lot and do not apply to new or popular vehicles. Many no-interest deals cannot be combined with other offers. If the dealer is offering a cash rebate and 0% financing, you often have to choose one or the other, not both. Be sure to calculate the best deal before deciding so you do not lose out on saving money.

Many do not qualify for no-interest deals. At times the deals are reserved for buyers with the best credit. You may also need to reach a predetermined annual income level to qualify. Find out upfront if you meet the requirements for 0% financing.

Even if you are one of the few who quality for 0% financing, be sure to weigh your options and know if you are getting the best deal. You may come out ahead by applying a rebate to the purchase price and using your own low–interest rate loan.

Below are two charts comparing interest-free and cash rebate.
Evaluate your options to see which is option is best for you.

Interest-Free Rate vs. Cash Rebate Comparison Chart

63 Mo. Comparison

APR	0.00%	4.24%*
Sample Loan Amount	$15,000	$15,000
Less Equity in Trade	$2,000	$2,000
Less Rebate	$0	$2,500**
Amount to Finance	$13,000	$10,500
Monthly Payment	$206.35	$186.20
Total Cost	$13,000.00	$11,730.38
Savings	$0.00	$1,269.62

*St. Mary's Bank lowest available APR for 63 month New Auto Loan with automatic payment from a St. Mary’s Bank Beyond Checking account and a Trans Union Auto Specific Fico score of 730 or above. Rates subject to change without notice. **Estimated available rebate

Interest-Free Rate vs. Cash Rebate Comparison Chart

75 Mo. Comparison

APR	0.00%	5.15%***
Sample Loan Amount	$25,000	$25,000
Less Equity in Trade	$2,000	$2,000
Less Rebate	$0	$4,000****
Amount to Finance	$23,000	$19,000
Monthly Payment	$306.67	$296.83
Total Cost	$23,000.00	$22,261.93
Savings	$0.00	$738.07

***St. Mary's Bank lowest available APR for 75 month New Auto Loan with with automatic payment from a St. Mary’s Bank Beyond Checking account and a Trans Union Auto Specific Fico score of 730 or above. Rates subject to change without notice. ****Estimated available rebate