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LEARNING ABOUT CHOICES TUTORIAL

Here is a comparison of some possible payment choices. Examples 1 and 3 illustrate special low finance rates (APR). Examples 2 and 4 show the impact of rebates on your monthly payment.

	Example 1 APR	Example 2 Rebate
Amount Financed After 10% Down Payment	$18,000	$18,000
Rebate	$0	$2,500
APR	3.9%	8.9%
Term	60 months*	60 months
Monthly Payment	$331	$321

In this scenario, the rebate is your better choice.

	Example 3 APR	Example 4 Rebate
Amount Financed After 10% Down Payment	$18,000	$18,000
Rebate	$0	$2,000
APR	2.9%	8.9%
Term	60 months*	60 months
Monthly Payment	$323	$331

In this-scenario, the APR is your better choice.

For purposes of these examples, no taxes, title or registration fees have been included. Those amounts will be extra.

*With special rates, there might be a limit on the number of months you can finance.

TIP

Should you go with a low APR or a rebate? - The simple answer: it depends. But as the chart shows, with a calculator and just a few minutes of time, you can find out which is best for you

Low APR or Cash Rebate? Which Should You Choose?

Keep in mind that special low financing rates may require a minimum down payment. If so, you should have your payment figured with:

The cash down payment and special low finance rate (Example 5)
The cash down payment plus rebate (Example 6)
The rebate as your down payment (Example 7)

	Example 5 Cash Down Payment + Low APR	Example 6 Cash Down Payment + Rebate	Example 7 Rebate as Down Payment
Amount Financed	$18,000	$18,000	$18,000
Cash Down Payment	$1,000	$1,000	$2,500 (all from rebate)
Rebate	$0	$2,500 (Used for down payment)	$2,500 (Used for down payment)
Total Down Payment	$1000	$3,500	$2,500
APR	3.9%	8.9%	8.9%
Term	60 months	60 months	60 months
Monthly Payment	$312	$300	$321

For purposes of these examples, no taxes, title or registration fees have been included. Those amounts will be extra.



Jump to:
1.	You've Got Choices	5.	The "Finance or Lease" Exercise
2.	Alternatives in Financing	6.	The Benefits of Money Down
3.	Low APR or Rebate - How to Choose	7.	Optional Products for Financing or Leasing
4.	Leasing Negotiation	8.	Your Options: A Review
		9.	Resources to Assist You

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