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How car rebates work Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make smarter financial decisions by offering interactive tools and financial calculators as well as publishing original and objective content. We also allow you to conduct your own research and compare data for free to help you make sound financial decisions. Bankrate has partnerships with issuers including, but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money The offers that appear on this site come from companies that compensate us. This compensation may impact how and when products are featured on this website, for example, for example, the order in which they may appear in the listing categories, except where prohibited by law. Our mortgage, home equity and other home lending products. But this compensation does have no impact on the content we publish or the reviews appear on this website. We do not include the vast array of companies or financial offers that may be open to you. Don Mason/Getty Images

3 minutes read. Published October 21, 2022

Writer: Rebecca Betterton Written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the ins and outs of securely taking out loans to buy an automobile. The article is edited by Chelsea Wing Edited by student loans editor Chelsea is with Bankrate since early 2020. She is invested in helping students to navigate the steep cost of college as well as dissecting the complexity of student loans. The Bankrate promises

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At Bankrate we aim to help you make better financial decisions. While we are committed to strict ethical standards ,

this post may contain some references to products offered by our partners. Here’s a brief explanation of how we earn money . The Bankrate promise

Founded in 1976, Bankrate has a proven track experience of helping customers make informed financial decisions.

We’ve maintained this reputation for over four decades by simplifying the process of financial decision-making

process, and giving people confidence in the decisions they will take next. process and gives people confidence in the next step.

so you can trust that we’ll put your interests first. All of our content is created by and edited by ,

who ensure everything we publish will ensure that our content is reliable, honest and reliable. The loans reporters and editors concentrate on the things that consumers care about the most — the various types of loans available, the best rates, the best lenders, how to pay off debt and more . This means you’ll be able to feel secure when making a decision about your investment. Editorial integrity

Bankrate adheres to a strict code of conduct and rigorous policy, so you can rest assured that we’re putting your interests first. Our award-winning editors and reporters provide honest and trustworthy content to assist you in making the right financial choices. Key Principles We value your trust. Our goal is to offer readers accurate and unbiased information. We have established editorial standards to ensure this happens. Our editors and reporters rigorously fact-check editorial content to ensure the information you’re reading is accurate. We keep a barrier between advertisers as well as our editorial staff. Our editorial team doesn’t receive compensation directly through our sponsors. Editorial Independence Bankrate’s editorial staff writes in the name of YOU the reader. Our goal is to provide you the most relevant information to assist you in making intelligent financial decisions for your personal finances. We follow strict guidelines in order to make sure that the content we publish is not in any way influenced by advertising. Our editorial team is not paid any compensation directly from advertisers and our content is verified to guarantee its accuracy. Therefore whether you’re reading an article or reviewing it is safe to know that you’re getting credible and reliable information. How we earn money

You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four years. We strive to continuously provide consumers with the expert advice and tools required to be successful throughout their financial journey. Bankrate follows a strict , so you can trust that our content is honest and precise. Our award-winning editors and reporters produce honest and reliable content that will help you make the best financial decisions. The content created by our editorial team is objective, truthful, and not influenced through our sponsors. We’re transparent about the ways we’re capable of bringing high-quality content, competitive rates and helpful tools to our customers by describing how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for the promotion of sponsored goods and services or through you clicking certain links posted on our site. So, this compensation can influence the manner, place and in what order items appear within listing categories in the event that they are not permitted by law. We also offer mortgage, home equity and other home lending products. Other factors, like our own rules for our website and whether the product is offered in the area you reside in or is within your self-selected credit score range can also impact the way and place products are listed on this website. Although we try to offer the most diverse selection of products, Bankrate does not include information about each credit or financial product or service. When it is time to look into financing for a new car you’ll have a range of choices for details about promotional finance such as rebates. Rebates will give you a portion of the money on the purchase, which can reduce your total loan amount. But, dealers and manufacturers have different ways of structuring their incentives. Before signing buying a new car, ensure that the rebate will actually save you money. What is a rebate for a car? A car loan rebate is a incentive that offers you cash back to purchase the vehicle. This is an incentive for buyers to purchase the car in the specific scenario that the dealership is in charge of. But since rebates are offered by manufacturers, you’ll have to visit an authorized dealer that is working directly with the manufacturer in order to be eligible. You may also need to select a certain model, typically one of the top choices, to qualify for the rebate. What are auto rebates? Rebates are special offers that give buyers a few thousands dollars off the price of the vehicle. This doesn’t impact your cost of purchase — it is possible to negotiate with the dealer before talking about rebates, but it could reduce the amount you spend on a car. Rebates generally last only some time, and you’ll need meet specific requirements in order to qualify — for instance, you may have to select a certain type of car or apply for . Do you think an auto-rebate is a good idea? The auto loan rebates are something to look to see if they are offered. Rebates are used to reduce you down payments, your closing costs, or to the overall loan amount. In certain instances you could see your loan reduced by a few thousand dollars. However, you shouldn’t buy the vehicle solely due to the possibility of a rebate. In the majority of cases the variety of cars offered for rebates is limited and most rebates are restricted to newer vehicles and, often, the more expensive models of the new ones. The lure of a rebate may tempt you to buy an automobile that isn’t suited to your budget or needs. What are the steps to receive an auto-rebate? Unlike zero percent financing, rebates on cars don’t have any set requirements. If you select a model and trim that has a rebate, you qualify. Search manufacturer deals on new cars — rebates are typically advertised along with lease deals and other special interest rates. An auto rebate may be sent directly to you, however it can also be part of a down payment. This means you need to pay less in total and can save cash upfront and throughout the life of your car loan. In some states, you might be able to get rebates applied to cost of the purchase before taxes are added, however you’ll need to confirm your state’s rules for requesting the rebate. Auto rebate in contrast to. Low-interest financing Rebates and deals like a 0 percent APR deal, save you money differently. Rebates offer you a flat amount of money, which is usually put towards your down payment or closing costs. Low-interest financing however will reduce your ongoing interest and could lower your monthly installment. An auto rebate is likely to help you save the most on your car overall. Although you’ll have to pay an interest rate on the loan however, it’s the interest rate on a lower amount. A zero percent APR deal can save you cash over time, but the most important benefit is lower monthly payment. Creditworthy people could be able to have the best of both worlds — taking an incentive from the dealer and obtaining a lower percentage of interest through an . The bottom line The key to determining whether the rebate you receive is a good decision for your finances is how much it will be worth. Find rebates on car models you are contemplating and know how the rebate will be applied. You can use a car financing calculator to see the amount you can save over time with different financing options. Find out more

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The article was written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in helping readers to navigate the details of borrowing money to purchase a car. The article is edited by Chelsea Wing Edited by student loans editor Chelsea is with Bankrate since early 2020. She’s dedicated to helping students manage the steep cost of college and simplifying the complex world of student loans.

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