The Rate Or The Rebate:
What Can A Car Buyer Do?

It's not easy to choose the right auto financing. With so many options around, it's difficult to understand how one program compares to another. Some people are even skeptical of programs that seem to offer great savings, assuming that if you save on one thing you'll pay more for something else.

At Dollar Bank, we have a very simple approach to vehicle financing. We provide the best rate we possibly can without the fuss and the gimmicks. But with all of the rebate programs out there, you may feel as though you have to choose between a great rate or a great rebate. You can't have both, can you?

The following can help you begin to understand which choice is best for you. The options are to take the great dealer finance rate and forego the rebate (Dealer Rebate Option), or take the rebate and finance your loan with Dollar Bank (Bank Rate Option).

	Dealer Rate Option	Bank Rate Option
Loan Rate	4.99% APR	8.49%APR*
Term (months)	36 months	36 months
Rebate	$ .00	$ 1,000.00
Amount Financed	$ 10,000.00	$ 9,000.00
Monthly Payment	$ 299.66	$ 284.06
Sum of Payments	$10,787.76	$10,226.16
Savings	$ 0.00	$ 561.60

Based on the example above, a customer can save over $561.60 by taking the dealer rebate and financing the loan through the bank. Of course, every rate and rebate is different. You will generally find that you will save more with a bank finance program when the rebate is larger and the difference between the dealer and the bank is smaller.

Which program is best for you? How much can you save? Now that you are familiar with our example, you can determine your best option. Our Dollar Bank Representatives will be happy to assist you if you have any questions.

	Dealer Rate Option	Bank Rate Option
Loan Rate
Term (months)
Rebate
Amount Financed
Monthly Payment
Sum of Payments
Savings

*Rate and offer subject to change without notice. 8.49% APR is an example rate only and is for Dollar Bank fixed rate auto loan customers selecting automatic payment from a Dollar Bank checking account and is subject to increase if automatic payment is cancelled. This rate results in 36 monthly payments of $31.56 per $1,000 borrowed, and is for new cars or new cars purchased less than six months ago.

To try our loan calculators, click here.

The information presented in this publication is general in nature; it is not our intention to provide specific advice to individuals or a comprehensive discussion of the subject matter. We suggest that you consult with your financial or tax advisor, accountant or attorney to obtain specific advice or comprehensive information.