0% APR vs. cash rebate calculator

Either offer may cost less, depending on the rebate amount, standard APR, loan term, vehicle price, fees, taxes, and your eligibility. Compare the total amount paid under both written offers, not just the monthly payment. This calculator models 0% financing against a standard-rate loan with a rebate applied after tax, so verify the actual tax treatment and offer rules.

Compare the same vehicle and term using the offer’s actual APR and eligibility. For illustration, on a $30,000 balance over 60 months, 0% financing costs $30,000 before fees. A $3,000 rebate with a 7% loan on $27,000 would total about $32,077.94 in payments, so 0% costs less in that example. Real taxes and offer terms may change the result.

If you qualify and borrow the same principal for the same term, 0% APR avoids the scheduled interest that a positive-rate loan would charge. For example, $30,000 over 60 months at 7% APR produces about $5,642 in modeled interest, while the same balance at 0% has none. A rebate or different vehicle price can change which promotion costs less overall.

Sometimes a promotion permits combining offers, but many programs present them as alternatives. Eligibility, vehicle, purchase date, lender, and other conditions can differ. Ask the dealer for the exact written terms for both choices, including the out-the-door price, and do not assume an advertised rebate and special APR can be stacked unless the offer documents say so.

A 0% offer means no interest under the stated loan terms, but the vehicle price, fees, taxes, required down payment, and eligibility still matter. Some promotions may replace a rebate or apply only to certain buyers or models. Request the full written price and financing details, then compare them with other offers before signing.

Ask for written versions of each offer with the selling price, incentives, APR, loan term, down payment, fees, eligibility conditions, and total amount paid. Compare the same vehicle and loan period, and check whether promotions can be combined. The calculator compares the entered 0% and rebate scenarios; use the dealer comparison calculator for other offers.