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Low Rate vs. Rebate Calculator

The Low Rate vs. Rebate Calculator helps you determine which auto loan suits you best – a shorter-term, lower interest loan or a longer-term, higher interest loan on which you might also get a rebate on the vehicle. See how much your monthly payments will be; how much your total payments will be; how much total interest you will pay.*

  • Enter ballpark values by dragging the sliders left or right.
  • Enter exact numbers by clicking in the box and type your number (no commas).

Help

Purchase Price
The purchase price is the amount you agree to pay the dealer for the vehicle. This is the negotiated price, not necessarily the asking price.
Down Payment
This is the amount of money you agree to pay up-front for the vehicle. It reduces the amount of money you have to borrow.
Dealer Option

The dealer option typically is for a lower annual rate and a shorter loan term, which is offered in lieu of a rebate on the vehicle.

Loan Period
The loan period, also known as the loan term, is the length of your loan. Dealer loan periods are typically of shorter duration than those offered by financial institutions.
Annual Rate
The annual rate is the annual percentage rate you have to pay on the money you borrow. Typically, dealers offer lower annual rates than those offered by financial institutions. The lower rates usually are coupled with shorter loan periods.
Rebate 
The rebate is the amount of money you get back after you agree to purchase the vehicle. It is the manufacturer’s reduction on the price of a car as an incentive to buyers. You can apply the rebate to the purchase price to further reduce the amount of your loan. Typically, you cannot get a low dealer rate together with a rebate.
Rebate Option

The rebate option on an auto loan explores a higher annual rate and a longer term loan, coupled with a cash rebate from the dealer. Typically, the loan with the rebate option is acquired at a financial institution.

Loan Period
The loan period, also known as the loan term, is the length of your loan. Financial institution loan periods are typically of longer duration than those offered by dealers.
Annual Rate
The annual rate is the annual percentage rate you have to pay on the money you borrow. Typically, financial institutions offer higher annual rates than those offered by dealers. The higher rates usually are coupled with longer loan periods.
Rebate 
The rebate is the amount of money you get back after you agree to purchase the vehicle. It is the manufacturer’s reduction on the price of a car as an incentive to buyers. You can apply the rebate to the purchase price to further reduce the amount of your loan. Typically, dealers offer rebates as an incentive to buyers to pay cash for the vehicle.
Graph
The graph has a drop down with 3 choices – monthly payments, total interest paid, total payments. You can graphically compare the two options and see numerical readouts below the graph.
Table
The table simultaneously shows all 3 variables, so you can, at a glance, compare the numbers for the two loans.

*Calculators provided are estimation tools and do not necessarily reflect products, terms or rates that Home Federal Bank may offer. Please contact your Home Federal banker to verify results.

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