§ Calculator · Vehicle
Auto rebate vs low-rate financing
What this is
Dealer says: $3,500 cash back OR 0.99% financing. Which one wins?
The promo rate is usually mutually exclusive with the rebate, pick one. With a big rebate but high rate, you pay less principal but more interest. With promo rate but no rebate, full principal at near-zero interest.
With rebate · monthly
$695
With rebate · interest
$7,419
With rebate · total cost
$41,719
Promo · monthly
$646
Promo · interest
$959
Promo · total cost
$38,759
Better deal: Take the promo rate
Total cost: rebate vs promo
Always run BOTH scenarios. The “better” deal depends on principal size, term length, and your alternative use of cash. Dealers price these to be roughly equivalent, anything else is a deal.
Disclaimer
Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.