§ 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.