Low Rate or Cash Back?

Vehicle manufacturers or dealers will often offer incentives to purchase a particular vehicle in the form of a low rate loan or a cash back incentive. While a low rate loan sounds attractive, you might be better off taking the cash back, using it to add to your down payment and reducing the loan amount for the vehicle. Evaluate which option is best. A lower loan amount will mean a lower monthly payment, and you might find that the interest savings you will gain by the low rate loan is less than the cash back amount.