Cash Back Car Loans – Any vehicle you are able to purchase with $0 down that allows you to receive some extra cash back at the time of purchase. This extra cash is built into the financed price and offered as an incentive.
Cash Back Example:
- $10,000 Vehicle Purchase Price
- $1,000 Cash Back
- $11,000 Total Financed
This calculation is simplified and doesn’t show any tax implications or how it affects the monthly payments. From this you should be able to see how getting cash back on an auto loan works.
Auto Loan with Cash Back – Reasons to Get One
Maybe you need some extra cash for around holidays? Maybe you have some credit cards that you have been carrying a balance month over month. Whenever you are in a situation where you are paying an interest rate that is higher than your car loan interest rate it may be a good idea to pay off that debt with the money you get as cash back.