| |
Cash rebate vs. low rate?
If you are financing a car and think the manufacturer's low rate
might be better in the long run than taking the cash rebate, think
again. Before signing up for anyone's offer of super-low financing,
you might want to check out the math using the tables below. In
most cases, taking the cash will be the better deal.
|
| RATE |
|
REBATE |
PRICE OF VEHICLE |
$20,000.00 |
 |
PRICE OF VEHICLE |
$20,000.00 |
REBATE |
|
|
REBATE |
$3,000.00 |
MANUFACTURER RATE |
2.9% |
|
HCFCU RATE |
6.5% |
LOAN AMOUNT |
$20,000.00 |
|
LOAN AMOUNT |
$17,000.00 |
LOAN TERM |
36 |
|
LOAN TERM |
60 |
MONTHLY PMT |
$580.74 |
|
MONTHLY PMT |
$332.62 |
TOTAL OF PMTS |
$20,906.64 |
|
TOTAL OF PMTS |
$19,957.20 |
| |
|
|
MEMBER SAVINGS |
$949.44 |
Compare the two ways of financing side-by-side. You'll see that even at
a higher rate, an HCFCU loan, along with taking the rebate, makes the
monthly payment more affordable. It will save you a considerable amount
of money over the life of the loan.
|
| RATE |
|
REBATE |
PRICE OF VEHICLE |
$20,000.00 |
|
PRICE OF VEHICLE |
$20,000.00 |
REBATE |
|
|
REBATE |
$3,000.00 |
MANUFACTURER RATE |
1.9% |
|
HCFCU RATE |
6.5% |
LOAN AMOUNT |
$20,000.00 |
|
LOAN AMOUNT |
$17,000.00 |
LOAN TERM |
60 |
|
LOAN TERM |
60 |
MONTHLY PMT |
$349.68 |
|
MONTHLY PMT |
$332.62 |
TOTAL OF PMTS |
$20,980.80 |
|
TOTAL OF PMTS |
$19,957.20 |
| |
|
|
MEMBER SAVINGS |
$1,023.60 |
A closer look at this comparison reveals
that even at the same term, an HCFCU loan at a higher rate, with
a rebate, offers a lower monthly payment. The long-term savings
are substantial. |
| RATE |
|
REBATE |
PRICE OF VEHICLE |
$30,000.00 |
|
PRICE OF VEHICLE |
$30,000.00 |
REBATE |
|
|
REBATE |
$3,000.00 |
MANUFACTURER RATE |
4.9% |
|
HCFCU RATE |
6.75% |
LOAN AMOUNT |
$30,000.00 |
|
LOAN AMOUNT |
$27,000.00 |
LOAN TERM |
60 |
|
LOAN TERM |
72 |
MONTHLY PMT |
$564.76 |
|
MONTHLY PMT |
$457.09 |
TOTAL OF PMTS |
$33,885.60 |
|
TOTAL OF PMTS |
$32,910.48 |
| |
|
|
MEMBER SAVINGS |
$1,975.12 |
Compare the two closely to see how HCFCU's loan, even with the higher rate
and rebate taken, can offer you more affordable monthly payments in
addition to impressive, long-term savings. The result is greater overall
savings. Taking our loan plus the rebate makes much better money-saving
sense.
|
| RATE |
|
REBATE |
PRICE OF VEHICLE |
$30,000.00 |
|
PRICE OF VEHICLE |
$30,000.00 |
REBATE |
|
|
REBATE |
$3,000.00 |
MANUFACTURER RATE |
4.9% |
|
HCFCU RATE |
6.5% |
LOAN AMOUNT |
$30,000.00 |
|
LOAN AMOUNT |
$27,000.00 |
LOAN TERM |
60 |
|
LOAN TERM |
84 |
MONTHLY PMT |
$564.76 |
|
MONTHLY PMT |
$400.93 |
TOTAL OF PMTS |
$33,885.60 |
|
TOTAL OF PMTS |
$33,678.12 |
| |
|
|
MEMBER SAVINGS |
$207.48 |
This example illustrates the benefits
of stretching your payments out with a very long-term (seven-year)
auto loan. Which means you could get the car of your dreams at
an affordable price-without falling into the trap of leasing. It's
totally up to you. If your credit meets our guidelines, we will
provide you with an even lower loan rate and pass the additional
savings on to you. |
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