A car rebate is a cash incentive offered by automakers or dealers to encourage buyers to purchase a vehicle. It’s usually applied as a discount off the purchase price or given back to the buyer after the sale. Rebates can lower the total amount you finance, reduce your monthly payment, or shorten your loan term.
Most rebates are available to all buyers, but some are targeted, like programs for recent college graduates, military members, first responders, or loyal customers. Each automaker or dealer sets their own rules, so eligibility can vary by offer.
Usually, you’ll need to choose one or the other. Some manufacturers may allow both, but that’s rare. Our calculator assumes you’ll only have access to one option.
Yes. Rebates reduce the purchase price of the car, so sales tax is calculated on the full pre-rebate price. For example, if you buy a $30,000 car with a $2,000 rebate, the tax is still based on $30,000.
Rebates are usually applied at the time of purchase after you’ve agreed on a final price with the dealer. The rebate amount is then subtracted from the total you need to finance. In some cases, the rebate is issued as a check or direct payment after the sale, but most are handled upfront as part of the transaction.
Yes, you can usually combine a rebate with a trade-in. The rebate reduces the purchase price or amount financed, while the trade-in value is applied separately as credit toward the new car. Together, they can lower your overall cost and monthly payment.
When shopping for a new set of wheels, your first stop should be Scenic Community Credit Union. You’ll enjoy a lower rate, a straightforward loan application, and other benefits by financing your car with your credit union.
Determine your potential interest savings by increasing your auto loan payment. Our financial calculator provides a complete amortization schedule and highlights the total savings on your auto loan.
This calculator allows you to determine your monthly car loan payment. Enter your information to find out how varying loan terms or down payments influence your monthly payment.