Is it better to take 0% financing or Cash Back when buying a new car?

Depends if the car is new or not? If its new it will be subsadised by the manafacturer so you can take either of the two and still have 8 to 10% margin to play with at the dealership..See what interest your bank will pay you on the cash back because if the car is new base rates that the dealership can achieve from thier lenders is as low as 2% flat rate in some cases.. so for example if you can get 4.5% for your savings you will be 2.5% up..the sum for working out the interest payable on car finance (not a bank loan) is dependent on the flat rate..for example if you get a flat rate of 2% and are borrowing 鎷?000 over 2 years the total payable will be 4% on the amounr borrowed as its 2% flat rate per year..鎷?000 x 4% + amount = 鎷?080 divide by the term (24 mths) = payment of 鎷?6.66.. Work out what you will be paying back and that will show you the saving 0% will give then ask for a discount as there margin is usually 8 to 10% add that to your cashback and choose the greater amount.. example:

CASHBACK DEAL

Car 鎷?0000

Discount 5% = 鎷?00

Casback 鎷?000

Saving = 鎷?500

0% DEAL

Car 鎷?0000

NORMAL FINANCE @ 3% FLAT RATE OVER 4 YEARS

Intrest Cost 鎷?200 payments @ 鎷?33.33

0% = 鎷?08.33 Per Month saving 鎷?200

5% Discount from dealership 鎷?00

Total saving on 0% is 鎷?700

So in this case 0% is the better

I know its long winded but i spent 18 years working for dealerships and watching people get conned.. i now run my own used car business and pride my self in being up front.. Hope This HelpsYou

Good Luck

Is it better to take 0% financing or Cash Back when buying a new car?

It depends what the prevailing (and future) interest rates are going to be in your country.

From that you can work out how much the interest or the cash back will be worth, and compare them directly.

Is it better to take 0% financing or Cash Back when buying a new car?

i think either way is good. 0% financing will allow you to accumulate no interest for an amount of time and cash back will allow you to take that cash back and subtract it from what the car costs. that is normally what the dealers do.

Is it better to take 0% financing or Cash Back when buying a new car?

Zero percent!! Why pay high interest or any interest at all?? You%26#039;ll save more than getting cash back.

Is it better to take 0% financing or Cash Back when buying a new car?

CASH BACK

Is it better to take 0% financing or Cash Back when buying a new car?

If you read the fine print and it is truly 0% for the life of the contract then yes, it would save you far beyond what is offered as cash back. However, this is probably not the case. The 0% is most likely time limited and will probably equal to the cash back offer. So read the fine print and ask the dealer exactly how much the 0% will save you (he know exactly what it is) then ask yourself whether you want to actually see the money or not.