Loan Rebate vs. Dealer Financing

The UCU Advantage: Take the rebate over dealer financing

Has the dealer’s 0% loan rate financing specials clinched your decision to buy a new car? Can you get a rebate instead (usually dealers will offer low rates or financing — not both)? In most cases, it might be better for you to take the dealer’s rebate and then opt for UCU low-rate financing.

Rebates usually help reduce the overall cost of a car (the total of purchase price plus loan interest) because the loan interest will be calculated on a lower loan balance. If it’s close, taking the rebate can reduce the overall loan on the car so you owe less.

The following examples show potential savings by taking a $2,000 rebate and UCU’s loan versus no rebate and a special dealer loan. Sample purchase price: $22,000.

Apply for your loan online or call during business hours (7a-5p, M-F and 9a- 1:30p, Saturday) at 310.477.6628 x 1


UCU Loan @ 1.99% APR
60-mo. term
Dealer Loan @ 0.99% APR
60-mo. term
Your Advantage
Purchase price $22,000 $22,000
Minus Dealer Rebate $  2,000 $           0 Apply rebate to your purchase price for a lower loan amount!
Loan Amount $20,000 $22,000 Lesser loan amount to repay at UCU!
Monthly Payment $      350 $     376 Pay $26 less per month at UCU!
Total Loan Repayment $21,029 $22,559 Pay $1,530 less cost overall at UCU!

Annual Percentage Rate. Rates are subject to change without notice. Rates listed are used for example of repayment. Consult UCU for current rate information. Disclaimer: Rates are subject to change without notice. Loan issued subject to credit review. Contact UCU for complete details.