Whats a better deal? More dealer incentive or better financing?

Question

I am going to buy a car and the dealer is offering 6K off sticker, and probably get normal financing at 5.5% or 6% for 60. Or I can get only 2500 off sticker and take 1.9% for 60.

The car sticker is 31K. Any Thoughts?????

I believe the dealer incentive is better but I am having trouble crunching numbers at the moment........

Answer 1

Better to check with many dealer's in your area for the price, and work with them E mail, have them work a deal with you. Took me over 3 months to find the best deal on my last car, but saved 1000's of dollars and got the color and acc. I wanted on the car. Get names who you are talking to, and have these people work against each other for the deal . Dont be in a rush, and take your time, and use email vs phone calls, And ask to see the invoice of car, so you can see they have it, and not just trying to get you in and try to switch you to another vehicle, and give you another sales person to smooth talk you.

Answer 2

Just run your numbers through a auto loan calculator that shows you the total cost of the loan. Here's one that should do it:

http://www.autoloancalculatoronline.com

BTW, the incentives are coming from the car manufacturer and cost the dealer nothing,  so make sure the dealer kicks in with a discount as well.

Answer 3

Maybe go discuss it with a loan officer at your bank/financial institution.

You don't necessarily have to finance it through them - but they can give you a better rundown on the numbers (and most importantly, they are a relatively uninterested 3rd party).

Although depending on your credit rating, and standing with the bank, you might be able to get a better deal with them.

Good luck!