Discount vs. cashback vs. lower interest rates: Which incentive is right for you when buying a new car?

Discount vs. cashback vs. lower interest rates: Which incentive is right for you when buying a new car?

Dubai: When comparing incentives that are offered when buying a new car, it's important to consider the financial factors and do the math beforehand, in order to make the right decision that is most cost-effective for you. A buyer looking to purchase a new car is often bombarded by adverts promising big savings. The most common of these car-buying incentives are in the form of discounts, cash rebates or cashback offers, and a lower interest rate applied to your car loans. With cash rebate or cashback offers, the car manufacturer gives you a one-time rebate usually deducted from your car's purchase price, after you pay the entire amount. Rebate amounts vary, but they usually range from Dh1, 000 to Dh3, 000. When you are offered a lower interest rate, what this means is that the dealer offers an interest rate on a loan that is lower than the normal rates offered. Car manufacturers usually allow only one deal per purchase. Sometimes you get to choose which offer to take. But keep in mind when evaluating the low interest rate offer that only those with a strong credit history qualify for the lowest published rates. Consider the specifics to see whether