Cash Rebate For Purchasing A New Car

In order to be eligible for a buyer for the special* cash rebate, he will have to fulfill two basic* conditions. One, he has to take a full loan for the car he intend to purchase. Secondly, the interest rate will be significantly higher with the cash rebate loan scheme.

If you think about it, this is a very good way of getting buyers to feel like they’re walking away with a good deal. When in reality, all they’re really getting is the money they’ll be servicing the bank interest in time.

Also, these loans based on the so called "Rule of 78". Buyer will have to cough up a significant amount of cash up front to settle the outstanding loan.

At the backend (behind-the-scene) of the deal, the Car Salesman or their company will be rewarded with a handsome commission by the bank. It is also rumored that most agents earn more through loan commissions than from selling cars.

It is such a profitable avenue that banks actually collaborate with the dealers to encourage buyers to take up bigger loans. If you have the cash and want to pay in full, dealers may not give you the discounted price and most likely forfeit the freebies they advertised.

Updated On: 11.12.27