How Does Cash Back Work?
A cashback loan is an auto loan that covers the cost of financing a vehicle and it also provides the borrower with cash to use how they see fit.
There are many benefits of a cashback auto loan. You could pay off existing loans or credit cards that have high interest rates, you could fund home renovations, or purchase bit ticket items you’ve had your eye on. A cash back loan from an auto lender might give you access to lower interest rates than a bank could give you for a personal loan. It can also simplify things for you by creating a single monthly payment for a car and the loan.
Sometimes borrowers seek to refinance an existing auto loan and might pursue the cashback option. It could be a good time to refinance if interest rates are lower, or if your credit has improved. For non-home owners, cash back auto loans are a great way to borrow up to $10000.
There are some things to consider before choosing a cash back auto loan. It will of course increase your total borrowing amount, which will be repaid through higher monthly payments or a longer loan term. Be sure to fully understand the new terms of your loan agreement and that the savings and financial benefit to you outweigh the costs.
If you have any questions about if a cashback auto loan is right for you and your needs, contact us at Abbotsford Volkswagen and we would love to answer any questions you may have and help you decide what is best for you!