My question is can I get rebates in cash. I'm trying to figure out if I get a rebate check and invest it how it will affect the bottom line after six years. My basic math skills are having a problem with this. I don't use any formulas. Just plain old arithmetic and there's lots of numbers involved.

 

you have to ask your specific dealership....

 

What is your intent here? Rebates are subtracted from purchase price. If you trade a vehicle worth more than the purchase price of the new vehicle, the dealer cuts you a check for the difference less any outstanding liens. If your trade/down payment is worth less than the new vehicle, you finance the difference. If you’re trying to outpace the interest on the loan with market investments, that can be accomplished by borrowing more than you need on the loan. Many financial institutions will allow you to borrow beyond market value of the vehicle by a certain percentage or dollar amount if your credit is sufficient. Alternatively, you can take the 0% APR, sell your trade privately, and invest the proceeds. You’d need to crunch some numbers to figure out which case works best. Keep in mind that there can be major swings in the market for the next 6-12 months.

For example:
- Second wave cripples economy further
- Vaccine is released
- Vaccine is delayed
- Vaccine proves ineffective during full scale trials
- Trump does stupid things (again)
- Trump tries to delay or sabotage the election

I would recommend against trying to game the interest rates vs ROI if you can’t afford to get caught up in things like the above.

 

All I want to know is can I get rebates in cash. What's the dealership got to do with it?

 

I guess that I asked a pretty stupid question since I hadn't thought about if you pay cash of course you'll get a check for the rebate. Still don't ever remember a dealer ever asking if I wanted the rebate in cash or applied to the down payment.

 

Even if I could assume investment returns there are so many math problems involved that I get lost trying to come up with a hard answer.

 

You need to contact your dealership, but if I were a bank, this would reek of fraud potential and I wouldn't allow it. Someone can walk out with a new vehicle and a check for several thousand dollars? No way.

 

Basically your question is how much will a Bank loan me on a F150; and it depends on credit score and payment history. Many older borrowers who have good payment and employment history can borrow 130% of MSRP ++, almost everyone qualifies for 110% of MSRP ++. If with rebate and discount you are $12k off you can get that in cash.

 

Instead of the dealer applying to the down payment as most people do, you can opt to get a check for the rebates directly from Ford I think.

 

Dealerships cannot convert rebates to cash. Rebates can only be applied to purchase price, so think of them like "coupons". The question you need to ask yourself, is it better to pay all cash upfront for a vehicle or finance @ 0% and invest the remaining cash in an ETF/Stocks/etc for growth. That's only for you to decide based upon your financial situation. *Not a financial advisor.