Should I go for low financing or a discounted price on a Honda Accord?

I'm buying a Honda Accord from a dealership. I can choose either 0.9% financing for 60 months or a discounted price by $2,500. If I choose the discount, my interest rate from my credit union will be 3.25%. The normal price of the Accord is $26,970. Should I choose low financing rates or a discounted price?

Answer
“Both low financing rates and discounted prices have their perks. Since you’ll be financing the vehicle, you’ll need to do some math.
If you get the financing, you’ll pay $460 a month and $621 in interest.
If you go with the discount, you’ll pay $24,470 for the car. Your monthly payment will be $442 and you’ll pay $2,075 in interest.
With the discount, you save just over $1,000, making it the more affordable option.
Just make sure that you also budget for car insurance, so you aren’t shocked by the price. Lenders require full coverage for financed vehicles in order to protect their asset.
Full coverage can be pricey, especially if you use the lender’s insurance, but you can save money by comparing rates. Using a smart comparison tool like Jerry makes the process easy. Jerry does all the hard work for you, pulling quotes from the top 50 companies and delivering the best deals to your phone in minutes.”
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Eric Schad
Answered on Aug 10, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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