Rebate or low APR?
Take a $32,700.00 car with $5,000.00 down over 60 months (Texas, with the car registered in Harris County), where the maker offers $2,000.00 cash back or 1.90% financing, not both. Taking the rebate costs no more in all than the low APR as long as the loan you finance it with is at 4.86% or less. Above that, the low APR costs less.
comptroller.texas.gov · checked Oct 2, 2026
By Mr. Voltage · Data checked Oct 2, 2026 · Page changed Oct 30, 2026
Where will you register the car?
Harris County, Texas
Example quotes. Pick your place and type yours. Example: three quotes on one car in Harris County, Texas. Pick your own place and type your quotes.
Your deals at a glance
| Deal | Payment | All-in |
|---|---|---|
| $515.04a month | $35,902.31Lowest | |
| $527.31a month | $36,638.89+$736.58 more than Deal A | |
| $553.80a month | $38,227.99+$2,325.68 more than Deal A |
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Your numbers stay in this browser.
$515.04 a month · 60 payments
All-in $35,902.31Lowest
$527.31 a month · 60 payments
All-in $36,638.89
$553.80 a month · 60 payments
All-in $38,227.99
Out-the-door $35,034.75
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Out-the-door $35,159.75
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Out-the-door $35,034.75
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
New · 2026 · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Model year
A new car is the current or next model year
Fuel
Gas car. Electric and hybrid cars pay more in some states
Doc fee stated on its own line
Buyer’s orders list the doc fee on its own line, which is what keeps it untaxed in Texas
New · 2026 · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Model year
A new car is the current or next model year
Fuel
Gas car. Electric and hybrid cars pay more in some states
Doc fee stated on its own line
Buyer’s orders list the doc fee on its own line, which is what keeps it untaxed in Texas
New · 2026 · Gas · change
New or used
The sheet starts with a new car; each deal sets its own
Model year
A new car is the current or next model year
Fuel
Gas car. Electric and hybrid cars pay more in some states
Doc fee stated on its own line
Buyer’s orders list the doc fee on its own line, which is what keeps it untaxed in Texas
$225.00: what Texas presumes reasonable.
Texas calls it a documentary fee.
It must be the same whether you pay cash or finance.
law.cornell.edu · checked Oct 2, 2026
The notice Texas requires with this fee
A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS RELATING TO THE SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT AGREED TO BY THE PARTIES. THIS NOTICE IS REQUIRED BY LAW.
$225.00: what Texas presumes reasonable.
Texas calls it a documentary fee.
It must be the same whether you pay cash or finance.
law.cornell.edu · checked Oct 2, 2026
The notice Texas requires with this fee
A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS RELATING TO THE SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT AGREED TO BY THE PARTIES. THIS NOTICE IS REQUIRED BY LAW.
$225.00: what Texas presumes reasonable.
Texas calls it a documentary fee.
It must be the same whether you pay cash or finance.
law.cornell.edu · checked Oct 2, 2026
The notice Texas requires with this fee
A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS RELATING TO THE SALE. A DOCUMENTARY FEE MAY NOT EXCEED A REASONABLE AMOUNT AGREED TO BY THE PARTIES. THIS NOTICE IS REQUIRED BY LAW.
Maker’s rebate (taken off the price)
Rebates applied at signing
Most rebates are taken off at signing.
Maker’s rebate (taken off the price)
Rebates applied at signing
Most rebates are taken off at signing.
Your $5,000.00 down covers the $2,334.75 in tax, title, license and the doc fee first; $2,665.25 goes toward the price.
Your $5,000.00 down covers the $2,459.75 in tax, title, license and the doc fee first; $2,540.25 goes toward the price.
Your $5,000.00 down covers the $2,334.75 in tax, title, license and the doc fee first; $2,665.25 goes toward the price.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
Illustrative rate, not a quote. Your APR depends on your credit, the term, the vehicle and the lender.
60 payments, last $514.95
60 payments, last $527.60
60 payments, last $553.79
- Out-the-door total$35,034.75
- Rebates−$2,000.00
- Cash down−$5,000.00
Amount financed$28,034.75
- Out-the-door total$35,159.75
- Cash down−$5,000.00
Amount financed$30,159.75
- Out-the-door total$35,034.75
- Rebates−$2,000.00
- Cash down−$5,000.00
Amount financed$28,034.75
cash down plus every payment
cash down plus every payment
+$736.58 more all-in than Deal A
cash down plus every payment
+$2,325.68 more all-in than Deal A
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
Estimate. Your dealer’s buyer’s order and your lender’s disclosures are the numbers that count. Check them against this.
3 charges this total leaves out
3 charges this total leaves out
3 charges this total leaves out
The rate at which they cost the same
The rebate lowers what you finance. The low APR lowers the interest on a larger loan. Which costs less depends on the rate you can get for the rebate deal, so the page works the rebate deal at every rate and finds the highest one at which its total paid, cash down and every payment included, is still no more than the low APR's.
Take a $32,700.00 car with $5,000.00 down over 60 months (Texas, with the car registered in Harris County), where the maker offers $2,000.00 cash back or 1.90% financing, not both. Taking the rebate costs no more in all than the low APR as long as the loan you finance it with is at 4.86% or less. Above that, the low APR costs less. On the low APR the deal comes to $527.31 a month, $1,479.14 of interest and $36,638.89 paid in all. With the rebate at 3.90% from your own lender it comes to $515.04 a month, $2,867.56 of interest and $35,902.31 paid in all: $736.58 less in all. With the rebate at the dealer's standard 6.90% it comes to $553.80 a month, $5,193.24 of interest and $38,227.99 paid in all: $1,589.10 more than the low APR.
Change the rate on deal A above to one you have in writing from your own lender, and the all-in column shows the same comparison on your numbers.
comptroller.texas.gov · checked Oct 2, 2026
The rebate and the sales tax
In Texas, a maker’s rebate lowers the amount taxed. So taking the rebate also takes $125.00 off the tax in the examples. Other states differ: some tax the price before the rebate, some after. The calculator applies the rule of the state you pick, with its source and the date it was checked, and the state sales tax page lists each state's rule.
comptroller.texas.gov · checked Oct 2, 2026
When the rebate is paid after you sign
Some rebates are not taken off at signing: the maker pays them to you later. Then the full price is financed, you pay interest on the rebate's share of the loan until it arrives, and the money comes back after. In the same example, that lowers the rate at which the rebate deal and the low APR cost the same from 4.86% to 4.55%. The sheet has a switch for it on each deal's rebate line.
Worked examples
Each line below is worked by the same engine as the calculator, on the day this page was built (Nov 11, 2026).
Rebate, your own lender’s rate
A new car at $32,700.00, with a maker’s rebate of $2,000.00 applied at signing, $5,000.00 down, financed at 3.90% over 60 months, bought from a dealer in Texas, with the car registered in Harris County. It is deal A in the calculator above.
| Line | Amount |
|---|---|
| Price | $32,700.00 |
| Taxable amount statutes.capitol.texas.gov · checked Oct 2, 2026 | $30,700.00 |
| Motor vehicle sales tax statutes.capitol.texas.gov · checked Oct 2, 2026 | $1,918.75 |
| Doc fee law.cornell.edu · checked Oct 2, 2026 | $225.00 |
| Title application fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $33.00 |
| Registration fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $101.50 |
| TexasSure insurance verification fee txdmv.gov · checked Oct 2, 2026 | $2.00 |
| County road and bridge and child safety fees txdmv.gov · checked Oct 2, 2026 | $23.00 |
| Inspection program replacement fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $16.75 |
| Processing and handling fee law.cornell.edu · checked Oct 2, 2026 | $4.75 |
| Metal license plate fee txdmv.gov · checked Oct 2, 2026 | $10.00 |
| Out-the-door price | $35,034.75 |
| Cash down | $5,000.00 |
| Maker’s rebate | $2,000.00 |
| Amount financed | $28,034.75 |
| Monthly payment | $515.04 |
| Interest over the loan | $2,867.56 |
| Total paid, interest included | $35,902.31 |
Maker’s low APR, no rebate
A new car at $32,700.00, $5,000.00 down, financed at 1.90% over 60 months, bought from a dealer in Texas, with the car registered in Harris County. It is deal B in the calculator above.
| Line | Amount |
|---|---|
| Price | $32,700.00 |
| Taxable amount statutes.capitol.texas.gov · checked Oct 2, 2026 | $32,700.00 |
| Motor vehicle sales tax statutes.capitol.texas.gov · checked Oct 2, 2026 | $2,043.75 |
| Doc fee law.cornell.edu · checked Oct 2, 2026 | $225.00 |
| Title application fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $33.00 |
| Registration fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $101.50 |
| TexasSure insurance verification fee txdmv.gov · checked Oct 2, 2026 | $2.00 |
| County road and bridge and child safety fees txdmv.gov · checked Oct 2, 2026 | $23.00 |
| Inspection program replacement fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $16.75 |
| Processing and handling fee law.cornell.edu · checked Oct 2, 2026 | $4.75 |
| Metal license plate fee txdmv.gov · checked Oct 2, 2026 | $10.00 |
| Out-the-door price | $35,159.75 |
| Cash down | $5,000.00 |
| Amount financed | $30,159.75 |
| Monthly payment | $527.31 |
| Interest over the loan | $1,479.14 |
| Total paid, interest included | $36,638.89 |
Rebate, the dealer’s standard rate
A new car at $32,700.00, with a maker’s rebate of $2,000.00 applied at signing, $5,000.00 down, financed at 6.90% over 60 months, bought from a dealer in Texas, with the car registered in Harris County. It is deal C in the calculator above.
| Line | Amount |
|---|---|
| Price | $32,700.00 |
| Taxable amount statutes.capitol.texas.gov · checked Oct 2, 2026 | $30,700.00 |
| Motor vehicle sales tax statutes.capitol.texas.gov · checked Oct 2, 2026 | $1,918.75 |
| Doc fee law.cornell.edu · checked Oct 2, 2026 | $225.00 |
| Title application fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $33.00 |
| Registration fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $101.50 |
| TexasSure insurance verification fee txdmv.gov · checked Oct 2, 2026 | $2.00 |
| County road and bridge and child safety fees txdmv.gov · checked Oct 2, 2026 | $23.00 |
| Inspection program replacement fee statutes.capitol.texas.gov · checked Oct 2, 2026 | $16.75 |
| Processing and handling fee law.cornell.edu · checked Oct 2, 2026 | $4.75 |
| Metal license plate fee txdmv.gov · checked Oct 2, 2026 | $10.00 |
| Out-the-door price | $35,034.75 |
| Cash down | $5,000.00 |
| Maker’s rebate | $2,000.00 |
| Amount financed | $28,034.75 |
| Monthly payment | $553.80 |
| Interest over the loan | $5,193.24 |
| Total paid, interest included | $38,227.99 |
Questions people ask
Is it better to take the rebate or the low APR?
It depends on the rate you can get for the rebate deal, and the page does not pick one. Take a $32,700.00 car with $5,000.00 down over 60 months (Texas, with the car registered in Harris County), where the maker offers $2,000.00 cash back or 1.90% financing, not both. Taking the rebate costs no more in all than the low APR as long as the loan you finance it with is at 4.86% or less. Above that, the low APR costs less. Put the two on the same car in the calculator above, with your own lender's rate on the rebate deal, and the all-in column shows which costs less on your numbers.
Is 0% APR a trap?
Not in itself: a low or zero rate from the maker is real money off the interest. What it can cost you is what you give up for it. It is often offered instead of a cash rebate, and often only on some models and terms and for some buyers, as the maker's offer says. In the example, taking 1.90% means giving up $2,000.00 cash back, and the two cost the same when the rebate is financed at 4.86%. The low rate also only covers the loan: add-ons and fees on the order cost what they cost either way.
At what interest rate does the rebate come out ahead?
At any rate up to the break-even, where the two cost the same in all. Take a $32,700.00 car with $5,000.00 down over 60 months (Texas, with the car registered in Harris County), where the maker offers $2,000.00 cash back or 1.90% financing, not both. The break-even is 4.86%: at or below it the rebate deal costs no more; above it the low APR costs less. The break-even moves with the price, the rebate, the low APR, the term and the state's tax, so it is worked for the deals you type, not given as a rule of thumb.
comptroller.texas.gov · checked Oct 2, 2026
Does a rebate lower the sales tax on a car?
It depends on the state. In Texas, a maker’s rebate lowers the amount taxed. So taking the rebate also takes $125.00 off the tax in the examples. The state sales tax page lists each state's rule, with its source and the date it was checked.
comptroller.texas.gov · checked Oct 2, 2026
What changes if the rebate is paid after I sign?
The rebate is not taken off what you finance, so the loan is larger, you pay interest on it, and the rebate comes back to you later. That makes the rebate worth a little less against a low APR. In the example the break-even falls from 4.86% to 4.55%. Ask whether the rebate is applied at signing; the buyer's order shows it as a credit if it is.