Investopedia

Continue to Site »

Rebate Option

Filed Under »
Dictionary Says

Definition of 'Rebate Option'

An offer to consumers for a cash discount on the purchase of a consumer good. The rebate option may also be called "cash back", though the consumer will not actually receive cash in hand - the "cash back" is used to directly reduce the purchase price. The rebate option is one of two common choices consumers can make when negotiating a price; the other choice is a reduced interest rate. Dealers offer these options as incentives to entice people to buy.

Investopedia Says

Investopedia explains 'Rebate Option'

Customers who are financing a product will need to decide between the two choices. While the rebate option makes the most sense for cash buyers, on a loan, the principal and interest both affect the monthly payment, so the buyer who is financing should consider what the monthly payment will be under both options, and what the total cost will be during the time he plans to own the vehicle.

Articles Of Interest

  1.

    Did You Buy A Lemon?

    Find out how to fix a sour deal on your car purchase.

  2. Used Car Shopping: How To Avoid A Lemon

    Being prepared before buying will save you thousands in the long run.

  3. 12 Car Insurance Cost-Cutters

    If car costs are dragging you down, find out how to free yourself from some of the extra weight.

  4. Wheels Of A Future Fortune

    Buy a quality car without driving your expenses through the roof.

  5. Top Tips For Cheaper, Better Car Insurance

    Accident, theft, vandalism - make sure your coverage will protect you when you need it most.

  6. Car Shopping: New Or Used?

    Don't get taken for a ride. Learn the pros and cons before the salesperson makes a pitch.

  7. Your Car: Fixer-Upper Or Scrap Metal?

    Sometimes buying a new car can be cheaper than shelling out for repairs.

  8. Mondelez Isn't As Good As Nestle, But Priced Like It Is

    Investors seem to bullish on Mondelez, given the relative performance at Kellogg and Nestle.

  9. How Spring Cleaning Can Make You Money

    Spring cleaning is a well-established tradition, but you can also make money by selling your unwanted goods.

  10. 5 Painless Ways To Save More Money

    Saving money can be a chore, but these tricks put money in your pocket with no effort at all.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center