Advantage of an instant manufacturers rebate

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Many car dealerships advertise that they will finance your purchase at low interest rate or you can take advantage of an instant manufacturers rebate. Assume you are in this dilemma, you found the perfect car for $20,000. You have a plan to pay off the debt in 5 years making monthly payments. You can take advantage of the dealers offer and finance the car at 1.9% or you can take advantage of the $2,500 rebate and finance the car at the going interest rate of 4.5%. Which is the better offer and why?

Reference no: EM131289805

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