[Adam in CO]

Car financing vs. rebate

You're at an auto dealership, about to sign for the $30,000 SUV of your dreams. You saw it advertised with a $2,000 rebate. Now the salesperson is dangling 0 percent financing instead. Deal?

DEAL IF...you plan to keep the car for a while, generally at least four years. Only at that point will the interest savings top the amount of money you could have gotten back in the rebate, says Jesse Toprak of Edmunds.com.

In this instance, with 0 percent interest over five years, you'll pay only the $30,000. The same car with the rebate, no down payment and 7 percent financing over five years would cost $33,266. (To weigh other offers, check the Decision Calculator: Low APR vs. Cash Back at Edmunds.com.)

Manufacturers and dealers usually extend these incentives when they're having a hard time unloading inventory; with SUVs right now, fuel prices have made the vehicles unfashionable. So be aware that you may give back some of your savings in the form of a lower resale value down the road.