I won't get into a leasing discussion either. I used to think the same way as you do, but they can be financially beneficial under certain circumstances.
Anyway, 0% interest vs. Rebate: Start with the facts. My credit union offers 4.99% currently. You cna probably get something similar.
$35k loan for 5 yr @ 0% = $583.33
$31k loan for 5 yr @ 4.99% = $584.87
Well, you pay taxes on the rebate, so a few bucks more for the latter.
Not much difference in payment, right? Keep im mind the loan balance during your 5 years of payments. It's always lower with the rebate. The delta between the vehicle's value and your payoff will be better. You've covered yourself with GAP insurance in the event of insurance totaling the vehicle from an accident. You could have probably could have avoided GAP insurance with the rebate saving a couple hundred. However, you need to keep the vehicle for the full 5 years to realize the savings of the 0% interest. If you decide to sell/trade the vehicle after 3 years, you not only won't get the whole 5yr of savings, but also have that higher loan balance to pay off. Most people claim they will keep the car for a longer period than the loan term, but lives change. You never know what may happen in the next 5 years that may change that desicion.
That's about it. It isn't too importnant for most people, but it's still a better choice IMHO.
