What's the deal with "cash back" when buying a car?
What does "cash back" mean, and why don't they just take that amount off the price of the car?
Its because most people take a loan to buy their car and so the car companies can charge you interest on the overall loan.
Because you are getting cash back, it seems like it is free money. However most people will still pay interest on the overall amount of the loan (and that is where the car companies that make most of the money).
