Do you want to find out the best alternative between the manufacturer rebate and low interest dealer financing? ACalculator is proficient in calculating and then comparing different auto financing options to let you choose the cost-effective one. The low interest financing reduces the amount of your monthly payment, while, the manufacturer rebate reduces the overall balance through cash discount at the time of purchase. Anyways, most of the auto dealers allow you to avail only one of these facilities at a time. The end result of this calculation will be the amount you could save by choosing the right option.
Total purchase price (before tax)
The before tax purchase price of the automobile. The purchase price will include destination charges and other costs as well.
Term in months
Term length for the auto loan.
The amount of money paid as down payment. Try to put more money as down payment to reduce the required amount of financing.
The trade-in amount you can get for trading your old car as the payment of current automobile purchase. Depending on your state, this amount can be a tax-deductible item for the auto purchase.
Amount owed on trade
Outstanding auto loan balance on the trade-in of old car.
Sales tax rate
Percentage rate of sales tax on the purchase. This rate will vary depending on your state.
Getting loan from banks and non-bank financial institutions. Normally, this interest rate is comparatively higher than the rate charged by the manufacturer. But if you use this higher rate to enjoy the rebate benefit, the outcome will be much competitive.
Low interest financing
The low interest financing of dealers are actually promotional interest rates for the auto purchasers. As the interest rate is very low (even zero percent!), most of the auto dealers will not allow you to get the benefit of manufacturer rebate at the same time. For the ease of calculation, this calculator will also assume that you can avail either of the options.
The amount of cash discount you receive during the purchase of new automobile. Here, it is assumed that, you can’t get low interest financing if you want to enjoy manufacturer rebate.
No sales tax deduction for trade-in
Check this box if your residing state doesn’t allow trade-in to reduce the sales tax. Checking this box will consider that you need to pay taxes on the full auto purchase price without deducting the trade-in value. Presently Michigan, Maryland, California, Hawaii, and the District of Columbia restrict sales tax deduction for trade-in.
Calculate sales tax before rebate
Check this box, placed at the end of the calculator, if the sales tax is calculated on the auto purchase price before adjusting the amount of manufacturer’s rebate.