Are you stuck between dealer financing and credit union financing options? This calculator is here to crack your dilemma by comparing them and finding the cost-effective one. While financing an auto purchase, you have two options – the low interest dealer financing or the manufacturer rebate and the high interest auto loan from the credit union. Integrating the purchase price, term length, dealer’s financing rate, credit union’s financing rate, rebate, down payment, tax rate and other specifics, ACalculator will find out the payments for each of the option.
Total purchase price (before tax)
The purchase price (cost of vehicle, destination charges, and other related fees) of the auto before adjusting any sales tax.
Term in months
Length of time (in month) for which you are seeking the financing opportunity.
The amount of down payment for the auto purchase. The more you pay as down payment, the less you need to finance for.
This is the trade-in amount you will get for trading your old car as a payment of your current auto purchase. Depending on the state you reside, this amount can reduce the amount of sales taxes you need to pay.
Amount owed on trade
It’s the remaining loan balance on the trade-in
Sales tax rate
Percentage rate that is charged on the auto purchase as the sales tax.
Dealer financing offers promotional interest rate 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.
Credit union financing
Rate of interest it will take to get financing from the credit unions. This interest rate is always higher than the interest rate offered by the dealers but very competitive in the sense that you are still eligible to avail manufacturer rebate which was not possible in case of low interest dealer financing.
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 if the sales tax is calculated on the purchase price without adjusting the manufacturer rebate.
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Dealership vs. Credit Union Auto Financing Calculator