Auto Dealer vs. Credit Union Financing Calculator

This auto loan calculator will help you compare credit union auto financing and low interest dealer auto financing.

In order to decide which will be the best deal for your personal situation, you need to compare particular parameters of the two types of financing such as price of the automobile, size of the rebate (rebates are rarely available in low interest dealer financing) and interest rates of the two financing options.

Used Auto Loan Terminology

Total purchase price (before tax)

The total auto purchase price includes the cost of the automobile itself, as well as any additional options and destination charges. The purchase price is before tax and does not include sales tax since sales tax will be automatically calculated and included in your total price after taxes.

Term in months

The time period for your auto loan, expressed in months.

Cash down

The cash (or down payment) you are able to put down for your auto purchase. The larger the cash down payment is, the smaller the loan for financing your vehicle will be.

Trade allowance

This is the reduction in the price of your new auto for any vehicle that is given (trade-in) as part of the deal. In some states the trade-in will also reduce the amount of sales tax due.

Amount owed on trade

The outstanding loan balance on your trade-in.

Sales tax rate

The sales tax percentage rate that is charged on your auto purchase.

Dealer financing

Low interest dealer financing is usually offered at significantly below the average auto loan interest rate and can be as little as 0% per year. However, most manufacturers will let you select either a manufacturer rebate or low interest dealer financing, but never both. Therefore, this auto loan calculator assumes that if you have chosen low interest dealer financing you are not eligible for any additional manufacturer rebate.

Manufacturer rebate

When you buy a new car some manufacturers pay a cash rebate. However, if you choose such a manufacturer rebate, most manufacturers will not allow you to choose low interest financing too. You will have to choose only one of the two options. Therefore, this auto loan calculator assumes that if you have chosen manufacturer rebate you are not eligible for dealer financing.

Credit union financing

The interest rate offered from a credit union is usually higher than the manufacturer's dealer auto financing, but it is still competitive, especially when combined with a manufacturer rebate. This auto loan calculator assumes that if you have chosen a manufacturer rebate you are not eligible for low interest manufacturer or dealer financing.

No sales tax deduction for trade-in

If your state does not allow any deductions for trade-ins and calculates the sales tax on the full auto purchase price, you should check this box. Otherwise, leave it unchecked.

Currently California, Hawaii, Maryland, Michigan and the District of Columbia are the states that allow no tax deductions for trade-ins. Additionally, Delaware, Montana, Oregon, New Hampshire, and Alaska have no sales tax on automobiles.

Calculate sales tax before rebate

If your state calculates the sales tax on your auto price before the manufacturer rebate, then check this box.

The auto loan calculators and the information available on this site are intended to serve only as general guidance regarding auto loans. Since they do not take into account your individual circumstances, we cannot and do no guarantee their accuracy or suitability to a specific purpose. We highly recommend you to consider the appropriateness of any information to your objectives before acting on it, and encourage you to consult a qualified professional regarding you particular personal situation.

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