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Dealer Financing vs. Credit Union

Use this calculator to help you compare financing between your credit union and low interest dealer financing. A dealer rebate, usually not available when you choose low interest dealer financing, combined credit union financing, can produce a lower initial loan balance, and in many cases, a lower monthly payment. The best option depends on the price of the vehicle, the size of the rebate and the interest rates available for financing.

Dealer Financing vs. Credit Union Financing

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Choosing the manufacturer rebate of MANUFACTURER_REBATE1 and credit union financing results in a loan of LOAN_AMOUNT1 with a monthly payment of MONTHLY_PAYMENT1. Low interest dealer financing at INTEREST_RATE2 results in a loan of LOAN_AMOUNT2 with a monthly payment of MONTHLY_PAYMENT2. The total of all of your payments** would be TOTAL_OF_PAYMENTS1 for the credit union option and TOTAL_OF_PAYMENTS2 for low interest dealer financing.

**GRAPH**

  INTEREST_RATE2 Dealer
Financing
MANUFACTURER_REBATE1 Rebate and
Credit Union Financing
Interest rate: INTEREST_RATE2 INTEREST_RATE1
Term in months: TERM TERM
Total purchase price (before tax): AUTO_SALE_PRICE AUTO_SALE_PRICE
Manufacturer rebate: MANUFACTURER_REBATE2 MANUFACTURER_REBATE1
Price after rebate: AUTO_AFREBATE_PRICE2 AUTO_AFREBATE_PRICE1
Sales tax*: SALES_TAX2 SALES_TAX1
 
Total sales price (after tax): TOTAL_SALE_PRICE2 TOTAL_SALE_PRICE1
Total down payment**: TOTAL_DOWN2 TOTAL_DOWN1
 
Loan amount: LOAN_AMOUNT2 LOAN_AMOUNT1
Monthly payment: MONTHLY_PAYMENT2 MONTHLY_PAYMENT1
Total payments***: TOTAL_OF_PAYMENTS2 TOTAL_OF_PAYMENTS1
Total interest paid***: INTEREST_PAID2 INTEREST_PAID1
 

Payment schedule

**REPEATING GROUP**






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Definitions

Total purchase price (before tax)
This is the total cost of your auto purchase. Include the cost of the vehicle, any additional options and any destination charges. Don't include sales tax in this amount. Sales tax will be calculated for you and included in your total after tax price.

Term in months
Number of months for your auto loan.

Cash down
Total amount of cash used in this purchase. The larger your cash down payment the smaller the loan you will need to finance this purchase.

Trade allowance
The total amount that you are given for any automobile that you trade-in as part of this purchase. In some states a trade-in can also reduce the amount of sales tax you will owe. See the definition for "Sales tax deduction for trade-in" for more information on trade-in vehicles and sales tax.

Amount owed on trade
Total loan balance still outstanding on the trade-in.

Sales tax rate
Sales tax percentage rate charged on this purchase.

Dealer financing
The incentive interest rate you may be able to receive from an auto manufacturer. These rates are usually significantly below standard auto loan interest rates. Low interest financing can be as little as 0% per year. Most manufacturers allow you to choose either low interest dealer financing or a manufacturer rebate, but not both. This calculator assumes that if you choose dealer financing you are not eligible for any manufacturer rebate.

Manufacturer rebate
A cash rebate paid by the auto manufacturer to you when you purchase a new vehicle. Most manufacturers allow you to choose either low interest financing or a manufacturer rebate, but not both. This calculator assumes that if you choose dealer financing you are not eligible for any manufacturer rebate.

Credit union financing
The interest rate you may be able to receive from a credit union. This is usually a higher interest rate than the manufacturer's dealer financing, but is often very competitive when used in combination with a manufacturer rebate. This calculator assumes that if you choose a manufacturer rebate you are not eligible for manufacturer or dealer low interest financing.

No sales tax deduction for trade-in
If you live in a state where your sales tax is calculated on your full purchase price check this box. If this box is unchecked sales tax is calculated on the purchase price less trade-in. Currently California, the District of Columbia, Hawaii, Maryland and Michigan allow no deductions for trade-ins when calculating sales tax. In addition, Alaska, Delaware, Montana, New Hampshire, and Oregon have no sales tax on autos.

Calculate sales tax before rebate
Some states will calculate sales tax on your purchase price before a manufacturer's rebate is applied. If your state calculates sales tax on the vehicle price before the rebate is applied, check this box.



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