Dealer Financing vs. Credit Union Financing

in

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.

This Financial Calculator requires SUN's Java™ Plug-in. If you see this message you will need to download SUN's Java™ Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing “Install ActiveX Control”.

    You can also get SUN's Java™ Plug-in here: Get the Java™ Plug-in!

    For more information about this Plug-in please visit: SUN's Java™ Plug-in
    For more information these financial calculators please visit: Financial Calculators from KJE Computer Solutions, LLC

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.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.


  • Share this
Syndicate content

 

Latest Posts

storyPersonal Info Protection? Help Yourself.
2 weeks 1 day ago
storyBuy! Sell! Buy! Sell!
2 weeks 1 day ago
storyWho Wants to Save Some Money?
2 weeks 1 day ago
pageMyMobile FAQs
5 weeks 2 days ago
storyImpulse--Bye!
7 weeks 4 days ago
storyWheels and Deals
7 weeks 4 days ago
storyBank On MOre: The Credit Unions of Missouri
7 weeks 4 days ago
storyThe Gift of Choice!
7 weeks 4 days ago
eventMember Appreciation Day—O'Fallon Branch
9 weeks 3 days ago
eventCollege Planning Seminar
9 weeks 3 days ago

test