Dealer vs. Credit Union Financing Calculator

Use this calculator to determine which type of financing results in a lower monthly auto loan payment. Please contact us with any questions.
 

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Dealer Financing vs. Credit Union Financing Calculator

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 with 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.
By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.



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Term in months can't be less than 12
*indicates required.
Credit union financing:
Dealer financing:
Column Graph: Please use the calculator's report to see detailed calculation results in tabular form.

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 rate

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

Enter a rebate only if it is offered when you turn down a dealer's special low interest financing. 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 rate

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 and Michigan allow no deductions for trade-ins when calculating sales tax. In addition, Alaska, Delaware, Montana and New Hampshire have no sales tax on auto purchases. Oregon currently only collects tax on new vehicles.

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.


Copyright © Peach State Federal Credit Union
www.peachstatefcu.org

Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax 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.