Dealer vs. Credit Union Financing Calculator

This car loan calculator will help you decide which car financing option will be better for you – credit union car financing or low interest dealer car financing.

Often, credit union car financing turns out to be the better deal, despite its higher rate, when it is combined with manufacturer rebate. However you should compare the two options and decide which is better in your particular situation based on the price of your car, the size of the rebate available and the interest rates offered.

Index of the Used Car Loan Terms:

Total purchase price (before tax)

Your total car purchase price is comprised of the cost of the car plus any additional options and destination charges. However, do not include sales tax here since it will be calculated and included in your total after tax car price.

Term in months

The period of time over which your car loan will be amortized, expressed in months.

Cash down

This is the amount of money you are willing to put down for your car purchase. The cash down payments will have a direct effect on your car financing – the larger the down payment, the smaller the loan you will have to take.

Trade allowance

This is the price reduction for your new car that you are given for the handover (trade-in) of any other car. The sales tax may be also reduced due to the trade-in in some states.

Amount owed on trade

The loan balance that is still outstanding on the trade-in.

Sales tax rate

The percentage rate of sales tax that will be charged on your car purchase.

Dealer financing

Typically, low interest dealer financing offers significantly lower that the average auto loan interest rates, sometimes as little as 0% per year. Keep in mind that generally manufacturers do not allow both a manufacturer rebate and low interest dealer financing. This is why our car loan calculator lets you choose either manufacturer rebate or low interest dealer financing, but not both.

Manufacturer rebate

This is the cash rebate that some car manufacturers let you benefit of when you buy a new car. However, generally if you choose to be paid the manufacturer rebate, you will not be allowed to choose low interest financing too. This is why our car loan calculator lets you choose only one of the two options.

Credit union financing

The interest rate credit unions provide is usually not that competitive and higher than the manufacturer's dealer car financing, but when combined with a manufacturer rebate it can turn out to be a great deal.

No sales tax deduction for trade-in

Different states may or may not allow deductions for trade-ins. If your state calculates the sales tax on the full car purchase price, then check this box.

Currently the following states do not allow tax deductions for trade-ins: Hawaii, California, Michigan, Maryland, and the District of Columbia. To add to these, Montana, Oregon, Delaware, New Hampshire, and Alaska do not have sales tax on cars.

Calculate sales tax before rebate

You should check this box if your state is one of those that calculate the sales tax on your car purchase price before any manufacturer rebate.

The information on this site and the car loan calculators provided are intended only to assist you with your car loans decisions without providing any personal investment advice. Since we do not consider your personal financial situation, we cannot and do not guarantee that the information provided here will be applicable or accurate to you. We advise you to seek personalized professional advice regarding your personal situation.

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