Car Dealer vs. Credit Union Financing Calculator

You can use this car payment calculator in order to compare whether credit union auto financing or low interest dealer car financing will be better for you.

For the comparison to take place you need to input you car price, the size of the rebate you can get (have in mind that rebates are generally not available in low interest financing) and the interest rates of the two car financing options.

Since generally manufacturers will no allow you to choose both low interest financing and rebate, our calculator assumes that if you have chosen a manufacturer rebate you are not admitted to manufacturer or dealer low interest financing.

Car Payment Terms Reference:

Total purchase price (before tax)

The total purchase price includes the cost of your car plus any destination charges and additional options. Sales tax should not be included here since it is calculated and added to your total after tax price.

Term in months

The number of months for which you take your car loan.

Cash down

The amount of cash you put down (the down payment) for your car purchase. This cash will have a direct effect on your car payments since the larger the cash down payment, the smaller the car financing that is needed.

Trade allowance

This is the total amount given to you for your car trade-in. The sales tax may also be reduced as a result of the trade-in in some states.

Amount owed on trade

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

Sales tax rate

The percentage rate of the sales tax that is levied on your car purchase.

Dealer financing

This is the incentive interest rate that you are offered by a car manufacturer. This dealer financing rate is usually significantly lower than the average car loan interest rate and can be as little as 0% per year.

Manufacturer rebate

This is the cash rebate provided by the car manufacturer when you purchase a new car.

Credit union financing

This is the interest rate offered by the credit union. It is usually higher than dealer financing, but when combined with a manufacturer rebate it is still competitive.

No sales tax deduction for trade-in

Some states do not allow tax deductions for trade-ins. If your state is one of those and takes the full purchase price when calculating the sales tax, you should check this box. If it calculates the sales tax on the car purchase price less the trade-in, leave it unchecked. Currently the only states that allow no tax deductions for trade-ins are: California, Hawaii, Michigan, Maryland, and the District of Columbia. Additionally, Montana, Delaware, Oregon, Alaska, and New Hampshire do not have sales tax on automobiles.

Calculate sales tax before rebate

If your state uses the car price before the manufacturer rebate in order to calculate the sales tax, then you should check this box.

The information and interactive car payment calculators that are provided on this site are made available as general assistant guidance in regards to car loans and payments. We do not guarantee that any information or calculations will be accurate or applicable to your personal financial situation, circumstances, or objectives. Accordingly, before making any final decisions we encourage you to consult a qualified professional and get personalized advice.

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