Home equity loans generally often have lower interest rates than auto loans. One good reason to take a look at home equity loans to finance your automobile purchase.
Home Equity Loan vs. Auto loan Calculator
Home Equity Loan vs. Auto loan Calculator Definitions
- Number of months for the auto loan.
- Auto loan interest rate
- Annual interest rate for the auto loan.
- Fee charged for title transfer. Also include any other fees that may be due at delivery.
- Home equity interest rate
- Annual interest rate for the home equity loan. Home equity loan interest, as of January 1st 2018, is no longer an allowable itemized deduction on your income taxes.
- Home equity closing costs
- Any additional costs to the home equity loan. This should include any appraiser fees, points paid or other miscellaneous fees.
- Monthly payment
- Monthly payment for your auto financing.
- Total purchase price (before tax)
- This is the total cost of your auto purchase. Include the cost of the vehicle, additional options and 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.
- Rebates and cash down
- Total amount of cash and/or factory rebates 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 "No 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.
- 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, New Hampshire and Oregon have no sales tax on autos.