Home equity loans, typically, bear a lower interest rate compared to auto loans. Therefore, it has become a winning strategy by the smart people to finance automobile purchase with the home equity loan. This Home Equity Loan vs. Auto loan Calculator is fully equipped to give you an idea about how much you can save by putting this strategy into practice.
Term length for this auto loan.
Auto loan interest rate
Percentage rate charged yearly for the auto loan as interest.
Fees for the Transfer of title of the ownership. All other fees payable at delivery should be included here.
Home equity interest rate
Rate of interest for the home equity debt. This rate is charged annually on the outstanding loan amount.
Home equity closing costs
Appraiser fees, filing fees, misc. fees, points and other costs required to close the home equity loan contract.
Federal tax rate
Marginal rate of federal income tax applicable for you. We suggest you to contact your tax advisor and visit this site for further details.
State tax rate
Rate of state income tax as applicable on you. The tax rates are useful to calculate the amount of deductibles from a home equity loan.
Amount of dollar paid monthly for the auto financing.
Total purchase price (before tax)
The purchase price (cost of vehicle, destination charges, and other related fees) of the auto before adjusting any sales tax.
Rebates and cash down
Rebate is the cash discount received during the auto purchase. Cash down is the down payment made by you for that particular auto purchase. So, the more you pay as down payment the less financing you will require purchasing the vehicle.
The trade-in amount you can get for trading your old car as the payment of current automobile purchase. Depending on your state, this amount can be a tax-deductible item for the auto purchase.
Amount owed on trade
Size of the remaining balance on the auto trade-in.
Sales tax rate
Applicable rate of sales tax on the auto purchase.
No sales tax deduction for trade-in
Check this box if your state doesn’t permit trade-in amount to cut the sales tax. Checking this box will let the calculator consider that you need to pay taxes on the full auto purchase price without adjusting the trade-in value. Presently Michigan, Maryland, California, Hawaii, and the District of Columbia restrict sales tax deduction for trade-in.