Car Financing Comparison Calculators

It is a loan the dealer arranges with a lender on your behalf when you buy the vehicle. The dealer may be allowed to add to the rate the lender approves you for, as compensation. Bringing a preapproval from a bank or credit union gives you a rate to compare.

Both offer standard installment auto loans, and the math is the same. Credit unions are member-owned and may price loans differently, so their rates and fees can vary from a bank's. Getting quotes from both gives you a fuller picture. Membership requirements apply at credit unions, so check eligibility before applying.

A preapproval tells you the rate and amount a lender will offer, which sets a benchmark before you negotiate. It helps you judge dealer financing and incentive offers such as rebates versus low APR. It can also keep you from negotiating on the monthly payment alone. Preapprovals usually expire after a set period, so time them with your shopping.

Yes, a personal loan can fund a vehicle purchase, and the vehicle is not collateral. Personal loans are often unsecured, so their rates can be higher than secured auto loans. Compare the APR and total cost over the same term before choosing. A personal loan may also come with an origination fee, which raises its APR.

APR reflects the interest rate plus certain finance charges, expressed as a yearly rate. Truth in Lending rules require lenders to disclose it before you sign. Because it captures some fees, it is a better basis for comparing offers than the interest rate alone. Two loans with the same rate can have different APRs if their fees differ, so ask each lender for the APR on the same amount and term.

The incentive itself is usually set by the manufacturer, but the vehicle price is negotiable separately. Settle the price first, then apply the incentive. That keeps the incentive from being absorbed into a higher price. Ask for the incentive to be shown as a separate line on the buyer's order, so you can confirm it was applied in full.

Not necessarily. The rate may be lower, but longer terms and closing costs can make the total higher, and the interest is generally not deductible when the money buys a vehicle. Your home also becomes collateral for the car. Compare both options at the same term with the home equity vs car loan calculator to see the real difference.

Ask the dealer or the manufacturer's lending arm which credit tier the offer requires, and check your own credit reports beforehand. Promotional rates are often reserved for strong credit. If you do not qualify, the rebate may become the better option. If the offer requires dealer financing, read the terms for any conditions on the term or down payment.