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Is an Auto Loan or Home Equity Loan best for purchasing a car?

This calculator helps determine if a home equity loan may be better than standard automobile financing for purchasing a car. Home equity loans often have lower interest rates than auto loans and the interest may be tax deductible.

Auto Loan Information
	Purchase price (pre tax)	Loan term	MonthsYears
	Interest rate	Cash down
	Fees	Sales tax rate
	Trade allowance	Amount owed on trade
Check here if your state does not allow deductions for trade-ins when calculating sales tax
Home Equity Loan Information
	Interest rate	Closing costs
	Federal tax rate	State tax rate

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A home equity loan will save you $1,845.32 over the life of the loan.

Loan Payment Information

	Auto Loan	Home Equity Loan
Monthly payments	$490.51	$472.15
Total payments	$23,544.63	$22,662.97
Tax savings	$0.00	$963.66
Tax adjusted total savings		$1,845.32

Calculator tips

This calculator uses monthly compounding and monthly payment frequency.

Currently:

Some states do not tax the sales of automobiles.
If you purchase a vehicle in one of these states, enter 0% for the sales tax rate.
Some states do not allow deductions for trade-ins when calculating sales tax.
If you purchase a vehicle in one of these states, be sure to check the box under Auto Loan Information.