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Auto Loan vs. Home Equity Loan
St. Cloud Federal Credit Union
Home equity loans often have lower interest rates than auto loans and the interest may be tax deductible. Those are two good reasons to consider using home equity loans to finance your automobile purchase. Click the "View Report" button for more details, including a payment schedule.

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Definitions


Amount Owed On Trade
Total loan balance still outstanding on the trade-in.

Auto Loan Interest Rate (APR)
Annual percentage rate for the auto loan.

Cash Down
This is the money you have available to be used for fees and your down payment.

Fees
Fee charged for title transfer. Also include any other fees that may be due at delivery.

Home Equity Closing Costs
Any additional costs to the home equity loan. This should include any appraiser fees, points paid or other miscellaneous fees.

Home Equity Interest Rate (APR)
Annual percentage rate for the home equity loan.

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.

Purchase Price
The amount, before taxes and fees, that you are paying for this auto.

Sales Tax Rate
Sales tax percentage rate charged on this purchase.

State and Federal Tax Rates
Your state and federal marginal income tax rates. These rates are used to determine the tax savings associated with a home equity loan.

Term
Number of months for the auto loan.

Trade Allowance
Total dollar amount given to you for your auto trade-in.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy regarding your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals, at the credit union or elsewhere, regarding all personal finance issues.