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Auto Loan vs Home Equity Loan
Home equity loans often have lower interest rates than auto loans and the interest maybe tax deductible. Two good reasons to take a look at home equity loans to finance your automobile purchase.
Definitions
| Term | Number of months for the auto loan. |
| Purchase Price | The amount, before taxes and fees, that you are paying for this auto. |
| Auto loan interest rate (APR) | Annual percentage rate for the auto loan. |
| Cash down | Check this to have your total down payment be a specific cash amount. This money will be used for fees and your down payment. |
| Percent of purchase price | Check this to put a percent of the purchase price as your cash down. This money will be used for fees and your down payment. |
| Trade allowance | Total dollar amount given to your for your auto trade-in. |
| Amount owed on trade | Total loan balance still outstanding on the trade-in. |
| Fees | Fee charged for title transfer. Also include any other fees that may be due at delivery. |
| Sales tax rate | Sales tax percentage rate charged on this purchase. |
| Home equity interest rate (APR) | Annual percentage rate for the home equity loan. |
| Home equity closing costs | Any additional costs to the home equity loan. This should include any appraiser fees, points paid or other misc. fees. |
| 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. |