1. What is an Auto Loan from Dealers?

An auto loan from dealers is financing provided directly by the car dealership or through their lending partners. The loan amount is calculated by subtracting your down payment from the Out-the-Door (OTD) price of the vehicle.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( OTD\ Price \) — Total vehicle price including all fees and taxes
• \( Down\ Payment \) — Your initial payment at purchase

Explanation: This calculation determines the principal amount you'll need to finance through the dealer's loan program.

3. Importance of Loan Calculation

Details: Calculating your exact loan amount helps in budgeting, comparing financing options, and negotiating better terms with the dealer.

4. Using the Calculator

Tips: Enter the vehicle's OTD price (including all fees) and your planned down payment in USD. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in OTD price?
A: OTD price includes the vehicle price, sales tax, title fees, registration fees, documentation fees, and any other mandatory charges.

Q2: How much down payment should I make?
A: Typically 10-20% of the vehicle price is recommended, but more down payment means lower monthly payments.

Q3: Are dealer loans better than bank loans?
A: Dealer loans may offer convenience and promotions, but always compare rates with banks/credit unions for the best deal.

Q4: What affects my loan approval?
A: Credit score, income, debt-to-income ratio, and loan-to-value ratio are key factors dealers consider.

Q5: Can I negotiate the loan terms?
A: Yes, interest rates and loan terms are often negotiable just like the vehicle price.