Credit Union Auto Loan Calculator
A credit union auto loan calculator is an automated tool that helps users determine the financial implications of taking out an auto loan from a credit union. Credit unions often offer competitive rates and terms on auto loans compared to traditional banks. By entering information about the loan amount, interest rate, and loan term, users can estimate their monthly payments, total interest costs, and amortization schedule.
- New Car Auto Loan: Used to purchase a brand new vehicle from a dealership
- Used Car Auto Loan: Used to purchase a pre-owned vehicle
- Refinance Auto Loan: Used to replace an existing auto loan with better terms
New Car Auto Loan: Paying Back a Fixed Amount Periodically
Use this calculator for basic calculations of credit union auto loans, or click the links for more detail on each.
Used Car Auto Loan: Paying Back a Lump Sum Due at Loan Maturity
Refinance Auto Loan: Predetermined Amount Due at Loan Maturity
Use this calculator to compute the initial value of a refinance auto loan based on a predetermined face value to be paid back at loan maturity.
New Car Auto Loan: Fixed Amount Paid Periodically
New car auto loans are used to purchase a brand new vehicle from a dealership. Routine payments are made on principal and interest until the loan reaches maturity (is entirely paid off). Some common uses for new car auto loans include purchasing family vehicles, work vehicles, or recreational vehicles. Below are links to calculators related to loans that fall under this category, which can provide more information or allow specific calculations involving each type of loan.
| New Car Loan Calculator | Brand New Car Loan Calculator |
| Auto Purchase Loan Calculator | Vehicle Financing Calculator |
| Car Loan Payment Calculator | Auto Financing Calculator |
Used Car Auto Loan: Single Lump Sum Due at Loan Maturity
Used car auto loans are used to purchase a pre-owned vehicle. Unlike the first calculation, which is amortized with payments spread uniformly over their lifetimes, these loans have a single, large lump sum due at maturity. Some loans can also have smaller routine payments during their lifetimes, but this calculation only works for loans with a single payment of all principal and interest due at maturity.
Refinance Auto Loan: Predetermined Lump Sum Paid at Loan Maturity
Refinance auto loans are used to replace an existing auto loan with better terms. The face, or par value of a refinance auto loan, is the amount paid by the borrower when the loan matures. Refinance auto loans are typically structured as zero-coupon loans where borrowers receive funds at a discount to their face value, then pay the face value when the loan matures.
Credit Union Auto Loan Basics for Borrowers
Interest Rate
Credit union auto loan interest rates are often lower than traditional bank rates due to their not-for-profit structure. Interest rate is the percentage of a loan paid by borrowers to lenders. For most auto loans, interest is paid in addition to principal repayment. Auto loan interest is usually expressed in APR, or annual percentage rate, which includes both interest and fees.
Compounding Frequency
Compound interest is interest that is earned not only on the initial principal but also on accumulated interest from previous periods. Generally, the more frequently compounding occurs, the higher the total amount due on the loan. In most auto loans, compounding occurs monthly.
Loan Term
An auto loan term typically ranges from 24 to 84 months. The term of the loan can affect the structure of the loan in many ways. Generally, the longer the term, the more interest will be accrued over time, raising the total cost of the loan for borrowers, but reducing the periodic payments.
Types of Credit Union Auto Loans
There are several types of credit union auto loans available to members.
New Car Auto Loans
New car auto loans are used to purchase a brand new vehicle from a dealership. These loans typically feature competitive terms (24-84 months) and lower interest rates than used car loans because new vehicles have higher resale values. New car auto loans generally have a higher chance of approval for borrowers with good credit.
Used Car Auto Loans
Used car auto loans are used to purchase a pre-owned vehicle. These loans reduce the risk for borrowers by providing more affordable financing options. Used car auto loans typically feature terms that match the vehicle's remaining useful life.
- Character—includes credit history, income stability, and membership status
- Capacity—measures a borrower's ability to repay a loan using income and expense analysis
- Capital—refers to the borrower's down payment and available assets
- Collateral—the vehicle being purchased serves as security for repayment of a loan
- Conditions—the current state of the auto market and economic conditions
Used car auto loans typically feature competitive interest rates and terms that match the vehicle's remaining useful life. Lenders may sometimes require a larger down payment (10-20%) for used car loans.
If borrowers do not repay auto loans, lenders may repossess the vehicle. Auto loans generally feature lower interest rates than unsecured personal loans because the vehicle serves as collateral.
Examples of auto loans include new car loans, used car loans, and refinance auto loans.