How we worked it out
Updated as you change the numbers.
- Sales tax = $35,000.00 − $5,000.00 trade-in × 7% = $2,100.00.
- Amount financed = $35,000.00 − $5,000.00 − $3,000.00 + $2,100.00 tax + $1,200.00 fees = $30,300.00.
- Payment over 60 months at 7% = $599.98.
Method and assumptions
The amount financed is the price less the trade-in and down payment, plus tax and fees if you roll them into the loan. The payment uses the standard fixed-rate loan formula with monthly compounding.
Most US states tax only the difference between the price and the trade-in, which is a real saving of trading in; a few tax the full price. Rebates may or may not be taxed depending on the state.
Questions
Is it better to roll tax and fees into a car loan?
Paying them up front saves the interest on them and lowers the payment slightly. Rolling them in keeps cash in hand, at the cost of interest and owing more than the car is worth for longer.
Sources
Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.