The Finance Algorithm
§ Tool · tier 1 · independent

Dealer Finance vs Bank Loan Calculator.

Compare dealer finance offers with bank or credit union car loans

CalculatorFree, no signupOn-deviceupd May 2026
Inputs
Your numbers
$
$40k
$
$5k
%
6.9%

Rate offered by the dealer

5
$
$500

Establishment and document fees

%
7.9%

Rate from your bank or credit union

5
$
$200
$
$0

Some dealers discount if you don't use their finance

Math updates live as you change inputs · AI runs on submit

Awaiting inputs

Move the sliders or type in the form on the left — the math updates live as you go. Click Get AI verdict when you want a written analysis.

Dealers make money on finance, but sometimes their rates are competitive. This calculator compares dealer finance with bank or credit union loans to find the true best deal.

§ Worked examples

Real-world scenarios

Low Rate vs Discount

$35,000 car: Dealer offers 5.9% finance. Bank offers 7.5% but dealer reduces price by $2,000 if you use external finance.

Inputs

price:35,000dealerRate:5.9bankRate:7.5discount:2,000

Dealer finance: $38,300 total. Bank with discount: $36,800 total. The discount makes bank financing cheaper despite higher rate!

§ FAQ

Questions Australians ask

§ Glossary

Plain-English definitions

Dealer Finance
Car loans arranged through the dealership, typically from a finance company the dealer partners with.
Finance Commission
Payment the dealer receives for arranging finance - motivation to sell you dealer finance.
Pre-Approval
Getting loan approval before shopping, giving you buying power and a benchmark rate.