When we consider buying a new vehicle, we should not only look at its technical specifications, but also at all the aspects that influence financing. This is the warning from the Bank of Spain and, below, we will tell you all the details.
When we consider buying a new vehicle, there are many aspects that we look at to ensure that our decision is the right one: the engine displacement, the power, the design or even the extras that are available. A set of elements that cause, in many cases, The decision is delayed for several weekseven months, until we find the model of our dreams.
However, the same does not occur when we study in detail the terms and conditions of the financing. Although its impact is as important or more important than the rest of the elements mentioned previously, the reality is that we do not always devote the attention we should to it. At least, that is what the Bank of Spain says in one of its Latest Posts. The organization, in addition to warning of how important it is study in detail any element, recommends that we look at the following variables.
Before buying a car
The first warning mentioned by the Bank of Spain is that the car can never be cheaper if we ask for financing. To know the final price of the car if we finance it, we must add the initial deposit, the opening commission and the associated costs, the monthly payments and the final payment. Although at first it may seem that the RRP is higher than the price subject to financing, We must verify that this is really the case if we add up all of the above.
In addition, we must also assess whether the number of months we are going to be there is worth it. paying a loanAccording to the agency, it is quite common to have to pay this amount for three to four years, so it is advisable to analyse it in detail. And, above all, to plan on being able to meet this payment over the next few years.
The TAE is one of the most important indicators on any financed purchase. The lower the APR, the lower the financing cost. Therefore, it is a good variable to compare between various financing options.
Associated expenses
When we finance a new vehicle, there are many costs associated with the financing itself that we must take into account. Among them, for example, the opening fee, which must be paid at the same time that we begin the financing together with the initial down payment. Normally, this amount is between 1 and 3% of the total loan.
In addition, we must also analyze the final fee which will usually be a much higher amount than the average for others. If this is the case, you should take this into account when calculating the total cost of said financing and checking whether you can actually afford said vehicle.
Once we have added all the above, the result will be total amount owed. What is the total amount we will owe? pay for financing. The banking authority recommends that we compare this amount with the RRP before deciding on financing. Once we have all our expenses under control and we know how our domestic economy is organised, we can make a decision based on this information.
