In addition, we need to know which dealer and the bank usually apply very similar commission for opening and studying the car loan, generally between 1% and 3% of the price of the vehicle.
The advantages of the dealer:
- According to data from the National Association of Motor Vehicle Dealers (GANVAM), more than 60% of the car loans granted at this time come from dealerships (in 2007 they were only 30%), and this is It owes its many advantages. The main ones are the ease, comfort, and speed since you do not have to make a pilgrimage looking for a bank or you have to return to give all our data.
- In addition, in general, the interest applied to the loans of the concessionaires is lower than that of the banks, and they accept cases that the bank has been able to discard.
- As a last advantage, it is worth mentioning that they usually accept our used car, regardless of the brand, in exchange for a discount on the total price. It is true that the money they give us for our old car is much less than what they would give us if we sold it on our own, but it saves a lot of time and inconvenience.
When the bank is the best option:
- However, accepting the help of the dealer also has many disadvantages that we will hardly find in a bank. The first, which usually force to contract life and unemployment insurance, which are also paid in a Single Premium Financed. This means that the total cost of insurance during the years that oblige us to hire it is added to the value of the car and on this total the interest is applied, which of course makes them higher than before. The consequence is that TAE interest on the car loan increases.
- Urgent car loans, insurance, and 100% online
- Car credit with low interest and commissions
- Car credit with customized conditions, tailored to the customer
- Flexible, solvent and fast car loan
- Car credit with immediate response and favorable conditions
- The client must be legally adult (18 years or more)
- The borrower must be a resident of the Spanish State
- The applicant must have a bank account with income and liquidity
- You must have your valid ID and your active phone and email
- It cannot be registered in a file of defaulters, such as the ASNEF
1. What interests will apply to the car loan?
As with any loan, the first thing that must be analyzed before choosing an offer is the interest that each of them applies. That means that two things will have to be observed:
-The Nominal Interest Rate (TIN), that is, the interest charged by the bank for lending the money.
-The Annual Equivalent Rate (APR), which is the variable that allows knowing the real cost that will have to be paid for a loan taking into account the TIN, other costs (such as commissions) and the term in which the debt will be repaid.
2. What commissions should be taken into account in car loans?
After the interest, commissions are the second major expense that will have to be assumed when a car purchase loan is contracted. In an operation like this, there are two fundamental charges:
-The opening commission and/or study: serves to compensate the bank for the procedures prior to the granting of the loan and are expressed as a percentage although, in some cases, may be subject to a minimum amount in euros
-The commission for total or partial early cancellation: a good part of the loans for the purchase of a car apply this charge and, in all cases, the entities charge the maximums fixed by law: that is, 1% if there are more than one year to end the life of the loan, and 0.5% if there is less time.
3. What are the implications of applying for a car loan?
Most offers of loans to buy a car not only require the consumer to pay interest and commissions: they also require that you hire a series of extra products that will keep you tied to the entity throughout the term of repayment of your debt and that, in addition, they could suppose an extra expense to him.