Paying for a car in installments is a good idea when you can't (or don't want to) pay for it all at once. In this way, we can have the car in our possession even if we have not paid in full. However, we all know that paying in installments has a price called interest. And in some cases, it can be so high that the full outlay for the item in question is perhaps more worth it.
When buying a car in installments, there are different data that you must take into account so that when paying in full we do not get scared. The key concept in any payment with interest is the T.A.E., that is, the percentage that we are going to pay for using the deferred payment method in any purchase. The higher the T.A.E. the greater will be the extra amount that we will have to pay for the car.
The file of the car for sale should have, in addition to the T.A.E. the amount of the fee, the total price of the financed car and how many installments we would be talking about. Of course, all the conditions of the contract must also be reflected. Read it well before signing anything because some clauses may creep in with which you may not agree.
In these conditions of the loan, it must be specified which financial entity is the one that will assume the payment of the car. We must pay close attention to this, since we must be sure that said entity is supervised by the Bank of Spain and that it offers clear and transparent information. Among the data that the financial company must explain are the TIN and, as we have said, the APR of the loan.
The difference between the TIN and the TAE is that the first is the Nominal Interest Rate that is applied to a financial product without taking into account the additional costs derived from it, such as commissions or opening expenses. The APR, on the other hand, is the Annual Interest Rate, which takes into account all the additional costs of the financial product. To have a much more accurate idea of what the postponed car will cost us, always look at the APR.
Before buying the car in installments through the financial institution with which the seller works, it is advisable to go to the savings bank with which it normally operates, since sometimes it may be better to request a loan.
In short, there is no fixed fee for a car loan. The best thing will be to take into account the TIN and the APR, know how much we will pay per month and for how long and verify that the financial is legitimate.
