Finance Car or Pay to Cash
A rise in the purchase and sale of cars is a symptom of economic recovery, and the automobile market knows this well.
According to data offered by the National Association of Dealers of Vehicles (Ancove), the registrations of cars and SUVs in Spain reached a volume of 128,175 units in March, which represents an increase of 2.1%.
Thus, in the first quarter, the automobile market accumulated growth of 10.5%. Although this low figure is due in part to the fact that March has had two working days less for Holy Week. And also because sales to rental companies have reduced their growth after a few really good months.
Also, according to the Automobile Market report prepared by the Observatory, 25% of the Spanish automobile fleet is more than 10 years old. Only 15% of the respondents were those who bought their car a year or less ago.
Finance car or pay cash
Acquiring a car is an important decision and that, in many occasions, involves a large outlay of money; In addition, it is a long-term decision.
According to the data offered, in the last year the Spaniards spent 17.155 euros on average in the purchase of a car.
And it is clear to the Spanish: 44% of respondents bought their car in a single-brand dealership, 35% did so in a multi-brand car and only 10% bought a second-hand car.
In this way, who says that the brand is not important would be lying: only 9% of respondents recognize that the brand of the car is little or nothing important in their purchase decision …
The factors that influence when choosing a vehicle or another are varied. One of the most weight is the price : 74% of respondents consider it a determining factor when changing their vehicle.
Also, duration (63%) and functionality (55%) also play an important role in the purchase decision.
But, when it comes to buying, what do the respondents select first? Brand or dealer?
More than half of Spaniards recognize choosing the brand first and then going to the dealer that sells it.
Thus, the top 3 of the most valued qualities are safety, quality/price ratio, and reliable and long-lasting brands.
THE BEST CAR FINANCES
The financing of cars is one of the most recurrent options when buying a vehicle, whether new or second hand.
Also, according to the latest data offered by Cetelem, the financing offered at the point of sale was placed last year at 32% of sales.
When a car is financed
The option of buying a financed car has a lot to do with the age at which we bought a car according to the data from the study carried out by the Observatory on vehicle purchase habits.
In Europe, the average age to buy a new car is 52 years, while in emerging countries the average low is below 45 .
By sex, British and Japanese women are the ones that demand the newest vehicles.
How a car is financed
In addition, in the eight European countries analyzed (Germany, Belgium, Spain, France, Italy, Poland, Portugal and the United Kingdom), consumers wait for their children to leave home to devote that budget to the purchase of a new car.
In this way, if your children have already left the family home and are thinking of buying a new vehicle, here we bring you the best car financing from the hand of some banks.
How much does it cost to finance a car
- The online car loan is the one that offers the lowest nominal interest of all existing ones. This type of loan allows you to request between 3,000 and 75,000 euros to be repaid in a period of between two and 10 years; it also contemplates commissions for total or partial cancellation of the same before the established time.
- Orange Loan: this loan proposes an interest of 5.95%, for a minimum of 3,000 euros and a maximum of 60,000 euros. In addition, ING does not charge any commission, opening or early cancellation, which is always an advantage. Another point in favor is that it is aimed at both new and current customers and that, in addition, does not require direct debit of payroll with a minimum income.
- Direct Loan: this loan also has a very appetizing nominal interest, situated at 5.90%, with a minimum amount of 150 euros and a maximum of 60,000 euros. In addition, it does not present any type of commission, opening or early cancellation. It is open both to new customers and to those who already are of other financial products.
- Loan Now You : with an interest equal to the credit of Ibercaja, 5.95%, this loan has the advantage that it does not demand any type of commission. That is to say that there is no need to pay because the entity opens a study on the suitability of credit, as it happens with some banks. Of course, this type of loan requires a demonstrable minimum income of 600 euros and extends the maximum term of extinction of credit to ten years.
- Santander Direct Office Personal Loan : this offer allows the contracting of credit of up to 60,000 euros at a nominal interest rate of 5.95%. This personal loan does not have opening fees, nor do they contemplate them for the study of the credit or the early cancellation of the loan.
FINANCING CARS WITHOUT ENTRY
The purchase of a car is a major expense, so much so that it is often said that after housing, the purchase of a vehicle, whether new or second hand, is the most expensive transaction of our lives.
Generally this operation has a very high cost and that is why many people choose to finance the final amount.
Pay car in installments
Today there are many types of financing, and in some of them, it is not necessary to give an entry so we can pay the car in comfortable installments without disbursing a large amount of money at the start.
The concessionaires allow postponing the payment by means of small monthly payments, which has greatly facilitated the purchase of cars.
For example, in the case of Fiat, it allows the vehicle to be financed in a personalized way, so it adapts to the customer’s availability.
Thus, traditional financing is one of the options most valued by customers, and where you can choose the term and pay, without surprises, with the same fee from the beginning to the end of the contract.
On the other hand, contrary to what some people think, the self-employed can also finance cars. In addition, it is not always advisable to purchase a car when you are self-employed; Before making the decision you have to compare the different options available and the advantages of some alternatives, such as leasing.
What are the main advantages of leasing?
- It is not necessary to get into debt: if the business is going badly for you, you stop using the car and do not end up with debts.
- Repairs, revisions, ITV, oil changes, in most cases, are included.
- Less taxes, since you can put the rent of the car as business expense.
- Change the car: if the business is going well you can access a higher renting or simply continue with the renting of the new vehicles that are available.
BUYING UNFINISHED CARS
But, despite the advantages of car financing, some customers prefer to pay their cars in cash and forget about paying monthly payments .
However, we must take into account many factors when we buy a new vehicle.
Buy car cash
Some of the tricks that the OCU advises to take into account are, for example, choosing the ideal moment, comparing budgets and being extremely astute, in other things.
In some cases, the difference between the initial price offered and the price finally subscribed , depending on the brand or the location of the dealer, can vary up to 24%.
Pay cash car
First of all, it is important to have a budget and set the starting point to buy a new car.
It is convenient to start by looking at the price on the manufacturer’s website , taking into account the equipment included in the car, to go to the dealership with a more or less formed idea .
But besides setting a budget, you have to compare and compare because buying a new car in Madrid is not the same as in Ávila.
Buy car without financing
Do not rule out visiting several dealers in the same city and nearby provinces because you never know where the best offer will be .
And, once all the above factors have been analyzed, we have to start the negotiation . It is important that we have the budget always present, and pay attention to the discounts that can occasionally play a trick on us.
Also, one of the options to achieve a more than acceptable price is to opt for any of the cars that have exposure or that are already enrolled, which will not have more than 100km.