If the time has come to leave buses and taxis behind and start transporting you in your own vehicle, financing is a fundamental point to achieve it. Although some people choose to buy their car in cash, most use different credit instruments to do so, including auto loans.
These credits are specially designed for the purchase of a car, as its name says, which is why they have friendly features for applicants. However, if you do not take into account certain aspects, you could end up choosing one that not only does not suit you, but damages your finances and puts you in trouble.
To avoid this, these are four steps that will help you find the most convenient car loan for your profile.
Calculate how much you can pay monthly
First, you should know how much you can return to the bank each month. For this, the ideal is that you verify your budget, how much goes in and how much goes out of your account. How much money do you have left once you paid all your obligations? That is what would be available and you decide if you will use 100% to pay the credit or not.
Look at the TCEA
The interest rate (TEA) is important, but more important is the Annual Effective Cost Rate (TCEA), since it includes ALL credit costs, that is, insurance, commissions, account statements, etc. By comparing the different alternatives you can verify which the most convenient entity.
Consider different deadlines
Use the Titania car loan simulator to verify how much the fees would amount if you finance the vehicle in three years, four or five years, in this way you will check how much your budget can hold. While it is advisable to choose a comfortable fee, not always paying the minimum is the best, as it means that it will take longer to cancel the debt and pay more interest.
Consider both options and choose an intermediate and suitable for your finances.