When we buy a car we must be attentive to the interests of any financing proposed by dealerships or car manufacturers. Let's find out together how much it costs us more to buy a car using a loan.

Our dream is to change cars as many times as possible during our life. Unfortunately, however, we always have to deal with a portfolio to at least consider. In fact, the car manufacturers are lately trying to push a lot on financing and to incentivize people to buy a new car through this purchase method.

While car manufacturers and dealerships once preferred to sell a car through a single economic transaction, financing is now all the rage. The reason is very simple. Seeing a figure of just 200 or 300 euros per month, to be able to grab the car of your dreams, is certainly very attractive and more attractive than seeing prices of around 20 or 30 or even more thousands of euros. To make a loan, however, we must consider that we will buy the car at a higher total price. This difference is none other than the so-called interests.

If we have to buy a car whose cost is € 20,000 for example, this amount is the so-called financed capital on which the interests will then be defined. Apart from any costs that must be incurred for the opening of the practice and so on, the largest part of the economic variation is certainly that of interest.

Very often within the loan agreement we can return the indications TAN and APR. The tan stands for nominal annual rate while the taeg stands for annual percentage rate. We should observe the taeg as it contemplates a whole series of costs that the tan does not consider .... we say that it is more complete.

If we therefore observe a taeg higher than 8% it means that our interest is quite high. If we note, for example, that we have made a loan for a capital of € 20,000 and the taeg is equal to 10%, it means that we will make an outlay of 10% more than the possible purchase with a single economic transaction. Put simply, our car will cost us € 22,000 in total.

In fact, if the taeg is equal to 10%, hypothetically, we will notice how by adding all the various costs and multiplying the installment indicated by the concessionaire by the number of months of the duration of the loan, we will have a figure equal to € 22,000.

We can therefore observe how a taeg between 3 and 5% is a good taeg and it is our goal to also look for offers related to interesting promotions. Without naming names, there are car manufacturers whose taeg is more advantageous and therefore in situations of economic hardship we must also consider this aspect.

Let us also remember to carefully observe all the possible early termination clauses and of that specific sum that we should give in case of advance.

At this point it is automatic to ask whether making a loan is something sane or not. It depends on the visions a person has. If a person does not have the immediate economic availability to be able to buy a car, financing is certainly the only viable solution.

The loan also makes it possible to keep the remaining amount of money in the bank, even for people who have the possibility of carrying out a single economic transaction. In the end, interest is nothing more than the cost we pay to have the liquidity still in the bank.