The trick to save up to 4,000 euros if you are going to buy a new car

Unless one has tens of thousands of euros in the bank, which is common when buying a new vehicle is to acquire it with financing. In this way, buyers can make the payment in installments in exchange for interest.

Financing can generally be obtained through financial of the dealership itselfwhich facilitates the procedures, and through a bankwhich requires more procedures. But which of the two options is more advantageous?

To solve this dilemma, the Organization of Consumers and Users (OCU) has studied the offers offered by both banks and finance companies. The conclusion of their study is clear: “Discounts offered by dealers linked to car financing rarely pay off.”

Financing, other products and abuses

This conclusion is based on three points. The first, because interest rates The prices set by dealers are usually much higher than those offered by banks for their personal loans.

“A car with a sales price of 30,000 euros can be reduced to 27,000 euros with the discount linked to the dealer’s five-year financing. The problem is that if the APR of this financing is high, for example, 13.8% , they end up paying more than 34,000 euros,” exemplifies OCU.

The second reason that the organization finds is that this financing offered by concessionaires It is usually linked to the contracting of other products and services. “They may require up to 3.95% of the amount lent as an opening fee, require the contracting of life insurance, payment protection insurance, a fine claim service, maintenance programs, extensions of guarantee, etc.”, explains the organization.

And the third reason he finds is that some of the clauses that they impose could be considered abusive. “Starting with the requirement to contract a single premium life insurance whose amount is added to the amount of the financing, with the same interest, and continuing with the introduction in the contract of permanence clauses that establish the impossibility of canceling the financing until after a minimum period, at the risk of paying a penalty equal to the discount applied,” describes the organization. “Situations in the opinion of OCU contrary to the legislation,” they consider.

For all these reasons, the organization recommends in this situation compare APR of the dealer’s finance (which can exceed 17%) with that of personal loans from banks (from 6%). In this way, the savings can reach 4,000 euros, according to OCU calculations.

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