It is still very rare to be able to pay your car directly, in cash, without going through the loan of an amount from a financial institution. So you often have to go through a loan to finance your budget. And to make the right choice, it is better to have a calculator by hand to make its calculations by taking for reference point the total cost of the loan, that is to say the interest and fees payable included in the value of the loan. borrowing.
We must not especially refer to monthly payments
That are ultimately misleading, especially if you opt for a variable rate loan. Also avoid confusing the interest rate and the credit rate which represents the percentage of all credit charges imposed while the interest rate represents the rate of return on the loan for the lending bank.
For clarity, it is better to set a benchmark with a practical case. Take for example a used Honda Civic on Kijiji, and apply on the amount of sale the terms of loans collected from different banks. Then compare the results to see what is best for you. With practice, everything becomes much clearer for the sums involved.
The main objective of all your research
Is obviously to find the lowest credit rate for the mortgage of your car. Once this first comparison done, you will have made a first sort. Then you have to do the same thing with the car that interests you. Also ask about the average price of your model following its engine and mileage from different sources to estimate the true value of your car, and so, do not go on a skewed calculation.
You can also try to work to reduce your costs by financing your car by the credit company affiliated with the car manufacturer (the famous interest rate at 0%). If we pay attention to the conditions of applications, this can sometimes be very interesting if the amount in cash is more important. Same, if an independent finance company is used. Because by unlocking the money upstream, it allows to pay his car for cash, and therefore to take advantage of discounts granted by manufacturers while having more flexibility (not being bound by this system to the car manufacturer).