If you finance a car, don't just look at the monthly instalment. What matters is the effective annual interest rate, the term and the total cost of the loan.
Compare several offers – your own bank, a direct bank and dealer financing often differ significantly. A good credit rating lowers the rate. A down payment reduces the loan amount and noticeably the interest burden.
Mind the term: short terms mean higher instalments but less interest overall. Long terms ease the monthly budget but cost more in the end. A right to make extra repayments gives you flexibility.
Beware the popular balloon financing: low instalments but a high final payment. Always calculate the total cost and read the fine print on payment protection insurance and fees.