When looking for financing to buy a new or second-hand vehicle is very likely that we come across car title loans in dallas tx / TexasTitleLoan.net that offers us a lower interest rate. In some cases, contracting that insurance through the bank can be paid for, but in others, it will be more convenient to hire it through an insurance company and look for a cheaper car loan.
It is not mandatory to take out the insurance offered by the bank
The first thing that we must bear in mind before hiring any insurance linked to a car loan is that in no case are we obliged to contract the insurance offered by the lender entity. However, doing so through the same entity can mean an improvement in the terms of the car loan (lower interest rate or elimination of some commissions).
Therefore, before hiring the auto insurance offered by the bank, it is advisable to look for cheaper insurance and car loans with a lower interest rate. The Cofidis New Automobile Project Credit, for example, is a very good option, since it has an interest rate of 6.86% APR and does not include commissions or the obligation to take out a payment protection insurance linked to the car loan.
The cost of auto insurance is not always included in the TAE of the car loan
Another aspect that we must bear in mind is that the cost of auto insurance does not have to be included in the APR of the credit to finance the car. In the annual equivalent rate of the loans, only the cost of insurance that guarantees payment in case of death, disability or unemployment (that is, life insurance or payment protection) must be reflected. Therefore, we must read the fine print of the car loan to find out if the cost of the auto insurance offered by the bank is included in your APR or not.
If the cost of the insurance is not included in the annual equivalent rate, we must calculate if we pay for it to hire it or look for other cheaper car loans httP://Texastitleloan.net/Getting-Started-With-Title-Loans-In-Texas/. For example, if we want to finance the new car with a credit of € 15,000 at 5 years at 6.5% APR with an insurance that costs us € 400 a year, it will be more expensive than financing it with the Cofidis New Car Project Credit ( that has an interest of 6.86% APR) and contracting with another company an auto insurance that costs us € 300 a year. In the first case, we would pay € 4,609.54 by adding the cost of interest on the car loan and insurance, while with the Cofidis New Car Project Credit we would pay € 4,172.86, € 436.68 less.
Expenses that we must take into account before asking for a car credit
The cost of financing the car and the insurance will not be the only one that we will have to face when we acquire a new vehicle. These are the expenses associated with the purchase of a car:
- The cost of the car loan: interest, commissions, linked products, notary expenses, etc.
- The price of compulsory auto insurance.
- The registration tax and the circulation tax
- Other expenses: gasoline, maintenance, repairs, parking, etc.