What risks do we face when financing the purchase of our vehicle?

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Opting for the financing offered by the dealership is usually the (apparently) most convenient, direct and fastest option to get a vehicle. But, faced with the second highest transaction that a family faces behind the purchase of a home, it is mandatory to stop and ask ourselves: Is it more advantageous for our interests to opt for financing or is it preferable to pay in cash ? What risks do we face as consumers if we choose to finance? Is it better to accept the conditions proposed by the dealers' finance companies or is it preferable to rely on traditional banks ? Let's see. “Cash purchasing is always more favorable” In the opinion of Antonio Gallardo Sánchez-Toledo , head of studies at ASUFIN, “if we look exclusively at financial criteria, the cash purchase is always more favorable than financing due to the savings in interest paid in operations that in most cases exceed 4-5 years.

” The fact of paying in cash and forgetting to pay installments every month “generates less commercial connection with the dealership or company from which the vehicle is purchased. The same would happen if it is Phone Number Data financed through other means, such as, for example, through traditional banks,” adds the graduate in Business Administration and Management from the Autonomous University of Madrid. The Bank of Spain has recently warned of the lack of transparency in automobile financing. (Photo: Republic of ideas) “Given these circumstances, vehicle marketers seek to attract customers mainly in two ways. The most striking is to offer a lower price if financed than if purchased in cash .



As I have pointed out, not only will the interest end up covering this savings, the most important thing is that a link is created between buyer and seller which means that when the loan runs out and the vehicle is a certain age, its replacement is encouraged ," explains Gallardo Sánchez. Toledo. “Not only that, some financing and acquisition formulas are also directed in that direction. It's not just about renting , which continues to grow strongly, but about financing the purchase of the vehicle with small installments, leaving a very high final value .