The total cost of the loan corresponds to the difference between the total monthly payments (plus any fixed costs) and the amount of the loan. It will depend in particular on the specific repayment conditions, such as the duration of the loan. So prefer the TEG during the preliminary phase of your research (before having decided, for example, the duration of your loan). To find out more: how to calculate the total cost of a car loan?
Early repayment: avoid PRA (Early Repayment Penalties)
If he wishes, the debtor can repay his car title loans in advance, it is a right of the borrower guaranteed by law. By doing this, you will pay off the outstanding principal without having to pay the rest of the interest. However, strict conditions apply to ensure that you do not incur any penalty during your early repayment: this must in particular be done on an anniversary date of your credit, otherwise you will have to pay the interest that runs until that date.
You will find the exhaustive list of the conditions to be respected for an early repayment without compensation on our dedicated page: how to settle a car loan?
Avoid prepayment penalties on your auto loan.
Auto loan simulation
To help you see more clearly, nothing like simulating your car loan. Our auto loan calculator is free, fast, and does not collect any data on your simulations, it is the best planning tool for your acquisition project.
The loan simulation allows you to assess the amount of your monthly car loan payments and to estimate the feasibility of your project: is your repayment capacity sufficient for a loan of 12, 24 or 36 months? Feel free to play around with the settings to find the solution that suits you best.
The main thing to remember
You now know what are the characteristics, terms and different components of a car loan ; you have found the best rates to finance your project, the insurance of your dreams and you have determined the repayment terms that best suit you thanks to your simulations … but before giving your signature, one more detail: do not worry have by the banks, learn to negotiate your car loan .
Yes. As soon as your repayment capacity is calculated and validated by the lending institution you have selected, you can submit a loan request, with the support of an advisor. This is when you need to negotiate the details of your loan, not after receiving a proposal.
Obtaining a car loan requires meeting certain conditions. You must be solvent and able to assume the monthly payments.
How to negotiate your car loan before taking out it?
Auto credit offers, in general, the lowest interest rate among the various consumer loans. Rightly so, because it is highly competitive.