How much will I spend on buying a car?

Car and insurance credit? You've come to the right place. The credit intermediaries and insurance brokers at Poupança no Minuto can guarantee the best proposals with the best conditions for you. But first understand how these products work.

First: Expenses with car loan

If you do not buy the car with the full amount, you will need to take out a car loan in order to acquire it. For this, you must take into account this expense in the monthly budget in the following years.  

The value of the monthly installment you will have to settle for this loan will depend on the specifics of the car, as well as the down payment you make initially.

So, you can pre-preform a simulation of car credit, taking into account the value of the car compared to the value you will be able to pay off immediately, to understand how much money you will need for the credit.  

Therefore, you can perceive your effort rate and whether you are able to keep up with car loan payments or not. The effort rate represents the ratio between your income and your credit installments.

The effort rate should ideally be up to 34%, with between 35% and 40% already being high and over 40% very high. For example, if your income corresponds to 1,800 euros per month, you already have a mortgage credit of 600 euros, and you want to take out a car loan of 200 euros, your effort rate will be 40%. So, in this case, it is likely that your credit will be approved, but it will depend on the bank and other factors that it analyzes.

Also, the repayment term of the credit will influence the amount you pay monthly and in total of the financing. This is because, the longer the term, the less you pay per month, but you will pay more for the total credit due to interest. Note that you can repay the credit in advance, in part or in full, subject to a commission.

The early repayment fee is 0.5% if the credit period is more than one year, and 0.25% if the remaining period is equal to or less than one year.

Choose the right credit proposal.

If you are looking for a car loan, note that you should request several simulations from different banks to have access to the best proposal.

In order to analyze the most beneficial proposal for you, look at the European Standardized Information Sheet (ESIS), which describes the conditions and characteristics of the loan, and to compare proposals, analyze the Annual Percentage Rate (APR), which indicates the total cost of credit.

But you don't need to do this procedure alone: A credit intermediary can help you compare and make the best decision regarding your car loan. The services of Poupança no Minuto's intermediary agents are free, and they ensure constant support so that you have access to the best credit conditions.

The car also needs to be insured.

The purchase of a car also involves the hiring of mandatory insurance: automotive civil liability insurance.  

This insurance covers the payment of compensation for bodily and material damages caused to third parties and transported persons, excluding the driver of the car. But you can add optional coverage to the insurance, such as driver's damages and travel assistance.

You can also take out comprehensive insurance, also known as "all risks insurance", which covers the damages suffered by the owner's vehicle in the accident.

Note that if you hire insurance with a deductible, the insurance will only cover damages that are valued higher than the agreed amount.

If the person responsible for an accident does not have valid mandatory insurance, one can turn to the Automobile Guarantee Fund which, if the legal requirements are met, covers the payment of compensation.

I already have credit and insurance, what now?  

After hiring car credit and mandatory insurance, expenses with a car do not end there.  

In addition to the initial expenses, you should consider the charges for the maintenance of the car in the budget.

So, list the following expenses you will have as a car owner:  

• Credit and insurance installments;  
• Cost with periodic inspections, revisions and repairs.
• Payment of fee at the car registration office.  
• Single Circulation Tax (IUC), to be paid annually in the month of registration.  

Need credit? Subscribe to insurance? The agents of Poupança no Minuto can take care of everything! Contact us and guarantee constant support until you have the key to your car in hand.