What kind of APR (todellinen vuosikorko) is acceptable for a second hand car purchase under 5000 euro from dealership? This is my first time buying car here.
Edit:
One more question. How are dealership insurance so much cheaper than getting insurance from a insurance company? for example [kamux ](https://www.kamux.fi/kamux-kasko)has 399e/year insurance, whereas i get 600-800 quoting from IF, OP, etc insurance provider
by itimic7
3 comments
What you can get is acceptable. 3-7%
I have done such a loan agreement twice in my life. Both times the interest rate was 1% fixed, and then the real annual interest gets minor invoicing charges on top.
Right now in this “interest rate climate” probably around 3% is the best to hope for. Rates may go down in less than a year tho: so agreeing to a deal that uses 6m euribor or such as the basis may be all right too
If you’re buying a car under 5000€, you shouldn’t buy it with a loan in the first place. Settle for something you can buy with the money you have, or can raise some other way.
No matter the interest, a car that costs 5000€ or less is going to anyway cost so much in maintenance, taxes, and fuel that you’d do better to buy an even cheaper one and not have to fork over the downpayments and interest, too.
Source: have never owned a car worth more than 5000€, but have owned six different cars.