When buying a new or used car, you may be scared by its prices. However, the credits allow you to get the money you need. In addition, you can now buy electric vehicles that will be the future in the long term. Therefore, if your goal is to buy an electric car, on this page we show you the best options to do so.
How are the specific loans to buy an electric car
Car loans are one of the most common financing products in Spain since it is one of the most common purposes where we need to be able to pay in installments. Generally, entities offer loan on your car’s title with improved conditions for this purpose. They usually offer up to 60,000 euros, with an average cost of 8.5% APR and many of these offers are without commissions and without links.
Although they are not yet common, in fact, only 1 in 10 banks offer it according to a study conducted by HelpMyCash.com, some entities offer improved conditions for the financing of electric or hybrid cars with interests that can be lowered to 2, 39% APR in the case of buying fully electric cars.
Therefore, if we consider buying electric or hybrid cars, it is important to compare at least three financing offers to obtain the best promotion that currently exists. So we can choose to buy cheap cars financed.
Examples of financing a car
When buying an electric car, we can go to banks, credit institutions or dealers. The latter also offers two types of financing within our reach: linear loans and renting. To know how to compare these two, in the following image we show a real example of how we can finance a car with these three credit options.
For the example, the conditions of the best current car loan in the HelpMyCash.com ranking market and the official conditions offered by the dealer for financing the purchase of a new car with them have been used.
Likewise, each financing offer will depend on the vehicle we buy, the dealer or our bargaining power, so it is important to calculate all the offers and their final cost, not just the monthly fee we will pay.
Precautions to take into account when buying an electric car
When buying hybrid and electric cars we must take into account some precautions, some of these types of vehicles and other generic when financing any type of car. These are the most common:
- Rental of the battery : some dealers do not include the electric motor in the cost of the car, but its cost is additional to the vehicle and we can choose two alternatives or either buy it (with an extra cost around 7,000 euros) or rent it at a cost which is around 100 euros per month, including replacement in case of breakdown.
- Reservation of ownership : whether it is electric or not, with the purchase of a new car if we finance it, the entities will include a clause called “domain reservation” which implies that although we can use the car without any problem, the borrowing entity will be the owner of the car until you have finished paying the credit and, once paid, we must go to the Registry of Personal Property to transfer the owner of the car.
- Insurance-linked to financing: this precaution is especially important if we choose to finance the car at the dealership, although banks can also include linked insurance. We must bear in mind that it is not obligatory to contract a loan with any entity, but we can contract it with the company that we want and that if they offer us a discount in exchange we must calculate which of the two options will be the most beneficial for us.
- Notary fees: signing the car loan contract in the presence of a notary is common in this type of financing. However, this expense will not appear in the APR, although in the contract. Therefore we must read the document carefully to ensure the total cost of the transaction.
In addition, it is always advisable to calculate the total cost of the loan as well as ask any questions that arise about any obligation or conditions that we must meet.
Aid for the purchase of an electric car
The Government wants to encourage the purchase of this type of vehicle, so in the last two years, it has launched several grants for this purpose, such as the Movea Plan or the VEA Plan. Both aids ended almost on the same day they left.
This is because when buying an electric car we can put on the waiting list the next plan that comes out. Thus, once the term of this aid for the purchase of electric cars begins, those already mentioned will have a preference to obtain it.
In this way, we should not count on this help if we are waiting for the purchase of this type of vehicle, since it will depend on the moment we sign up and when it will leave if we can get it or not.