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 credit

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

The amount of the monthly installment you will have to pay for this loan will depend on the specifics of the car, as well as the down payment you make upfront.

So, you can previously simulate the car loan, considering the value of the car compared to the amount you will be able to pay off right away, to understand the amount you will need for the loan.

Therefore, you can understand your effort rate and whether you have the ability to keep paying the car loan 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 35% to 40% already being high and over 40% very high. For example, if your income corresponds to 1,800 euros per month, already have a housing credit of 600 euros, and 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 loan 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 the more you will pay 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 over one year, and 0.25% if the remaining period is one year or less.

Choose the right credit proposal.

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

In order to analyze the proposal that is most beneficial for you, look at the Standard European Consumer Credit Information (SECCI), 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 have to do this procedure alone: A credit intermediary can help you compare and make the best decision regarding your car loan. The services of the intermediaries at Poupança no Minuto are free and 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 implies hiring mandatory insurance: automobile liability insurance.

This insurance covers the payment of compensations for bodily and material damages caused to third parties and passengers, excluding the driver of the car. But additional optional coverages can be added to the insurance, such as driver's damages and roadside assistance.

It is also possible to take out comprehensive insurance, also known as "all-risk insurance", which covers damages suffered by the vehicle of the person responsible for the accident.

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

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

I already have credit and insurance, what now?

After hiring the automobile credit and mandatory insurance, the expenses with a car do not stop there.

In addition to the initial expenses, you should consider the costs of maintaining the car in the budget.

So, point out 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 automobile registry office.
Single Circulation Tax (IUC), to be paid annually in the month of registration.

Contract credit? Subscribe insurance? The agents of Savings in a Minute can handle it all! Do your simulation now and guarantee constant support until you have the key to your car in hand.

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