The level of the interest rate largely determines how high the costs will rise. An interest rate of 6.8% per annum may seem only slightly higher than an interest rate of 6.4% per annum, but this may already save a few tens of euros in interest in the first year on a € 10,000 loan. Over the entire duration of, for example, 5 years, the difference will increase to a few hundred euros. In that regard, it is wise to keep a close eye on the interest rate when you want to take out a car loan.

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Interest rate for your car financing

However, the level of the interest rate is not the only important factor, it is also wise to take into account any additional costs. You can take out the cheapest car loan by looking closely at the Annual Cost Percentage (APR). This is a percentage that the lenders are required to state in order to clarify the percentage of costs that you pay for the credit each year. The level of the interest rate is a large part of this, but it also includes any additional costs that you may not have immediately understood.

Simulate and compare

You can also use the interest rate to perform a car loan simulation. In this way you ensure that you get a picture of the costs over the coming years, or during the entire term. Find out which loan will be most beneficial for you by drawing up a comparison based on the various simulations. Have you found a car loan with a sharper interest rate? Then, thanks to the simulation, you can check whether this cheaper car loan is worthwhile for you to switch or to take out a new loan.


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