Consider the installments or periodical repayments that you can afford. This consideration should include relevant taxes, your other monthly expenses and the car credits provider additional charges if any. It is advisable for this amount not to be beyond a quarter of your monthly after tax income.

The repayment period of the car credit is another factor to consider as this affects the amount of interest you pay, consider these two options. A long term loan will mean smaller installments but a larger overall interest amount will be payable. A short term loan will mean repaying larger amounts of the principal amount but a lesser overall interest will be paid. Read More..