Index
The difference between monthly instalment and real cost
Total cost table according to amount, term and APR
How much interest costs in euros depending on the scenario
What commissions and additional expenses can add to the cost
How much can be saved by negotiating the APR
The cost of extending the term to lower the instalment
How to reduce the total cost of financing
Dealcar: sell your current car and finance less
FAQs
The difference between monthly instalment and real cost
When someone asks how much it costs to finance a car, they are almost always thinking of the monthly instalment. But the monthly instalment only tells you how much you pay each month, not how much you pay in total.
The real cost of financing a car is the difference between the total you end up paying and the original price of the vehicle. This difference is the interest, and it can range from a few hundred euros to several thousand depending on the amount, the term and the APR.
A straightforward example: finance a car of €15,000 over 60 months with an APR of 7%. The monthly instalment is €297, which seems affordable. But at the end of the 60 months, you will have paid €17,820. The car will have cost you €2,820 more than the marked price. That is the real cost of financing.
Knowing this number before signing is what allows you to truly compare offers and decide if the term, amount and conditions make sense for your situation.
To understand exactly what the APR includes and what it doesn't, the article about what is NIR and APR explains it with concrete examples.
Total cost table according to amount, term and APR
This table shows the total cost of interest in euros for the most common amounts and terms in the Spanish market of 2026, with three APR scenarios: 5% (competitive bank offer), 7% (average market) and 10% (dealership financing without a campaign).
Amount financed: €10,000
Term | 5% APR | 7% APR | 10% APR |
|---|---|---|---|
36 months | €789 | €1,114 | €1,616 |
48 months | €1,049 | €1,490 | €2,179 |
60 months | €1,323 | €1,880 | €2,748 |
72 months | €1,593 | €2,282 | €3,353 |
Amount financed: €15,000
Term | 5% APR | 7% APR | 10% APR |
|---|---|---|---|
36 months | €1,183 | €1,671 | €2,424 |
48 months | €1,573 | €2,235 | €3,268 |
60 months | €1,985 | €2,820 | €4,122 |
72 months | €2,390 | €3,423 | €5,030 |
Amount financed: €20,000
Term | 5% APR | 7% APR | 10% APR |
|---|---|---|---|
36 months | €1,578 | €2,228 | €3,232 |
48 months | €2,097 | €2,980 | €4,358 |
60 months | €2,647 | €3,760 | €5,496 |
72 months | €3,187 | €4,564 | €6,707 |
Amount financed: €30,000
Term | 5% APR | 7% APR | 10% APR |
|---|---|---|---|
48 months | €3,146 | €4,470 | €6,537 |
60 months | €3,970 | €5,640 | €8,244 |
72 months | €4,780 | €6,846 | €10,060 |
84 months | €5,618 | €8,088 | €11,951 |
How much interest costs in euros depending on the scenario
To make the numbers more tangible, here are three scenarios representative of the Spanish market in 2026:
Scenario 1: mid-range second-hand car Amount financed: €12,000. Term: 48 months. Competitive bank APR: 5.5%. Monthly instalment: €280. Total paid: €13,440. Cost of financing: €1,440.
Scenario 2: mid-range new car, dealership financing without campaign Amount financed: €20,000. Term: 60 months. APR: 9.5%. Monthly instalment: €419. Total paid: €25,140. Cost of financing: €5,140.
Scenario 3: new SUV, bank financing Amount financed: €29,990. Term: 72 months. APR: 6.5%. Monthly instalment: €505. Total paid: €36,360. Cost of financing: €6,370.
The difference between scenario 2 and the same car with an APR of 6.5% is more than €2,000 in favour of the bank. That's €2,000 lost by not comparing before signing.
What commissions and additional expenses can add to the cost
The cost of financing a car is not always limited to interest. Depending on the entity and the conditions of the contract, additional costs may appear that raise the total:
Arrangement or application fee. Some entities charge between 0.5% and 2% of the financed capital at the start of the operation. For €15,000 financed, that is between €75 and €300 added to the total cost from day one. The trend in 2026 is that online banks and digital financial institutions apply a 0% commission, while traditional banks and dealership financial institutions still maintain it in many cases.
Mandatory linked insurance. Payment protection insurance (which covers the instalments in case of unemployment or disability) can cost between €10 and €20 per month. Over 60 months, that is between €600 and €1,200 in additional costs that are not always reflected in the APR if they are not strictly mandatory to obtain the advertised rate.
Early cancellation fee. If you pay off the loan before the end of the term, the entity can charge up to 0.5% of the outstanding capital if there are more than 12 months left, or 0.25% if there are less. This is a cost that only applies if you cancel early, but it is worth knowing when signing.
If you have savings available, the article on financing a car or paying in cash helps to calculate whether it is more worthwhile to pay in full or to finance and cancel early.
The APR includes mandatory expenses but not always linked insurance if it is not an explicit condition of the contract. Therefore, it is advisable to request the full breakdown of all associated costs before signing, not just the APR.
How much can be saved by negotiating the APR
The APR is the parameter where there is the most room for negotiation. Lowering the APR by one point in a 60-month financing agreement can mean between €500 and €1,500 in savings depending on the amount.
For a car of €20,000 over 60 months, the difference between an APR of 7% and one of 5% is exactly €1,113 in total interest. To achieve this improvement, you don't always need to negotiate aggressively: in many cases, it is enough to compare two or three entities and bring the bank's offer to the dealership so they can match or improve it.
In 2026, the best offers in the banking market for car loans start from an APR of 4.54% (Bankintercard, according to Rankia data from July 2026) for profiles with a good credit history and no prior debts. This figure is very far from the 9-10% applied by dealership financing without a campaign.
In many cases, it is enough to compare two or three entities. The article on bank or dealership to finance a car explains how to do it and what traps to avoid.
The cost of extending the term to lower the instalment
Extending the term is the most common lever used to reduce the monthly instalment, but it has a direct cost in total interest that many buyers do not calculate before deciding.
For €15,000 financed at an APR of 7%:
Term | Monthly instalment | Total paid | Interest cost |
|---|---|---|---|
36 months | 463€ | €16,671 | €1,671 |
48 months | 358€ | €17,235 | €2,235 |
60 months | 297€ | €17,820 | €2,820 |
72 months | 256€ | €18,423 | €3,423 |
Going from 36 to 72 months reduces the instalment by €207 per month, but adds €1,752 to the total cost of financing. The lower instalment always comes with a price.
The general recommendation is not to extend the term beyond what is necessary to keep the instalment comfortable. If you can afford €350 per month without any problem, a 48-month term is better than 60, even if the difference in instalment is only €50-60.
Before deciding on the term, it is useful to know how much you can finance based on your salary so you do not commit to an instalment that does not fit your budget.
How to reduce the total cost of financing
With the data from the previous tables, it is easy to identify the three levers that have the greatest impact:
Provide a larger deposit. Reducing the capital to be financed is the most direct way to reduce interest. Going from financing €20,000 to financing €15,000 (with a €5,000 deposit) saves between €1,000 and €1,700 in interest depending on the term and the APR. If you have a current car, tasarlo y venderlo antes de comprar el nuevo will generate that deposit without touching your savings.
Get the lowest possible APR. Comparing bank and dealership, bringing an already approved offer to the negotiation and taking advantage of manufacturer campaigns are the most effective ways to reduce the APR. The difference between 5% and 9% over 60 months can be more than €2,500 for a €20,000 car.
Do not extend the term unnecessarily. If you can afford the 48-month instalment, do not sign for 60. If you can afford the 60-month instalment, do not sign for 72. Each additional year of the term adds hundreds of euros to the total cost.
Dealcar: sell your current car and finance less
The deposit you provide when buying the new car directly determines how much you have to finance and, therefore, how much the interest will cost you. Every additional €1,000 of deposit translates into between €70 and €130 of savings in total interest over 60 months, depending on the APR.
If you have a current car, selling it before buying the new one is the most direct way to increase that deposit. With Dealcar, your car reaches more than 1,000 verified professional dealerships competing for it. You receive the offer in less than 18 hours, get paid before handing over the car, and home collection is included.
100% free for you. No commissions or hidden costs.
You get paid before handing over the keys. Bank transfer before the car changes hands.
They collect the car from your home. No travel required.
No paperwork. The buyer handles the transfer, DGT, and all the paperwork.
On average, 1,400 euros more than selling on Wallapop.
More than 12,000 cars sold and an average rating of 4.9 out of 5.
FAQs
How much does it cost on average to finance a car in Spain in 2026?
It depends on the amount and the term. For a car of €15,000 over 60 months, the interest cost ranges from about €1,985 with an APR of 5% up to €4,122 with an APR of 10%. The average market APR for standard profiles in 2026 is between 6% and 8%.
How much will my interest increase if I extend the term from 48 to 60 months?
For €15,000 at an APR of 7%, going from 48 to 60 months adds €585 to the total cost in interest. The instalment drops by €61 per month, but the car ends up €585 more expensive.
Does car financing have an arrangement fee?
It depends on the entity. Online banks and digital financial institutions mostly apply a 0% commission in 2026. Traditional banks and dealership financial institutions can charge between 0.5% and 2% of the financed capital. Checking this before signing can lead to savings of several hundred euros.
Can I cancel the financing before the term to save on interest?
Yes. The law allows early cancellation with a maximum fee of 0.5% of the outstanding capital if there are more than 12 months left, or 0.25% if there are less. If you receive extra money (sale of the previous car, bonus, inheritance), calculating the savings in interest compared to the cancellation fee usually yields a positive result in most cases.
What is the lowest APR to finance a car in 2026?
The best offers in the banking market in July 2026 start from an APR of 4.54% (Bankintercard) for profiles with a good history and no prior debts. For more complex profiles or those without a history, the minimum real APR rises to 6-7%.
