Talk Quesada forum

Could someone please explain how car financing works in Spain. I often see cars advertised with a financed price and a cash price and in my price range the difference seems to be around 1000 euros.
I get that interest charged will play a part and possibly commision payments for introducing a new client to the finance company.

Could I purchase a car on finance and then settle the finance within 1 month and pocket the 1000euros less 1 months interest?

Regards
Neil

No because there will be a clause in the conditions that you pay for a certain time
Most car finance in spain is leasing not hire purchase

We bought a new Skoda Octavia using VW finance which was offered to us, we received 2,000 off the purchase price for doing so which made it worthwhile. You can't repay early without incurring a penalty.

You have to wait 12 months before you pay it off, then there is a 1% surcharge on the outstanding loan.

Thanks for your replies but now for the next bit.

I see a car advertised at 10k euros for cash and 9k euros if financed. I assume then that the dealer gets the 9k if financed plus I pay interest on top of that to the finance company. So the dealer is getting a back hander from the finance company to the tune of 1k to make up the difference for his loss.

Begs the question what are the interest rates being charged. Only asking as a point of interest. I dont do finance, cash only for everything. Its against my religion (Yorkshireman) to pay interest .