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Financing a New Car Requires Attention to Deadlines and Rates, Since Every Detail Influences the Total Amount Paid. The Simulation of the New Volkswagen Tera Shows How Installments and Interest Change According to the Time Chosen to Repay the Debt, Revealing Significant Differences Between Short and Long Terms.
In this simulation, the Volkswagen Tera has a price of R$ 99.990. The down payment considered in this simulation was R$ 40.000, with the rest financed.
The calculation started with a term of 36 months and an interest rate of 1.8% per month. It is important to remember that this rate may vary according to the credit score and the bank’s conditions.
Term of 3 Years
In the three-year financing, the installments remained fixed at R$ 2.278.
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The total paid at the end of the period would be R$ 122.031.
Of this amount, R$ 22.041 corresponds to interest, equivalent to 18% of the total disbursed.
This scenario shows that shorter terms result in less interest, despite the higher installments.
Term of 4 Years
By extending the term to 48 months, the installment drops to R$ 1.877, making monthly payments easier.
However, the total cost rises to R$ 130.098.
The interest in this case reaches R$ 30.108, equivalent to 23% of the total paid. This increase happens because a longer time amplifies the incidence of interest on the outstanding balance.
Term of 5 Years
In the financing over 60 months, the monthly installment is R$ 1.643. Despite the reduced amount per month, the total paid reaches R$ 138.594.
The interest sums to R$ 38.604, representing 28% of the total. This confirms that the longer the term, the higher the final cost.
General Comparison
The most important thing is to understand the relationship between term, installment value, and final cost. In three years, the buyer pays less interest but commits more of the monthly budget. In five years, the installment is lighter, but the extra amount spent on interest increases considerably.
| Term | Installment (R$) | Total Paid (R$) | Interest (R$) | Interest (%) |
|---|---|---|---|---|
| 36 months | 2.278 | 122.031 | 22.041 | 18% |
| 48 months | 1.877 | 130.098 | 30.108 | 23% |
| 60 months | 1.643 | 138.594 | 38.604 | 28% |
Strategies to Save
Therefore, before closing the contract, it is worth doing simulations to identify the best relationship between installment and total cost. In addition, it is possible to reduce the final amount through amortization, which means making early payments to decrease the outstanding balance.
When the buyer amortizes, they stop paying interest on the paid portion because the calculation is made only on the remaining amount. This practice helps shorten the term and save on the total disbursed.
In the financing of the Volkswagen Tera, the chosen term completely changes the final amount paid. A shorter term means higher installments but less interest. A longer term brings lower installments but a higher total cost. The decision should consider the available budget and the ability to make early payments to avoid excessive interest.
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