Financing a car: loan, leasing or paying cash

Three main options

• Cash or your own savings. The cheapest, but keep a reserve so you don't run out of money after buying.
• Consumer loan. The car is yours from day one, but the bank may register a lien on it until you repay.
• Leasing. The car belongs to the leasing company until you pay the last instalment and, possibly, the residual value. The contract sets the insurance and the terms for taking over the car.

What to compare

• The effective annual interest rate (dobânda anuală efectivă, DAE), the Romanian equivalent of the APR. It includes interest and fees, so it is the main figure for comparing offers.
• The total amount you pay, not just the instalment.
• Administration fees, loan insurance and penalties.
• The terms for early repayment. The law gives you this right.

Your rights

You can withdraw from a consumer credit contract within 14 days of signing. Before signing you must receive the standardised information, so you can compare offers.

Never pay a fee in advance for a loan that is promised without checking your income. It is a common scam.

A lien when buying

If the seller is still paying off a loan on the car, the lien must be removed before re-registration. You check it in the Electronic Archive of Security Interests in Movable Property (AEGRM), and you hand over the money only after it has been removed.

Work out the total cost

On top of the instalment, add RCA (mandatory third-party liability insurance), CASCO (comprehensive insurance), servicing, tyres and the annual tax. You can work out the instalment quickly with the leasing calculator on AutoNinja.