Key takeaway
Compare the same amount and term, then use total repayment and effective costβnot the advertised rate aloneβto judge the offer.
Identify the calculation basis
Check whether the agreement describes a flat rate, reducing balance or effective rate. During a regulatory transition, confirm the method stated in the actual offer.
Keep the comparison equal
Use the same vehicle price, down payment and term for every offer. Changing any one of them can make a more expensive option look cheaper.
Check the full cash cost
Add deposits, fees and total instalments, then review any early-settlement terms before relying on projected savings.
