Ok, so you’re thinking about buying a new car. That’s awesome news! Let’s see how we can help. 😊

Whether you’ve got your eye on a hybrid or an electric, an automatic or a six‑speed manual. Whether you want 4x4 or not, you still need to think about how you’ll pay for it. And if you’ve already decided on paying in instalments, we’ve got a few options for you.

Car loan, personal loan or leasing? If you’re not quite sure about the differences and the pros of each, we’ll break it down — and you pick what fits you best.

Who owns the car?

Ownership is actually the key difference between these three financial products. With leasing, the vehicle is owned by the leasing company from the start to the end of the contract, and you’re its user, so you get the right to use the car. In other words, you’re essentially renting the car during the lease term and, at the end, if it’s been a good match, you can choose one of the following: buy it, extend the lease, or return it and skip the residual value payment.

❗ Tips&Tricks: If you’re thinking of returning the car, the upside is you can switch to a different one more easily as your long‑term needs change 😊. You hand it back and pick another that fits your style.

With loans, things are even simpler. Whether it’s a car loan or a personal loan, you own the car from day one when you sign, and you repay the loan in monthly instalments.

Do I need a down payment?

Since we’re talking money, we hope you’ve set a little aside, because for a finance lease the down payment starts at a minimum 20% of the car’s total value. Don’t worry though — think of it as an investment for a simple reason: it lowers the amount you’ll be paying interest on. Yes, it’s a bit tougher upfront, but it pays off over the long run.

For a car loan the down payment is lower, though not by much, as the minimum is 15% of the total amount of the loan requested — with the benefit that you can pay it directly to the seller.

Clearly, for the two options above it helps to save ahead of time, but if you’re in a hurry and don’t want to wait to build up the amount, there’s another option for you: a personal loan. Pssst! It comes with zero down!

And what if I want to repay early?

Then it’s good to look at early repayment. Early repayment works differently depending on the product you choose. With a car lease, you can make partial early repayments whenever you want, but for full early settlement you need to wait 12 months from the contract start date.

With a loan, early repayment is always within reach — just make sure you have the funds in your account and no overdue payments. And don’t forget to let us know you want to close your loan: drop by any of our branches and fill in an early repayment request. We’ll process it swiftly and in a few days you’re done with the loan.

We all need insurance, right?

Absolutely! That’s why it’s important to know from the outset that the leasing company will arrange insurance by taking out CASCO and RCA policies. Even though you’ll bear the insurance cost, the big advantage is you’ll benefit from the leasing company’s preferential rates, so you’ll end up paying less in the end. 

With loan products, it’s good to know that for a car loan the car must be insured full CASCO, because the vehicle, together with the policy, becomes collateral for the entire loan term.

With a personal loan it’s even simpler. By law you’re only required to have RCA, but it would be a shame not to fully insure your new purchase, wouldn’t it? 😉

How soon can I get the car?

In no time, if it’s leasing. The approval process takes up to 2 days, and then you can come pick up the car 🚗.

With a car loan, things get a bit more involved: even if approval itself is quick, the admin kicks in — steps like taking out the CASCO policy, registering a lien on the car, and transferring the money to the seller.

A personal loan may surprise you here. It’s so fast you can find the money in your account in just a few days, and then you can use your funds however you want. 

Whatever financial product suits you best, it helps to get the full picture — so don’t forget to run the numbers. Here are the calculators for the car loan, personal loan and leasing.

We wish you every success in choosing the perfect car for you — and if it’s about financing, we’re here to support you!

Editor: Mihaela Ban, Communication & PR Officer, Banca Transilvania