Why look at total cost, not just the monthly instalment?

When looking at financing, many people ask one question: what is the monthly instalment? But the instalment alone does not show what you will pay in the end. The total is the sum of everything you repay over the full term, and the difference between that and the amount you received is the real cost of financing.

A longer term lowers the instalment but usually increases the total cost. Compare several terms for the same amount, and look at the amount you will actually pay, not only the number that feels comfortable in the first month.