Understand how vehicle financing works.
Buying a vehicle, regardless of model, is a dream come true for many. Vehicle financing allows many people to conquer a new car or even their first car, in this article you will understand how vehicle financing works.
Financing is a kind of installment purchase through a loan. The customer chooses the vehicle and then asks a financial institution to finance it. That is, the institution pays the vehicle value and the customer pays the installments to the financial institution.
A good idea to program for this expense is to consult an online simulator. Therefore, to make a simulation, you will need to know the amount you will receive, the value of the vehicle, the year and model, and how many installments you will pay for it. Remember that, as a general rule, the more benefits you make, the lower the monthly amount will be, but the interest will ultimately be higher.
Vehicle financing systems in the Brazilian market today are Good Consumer Credit (GDC), leasing, consortium.
Good Consumer Credit
Through Good Consumer Credit (GDC), the consumer makes a loan in a bank to buy the car. The vehicle is held by the buyer but cannot be negotiated until all installments are paid. The person can make contact directly with the bank, that is, without intermediation of the car sales shop (dealership). This way you can negotiate the interest rates that will be paid. They are fixed at the beginning of the contract and do not change during the payment of benefits.
For Leasing, who buys the car is the so-called leasing company (a bank that works with this type of service). From then on, this bank rents the vehicle to the consumer. Thus, the customer pays for the rent of the car, which is in the name of the company until the end of the installments.
When the benefits are finalized, the consumer becomes the owner of the car. Contact with these banks can be made without intermediation of the car dealer. This enables direct negotiation regarding interest rates, which are set at the beginning of the contract and do not change over the payment period.
In the Consortium, the consumer is part of a group formed by other buyers, organized by a manager. The customer pays the installments, but only receives the vehicle when it is drawn. Usually once a month a person is contemplated. In addition to the draw, there is the possibility of the consortium bid a bid, which is an advance of installments due.
Therefore, the consortium member that offers the highest value will be the one awarded. In this situation, unlike GDC and leasing, the installments change over the course of the payment, depending on the price variation of the car that will be purchased.
That way, if the price goes up, the share goes up; if the car price decreases (for example, if there is a reduction in IPI (Tax on Industrialized Products), the portion accompanies this reduction. Consortium contracts may be up to 84 months. An administration fee is charged for services). This fee, which is billed on a monthly basis and varies by company.
Did you like the tips? Now that you know how vehicle financing works, apply for it now and realize your dream car.