Many people dream of having the own car, after all, nothing compares with the freedom and comfort of going anywhere without having to depend on anyone.
However, when investing in a car, many doubts may arise in the mind, such as: “Is it still worth investing in a car loan?”
Is not it?
After all, many Brazilians are afraid of getting involved in debt and paying very high interest rates. However, it is important to emphasize that each situation is different…
Therefore, it is necessary to analyze all factors separately.
If you still have doubts about the best option when buying a car, know that you are in the right place…
Because here we will help you clarify this doubt that is very common for many people.
After all, what is a car loan?
Let's start from the beginning, shall we?!
So let's go...
Car financing basically works as a credit that is granted by banks or finance companies so that people can borrow money to buy a car.
However, the bank pays the company selling the car, and you owe the bank.
That way, you will pay directly to the bank through installments.
Therefore, your debt is directly with the bank and not with the company that is selling the car, understand?
Types of financing
There are practically 3 types of bank financing: Leasing, consortium and CDC (direct consumer credit).
The CDC (Direct Consumer Credit) is one of the main types of credit offered in the market, which consists of the customer taking the amount from the bank and paying in installments.
During the payment of this modality, the car is already in the name of the person who bought the car and contracted the financing.
However, in case of disagreement, that is, if the customer stops paying, the Bank can take the vehicle to sell and pay off the loan.
no longer leasing, during the loan payment, the car will remain in the name of the financial institution that lent the money while the customer pays for the debt.
After paying the debt, the car will be transferred to the name of the customer who bought the car. car.
However, during this payment, the bank may also collect the vehicle in case of disagreement.
But it is important to remember that all procedures are done in a way that can work very well for all parties involved, and all information is clear in the contract.
The other financing modality is through the consortium, where the client does not need to have a clean name…
Just go directly to a consortium company and control yours, however, in this mode the customer only receives the vehicle at the end of the payment of the installments.
That is, after debt settlement.
But to motivate people to carry out this type of financing, normally, contracts offer the possibility for people to receive their vehicles through bids in amounts or through raffles...
Which usually happen once a month.
Is it worth taking out financing?
To conclude, it is necessary to point out that each person will need to assess their financial condition to decide what to do.
Because there are many possibilities, surely at least one will make sense for your conditions and needs.
Do you agree?