It’s inevitable! There comes a time in life when you think: “I need to buy a good car”. Check out 4 tips to make a good vehicle financing.Financing is a type of term purchase offered by banks and financial institutions for those who cannot purchase the vehicle in cash or prefer to leave the money invested.
Types of vehicle financing
Direct Consumer Credit
Through the DCC, the consumer takes out a loan at a bank to buy the car. The vehicle is in the possession of the buyer, but cannot be negotiated, as it is sold to the bank, until all installments are paid. Contact can be made directly with the bank, without the concessionaire’s interference.That 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 installments.
In this type, the car is not owned by the consumer, but by a company that rents the vehicle. The rental fee is the installment of the car, after the end of installments, the vehicle passes to the consumer’s name.This makes it possible to negotiate directly in relation to interest rates, which are fixed at the beginning of the contract and do not change over the payment period.
The consortium is an option for those who are in no hurry. The customer pays the installments and only purchases the car when it is drawn. In this situation, unlike DCC and leasing, installments are subject to change over the period of payment, according to the variation in the price of the car to be purchased.
In the current scenario, financial institutions are encouraged to expedite the release of credit to attract consumers. Before deciding, take the following tips into account:
1. Without finances in place, no car
It is necessary to keep in mind what your payment power for a parcel is. So, from there it is a lot of research: looking for prices, conditions both in stores and in banks and not closing deals in the first place.
2. Pay attention to the TEC
The consumer must pay attention to the Total Effective Cost (TEC) of the financing, which shows the rates included, in addition to the interest, Financial Operations Tax (FOT), registration fee and insurance.There are significant variations for the same car model.Use tools available on the internet that can help you compare financing and research TEC a lot. The smaller, the more affordable the amount you will pay for the car.
4. Save for entry
When opting for financing, make a good reservation capable of guaranteeing the largest possible entry. The higher, the better the chances of negotiating discounts and facilities on installments.
5. Extra costs
When assuming a loan, analyze all expenses with the new acquisition. That’s because there are other costs involved in maintaining a car. You might need to buy fuel cards like those provided by iCompario, routine services and so on. You need to consider all.
In addition to the provision, take into account, for example, the Motor Vehicle Tax, insurance, fuel and eventual repairs such as the revisions provided for in the car manual and which are mandatory for the warranty to be valid.
Conditions in the main banks
Some banks have reduced rates for credit contraction. The minimum rate usually varies according to the customer’s relationship with the bank, year of manufacture of the vehicle, percentage of entry and financing term. Depending on the customer’s profile, approval is immediate.
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