Did you know that financing used cars can be as easy as when you own a new car? Most banks offer this service, which may be worth it for those looking for a car with more features and lower price.
Here’s how to finance used cars:
A good idea to plan for this expense and evaluate if it will fit in your pocket, is to consult an online simulator. Here are some options.
In order to make a simulation, you will need to know the amount that will be given, the value of the vehicle, the year and the model and how many installments you intend to pay. Keep in mind that, the general rule, the more benefits you make, the lower the monthly amount, but the higher the interest will be.
That’s why it’s so important to simulate and know what else will be worth to you. In addition, rates may vary by institution, so it is important to simulate multiple sites to know which one offers the best conditions.
Among the financing options for used cars, the most common are Direct Consumer Credit, or CDC, and leasing.
At the CDC, the bank lends the money to buy the car and sets the interest rates that will be applied. The vehicle, despite being its for all intents and purposes, can not be traded until it is removed.
This is because, in the event of a default, the bank can file an action to request the vehicle, which goes to auction and the amount collected will serve to pay the debt and the rest, if any, will be with the buyer.
In the case of leasing, the bank that works with this type of service is the real owner of the car and “leases” the buyer, who pays the installments monthly until reaching the total amount of the financing. When this happens, the vehicle then becomes the property of the customer. If he does not clear the debt, the bank gets the car and he does not receive anything from the amount previously invested.
Note that in both financing options used cars the automobile stands as a kind of guarantee of the bank if you do not pay the debt. For this reason, normally, the newer the car, the lower the interest, since it will be devalued if the bank needs to sell it to clear the debts. This is one of the reasons that make the financing of a used car different from a simple loan.
Basically anyone who has a minimum income can make a used car financing. Most financial institutions do not accept clients named in the Central Credit Protection Service (SCPC) or Serasa.
Before making your financing, the ideal is to join the largest amount possible to give input. Thus, you have a greater chance of negotiating interest and will need to finance a smaller amount, paying smaller installments and in less time.
It is also important to plan ahead so that you have time to research, simulate, and evaluate whether your installments will fit into your budget in the coming months. To do this, use the Duke of Omnium to map out your expenses and plan your budget for this new financial commitment.