To get vehicle financing from a bank, you need to follow some rules. This is perhaps one of the most searched questions on the internet, so today we have brought you an article that will answer your questions about this.
In general terms, we can say that car credit is a type of financing intended for the acquisition of a vehicle, whether new or used, and can be carried out with or without reservation of ownership.
It is very important to highlight here that through car credit with retention of title, the bank or financial institution that grants the loan registers a right over the car at the Registry Office, which allows it to keep it if the debtor defaults.
On the other hand, if the loan is taken out without reservation of ownership, the vehicle belongs to the debtor from day one.
How to apply for car financing to buy a used car?
Banks do not usually grant car loans with reservation of title to buy used cars, this is because it is generally difficult to assess the real market value of second-hand cars (this is a risk that financial institutions prefer not to take).
The alternative left to the consumer is personal credit for automobile purposes, and it is even possible to buy used cars with full financing (therefore, without the need for an initial deposit or own capital).
Given the high cost of a vehicle, car loans are often the only way for many consumers to purchase the car they want. To save on financing (and ensure that interest rates are the most favorable available on the market), it is essential to simulate with several banks and carefully compare the monthly installment and the total amount charged to the consumer in each solution –
The ComparaJá.pt car loan simulator provides these values, simply by indicating the amount you want.
Let's go over some basic information that will help you.
When choosing the best car loan, it is important that you read the minimum requirements of the contract.
That is, when applying for vehicle financing, the effort rate must be taken into account, which indicates the percentage of the holder's monthly income that is allocated to paying loan charges.
Finally, when you analyze your credit application, the bank will take this indicator into consideration.
What are the advantages and disadvantages of applying for a used car loan?
Starting with the advantages of bank loans to buy used cars, it is worth noting that banks finance 100%. And it doesn't stop there. Furthermore, if the consumer wishes to sell the car in the meantime, they can do so without any major problems, since there is no retention of ownership by the bank – the car belongs to the debtor from day one.
Vehicle financing is one of the easiest to obtain, as long as the consumer has a good track record of fulfilling other loans and an acceptable effort rate. It is also important to mention, within the scope of the advantages, that there is a wide range of payment terms for buying cars in installments, and the customer can choose the repayment period that least affects their personal budget.
We need to talk about the cons.
There is no asset to give as collateral to the bank (contrary to what happens in car loans with retention of title, in which the bank keeps the car in the event of default), it is natural that interest rates are a slightly higher.
How to apply for financing online?
You can do an online simulation on more reliable websites such as Bank of Brazil or for anyone who is a customer of Savings Bank, even better.
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