Car financing without a down payment is currently still one of the biggest desires of many Brazilians who dream of the individuality of their own transport.
You really want to buy a car, but you can't save up the money for a down payment. Is it possible to get one? car financing without down payment? Well, it's not always easy, but if you have an impeccable financial history, your chances increase.
We'll help you analyze the pros and cons of financing a car with no down payment so you can figure out if this option is right for you.
How to finance a car without a down payment?
It's not very difficult, but it's also not very easy! If your goal is to buy a new car, but you'd like to do it without a down payment, you'll need to take a few things into consideration.
Normally when you make a financing without deposit, the interest rates are higher, and the installments are also higher, because you have not made any payments to cover these amounts, which means that you will have to prove a higher income to have your financing approved.
However, let's be honest: if you get approved, you can celebrate and walk away with the keys to your new car.
There are currently many financial institutions offering options if you want to finance your car without a down payment, it is worth researching them. official websites and simulate your purchase.
Disadvantages of buying a car without a down payment
The biggest disadvantage of this option, as already mentioned, is that the interest rates are usually high, and the possibility of you ending up paying off your car at the price of two is quite high.
Another difficulty you may encounter is obtaining financing, as banks and financial institutions are wary of financing a vehicle with virtually no guarantees.
Among everything, there is no magic formula to get one car financing without down payment, everything will depend on the credit institution responsible, your good payment history and your income.
So, how does no-down-payment financing work?
Unlike most financing options we're used to seeing on the market, no-down-payment financing allows you to divide the full cost of the car into installments. This means that when you buy a car with no down payment, you don't have to pay anything upfront.
The big advantage of financing with no down payment is that you can access the vehicle without having to wait a while to build up a cash reserve. In other words, you don't need to have money saved to drive the car home from the dealership.
For some, this financing can be a wonderful thing. For example, if you need the car immediately and do not have any financial reserves to make a down payment, this type of financing is a good way to solve this problem.
Where can I safely obtain financing without a down payment?
The safest places: dealerships and vehicle stores
You may have seen some dealerships offering no-down-payment financing. But not many banks offer this type of credit. For dealerships and car dealerships, there's a trick that makes this financing possible.
It is very important to mention here that when it comes to used cars, dealerships pass on to banks a higher value than the car is actually worth, and the excess amount serves as the down payment.
Car financing simulation without down payment
A car costs R$1,400,000.00, but the bank requires at least R$1,51,300.00 as a down payment. In this case, the dealership or dealership informs the bank that the car is worth R$1,400,000.00. The extra amount, R$1,400,000.00, will be used as a down payment. In other words, you didn't actually have to put down a down payment. But to the bank, you made a down payment of R$1,51,300.00.
For this reason, dear Digital Seguro reader, we always say here that it's easier to get this type of financing at a store or dealership than at a bank. This practice is more common when buying used cars, as it's more difficult to value the car in these cases.
On the other hand, it's also important to say that if you're thinking about buying a new car, your best option will probably be to look for a bank.
Banco do Brasil offers financing without down payment,
However, we must point out that it's not easy to obtain. Furthermore, it may not be the best option for you. In the case of Santander, depending on your score, it's also possible to obtain financing with no down payment.
What are the disadvantages? The bank doesn't offer this financing option to everyone. To run the simulation, you need to enter your CPF (Brazilian Individual Taxpayer Registry) and date of birth so they can check your credit score and then offer, or not, financing without a down payment. Bradesco also offers this type of financing for new cars, but as with the others, you need to meet the bank's accepted profile.
At other private banks, it's not possible to finance 100% of the vehicle's value. Most banks require a certain percentage of the down payment. Itaú, for example, requires 101% of the vehicle's value as a down payment.
Who can get financing without a down payment from the bank?
A profile analysis is performed. Not everyone can qualify. Even if the bank offers this type of credit, it doesn't offer it to all customers. Banks are cautious and don't want to take a loss. Therefore, they conduct a thorough profile analysis. For this type of credit to be approved, the customer must have a good credit score.
Is it really worth getting financing?
Financially, it's definitely worth financing. Financing with no down payment isn't the best option for you, but it might be worth it for those who haven't planned ahead. Therefore, it's crucial to be sure you really need the car, not just a whim. If you can postpone the purchase for a few months, do so! Don't burden yourself with debts larger than necessary.
Finally, the best way to save money and buy your vehicle is by comparing. Be sure to visit dealerships and banks to see which one offers the best rates. It's important to compare because rates vary widely. Depending on your situation, you may be able to get better rates from banks or dealerships: