Car financing with no down payment is currently still one of the greatest desires of many Brazilian men and women who dream of the individuality of their own transport.
You really want to buy a car, but you can't gather the amount to make a down payment. Is it possible to get a no down payment car finance? Well, it's not always easy, but if you have an impeccable financial history your chances increase.
Let us help you analyze the pros and cons of financing a car with no down payment so you can find out if this option is for you.
How to get a car loan with no down payment?
It's not very difficult, at the same time it's not very easy! If your goal is to buy a brand new car, but you would like to do it without a down payment, you will have to take a few things into consideration.
Usually when you make a no down financing, interest rates are higher, and so are the installments, because you have not made any payments to reduce these amounts, which means that you will have to prove a higher income to have your financing approved.
However, let the truth be told here: if you get approval, you can already celebrate and leave with the keys to your new car.
Currently, there are many finance companies with options if you want to finance your car with no down payment, it is worth taking a look at the official websites and make a simulation of 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 in the amount of two is quite high.
Another difficulty you may encounter is the release of financing, as banks and finance companies are afraid to finance a vehicle, with virtually no guarantee.
Of all, there is no magic formula to get a no down payment car finance, it will all depend on the responsible credit institution, your credit history and your income.
After all, how does no-entry financing work?
Unlike most financing that we are used to seeing on the market, financing without a down payment allows you to divide the full value of the car into installments. Which means that when you buy the car with no down payment, you don't have to pay any money up front.
The great advantage of taking out a loan without a down payment is being able to access the vehicle without having to wait some time to accumulate a financial reserve. That is, you don't need to have money saved to leave with the car from the dealership.
For some, this finance can be a boon. For example, if you need the car immediately and does not have any financial reserve to give down, this type of financing is a good way to solve this problem.
Where to make a loan without a down payment safely?
The safest places: Dealerships and Vehicle Stores
Perhaps you've seen some dealerships offering no-down payment financing. But not many banks offer this type of credit. In the case of dealerships and car stores there is a trick that makes this financing possible.
It is very valid to say here that when it comes to used cars, dealerships pass to the banks a higher value than the car is actually worth, and the excess amount serves as the down payment.
No down payment car financing simulation
A car that costs R$30,000.00, however, the bank asks for at least 15% down payment. In this case, the store or dealership informs the bank that the car is worth R$35,000.00. The extra amount, R$5,000.00, will be used as input. That is, you didn't actually have to make a down payment. But, to the bank, you made an entry of 15%.
For this reason, dear Digital Seguro readers, we always say here that it is 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 in this case it is more difficult to value the car.
On the other hand, it is also important to say that if you are thinking of buying a new car, probably your best option will be to look for a bank.
Banco do Brasil provides financing without down payment,
However, we must say that it is not easy to achieve. Also it might not be the best option for you. In the case of Santander, depending on your score, it is also possible to finance without entry.
What disadvantages? The bank does not offer this type of financing to everyone. To do the simulation, you need to enter your CPF and your date of birth so that, in this way, they can check your score and thus offer, or not, the financing without down payment. Bradesco also offers this type of financing if the car is 0 km, but as with the others, it is necessary to have the profile accepted by the bank.
In other private banks, it is not possible to finance 100% of the value of the vehicle. Most banks ask for some down payment. Itaú, for example, requires 10% of the vehicle's value at the entrance.
Who can finance without a bank down payment?
A profile analysis is performed. It's not just anyone who can. Even if the bank works with this type of credit, it does not offer this financing to all customers. Banks are careful and don't want to take a loss. For this reason, they carry out a careful profile analysis, so for this type of credit to be released, the customer must have a good credit score.
Is it really worth financing?
Economically, it is definitely worth it to finance, financing without down payment is really not the best option for you, however, it may be worth it for those who did not plan. So it's very important to make sure you really need the car, and it's not just a whim. If you can delay the purchase for a few months, do so! Don't compromise your pocket with debts greater than necessary.
Finally, to conclude, the best way to save money and buy your vehicle is to compare. Be sure to visit dealerships and banks, see which institution offers you the best rates. It is important to compare as rates vary greatly. Depending on your case, you can get better rates at banks, or at dealerships:
