How to get vehicle financing at the bank is necessary to comply with some rules. Perhaps it is one of the most searched questions on the internet, well, today we bring you an article that will solve your doubts in this regard.
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, which can be carried out with or without reservation of ownership.
It is very important to emphasize 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, 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 borrower from day one.
How to apply for car finance for the purchase of a used car?
Normally, banks do not extend car loans with reservation of title to buy used cars, 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 car purposes, and it is even possible to buy used cars with full financing (therefore, without the need for an initial entry or equity capital).
Given the high value that a vehicle can cost, car credit turns out to be 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 that can be obtained on the market) it is essential to simulate in 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 amounts, simply indicating the amount you want.
Let's go to some basic information that will help you.
When you choose the best car loan, it is important that you read the contract's minimum issues.
That is, when applying for vehicle financing, the effort rate must be considered, which indicates the percentage of the holder's monthly income that is allocated to the payment of loan charges.
Finally, when you review your credit application, the bank will take this indicator into account.
What are the advantages and disadvantages of applying for a used car loan?
Starting with the pros of bank loans to buy used cars, it should be noted right away that banks finance 100% . And it doesn't stop there, moreover, if the consumer wishes to sell the car in the meantime, he can do so without major setbacks, since there is no reservation of ownership by the bank – the car belongs to the debtor from day one.
Vehicle financing is one of the easiest to acquire, as long as the consumer has a good track record of complying with other loans and an acceptable effort rate. It should also be noted, within the scope of advantages, that there is a wide range of payment terms for buying cars on installments, the customer being able to choose the repayment period that least harms his personal budget.
We need to talk about the cons.
There is no asset to give the bank as a guarantee (contrary to what happens in car loans with reservation of title, in which the bank keeps the car in case of default), it is natural that interest rates are a little higher.
How to apply for financing online?
You can do an online simulation on more reliable sites such as Bank of Brazil or for anyone who is a customer of Savings Bank, even better.
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