It is true that exchanging car journeys for walking, cycling, hitchhiking or even public transport is more sustainable. However, on a daily basis, it is not always easy to depend only on these alternatives. More than a convenience, having your own vehicle is sometimes a matter of necessity. Wondering how to finance yours while spending less?
With the basic interest rate falling and the default rate stabilized, the granting of credit for vehicle financing broke historical records in 2019. According to the Central Bank, in the first half alone, there was an increase of 19.4% in auto financing for individuals in relation to the same period in 2018. The national context, therefore, is favorable, but it is also essential to analyze your accounts and plan financially for this acquisition.
Is buying your own vehicle in your plans for this year? Want to exchange your car or motorcycle for a new model? Follow below 5 valuable tips to finance your car with the lowest rates and without headaches.
1 – Term purchase modalities
There are basically three ways to purchase vehicles in installments. The most common is through Direct Consumer Credit (CDC), that type of financing usually made by financial institutions where the vehicle is already registered in the buyer’s name from the beginning.
Another option is leasing or leasing, in which the vehicle is “rented” to the user, but registered in the name of the creditor company until the end of the payment and, only then, the user decides whether to buy the car or not. .
On the other hand, for those who do not have an immediate need to use the car or motorcycle, the consortium may be the best alternative, since it is the cheapest option to buy.
Before deciding on one of these modalities, compare values, advantages and disadvantages, according to your priorities, needs and budget.
2 – Consider used cars
In addition, it is clear that a used vehicle costs less than a new one. It is even possible to find used vehicles of superior category and well equipped with prices well below a 0km. And the price devaluation of the used or used car is also less, as well as the expenses with documentation. Therefore, considering buying a new car can be a more advantageous alternative for your pocket.
3 – Pay attention to CET and other costs
The decision between buying a 0 km car or a semi-new car depends on several factors. Many people argue for the purchase of the new car fearing the maintenance expenses that a used one may require. But doing a good research and counting on the evaluation of a mechanic can contribute when making a good deal when buying a new vehicle.
When comparing offers from financial institutions, resellers and creditors, it is not enough to just think about the monthly fees you will have to pay. Zero-fee advertising and other payment facilities can be quite attractive. But one must be aware of several other charges, such as tariffs, taxes, credit registration, etc. Want a good tip? Observe the total effective cost (CET) charged for financing. It is this value that you really need to compare to find out which is the best deal.
On the other hand, it is also necessary to consider other expenses with the new vehicle that should be included in your budget, such as licensing, license plate, IPVA, insurance, fuel, maintenance, etc. Plan your bills so that you can afford to buy and use your new car.
4 – Make a good entrance
To attract the consumer, many sellers offer ridiculous amounts of money. But this is not the best deal to do. Those who invest little in the entry end up having to commit to a longer financing and / or with larger installments. That is, the debt increases and, in some cases, the final value may end up being twice the price of the vehicle.
The ideal is to save to be able to give a good value of entry. Thus, you already provide a greater payment guarantee for the financial institution or reseller and gain negotiating power. The bigger the entry, the more chances you will get a shorter financing and with more affordable installments.
5 – Where to find lower interest rates?
Spending time researching and comparing offers is one of the main tips for spending less when financing your car. And it is worth including in this comparison the conditions offered by financial cooperatives.
With financial products and services similar to those of ordinary banks, financial (or credit) cooperatives also offer automotive financing lines. But in cooperatives you can find much lower interest rates, since these institutions are not aimed at profit, but at the benefit of all their members.