In this article, we discuss some Car Finance Tips To Get Approval. Used car sales have started to pick up steam in Brazil, according to data released by the National Federation of Automotive Vehicle Dealers Associations (Fenauto).
The survey points to an increase of 6.5% throughout 2017, compared to the previous year. Also according to the organization, in the first half of this year alone, more than 5.1 million cars were traded in the country, a result almost five times higher than the number of brand new vehicles. Apply For Car Finance
The heating of this market, in tow, increased the number of vehicle transactions through financing: 1,530,851 units were acquired through this type of business between the last months of January and July, compared to 1,452,348 units in the same period of the last year.
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These data, from the B3 financial capital stock exchange (Brazil, Stock Exchange and Over-the-Counter), point to a growth of 5.4% in the number of vehicle financing. If you are thinking about expanding these numbers even further and purchasing a used car on term, it is worth following five tips formulated by AutoPapo , based on information from Volanty, a company specializing in the sale of used vehicles. After all, getting a loan is not always as easy as it sounds. Check out:
Vehicle Financing: See 5 Tips to Get Approval
1. Income power determines the effectiveness of the financing
The buyer’s income power is a big influencer for the approval of a car purchase. In other words, the more guarantees there is about the buyer’s monthly income, the greater the chance of obtaining financing.
2. Cheaper goods have a greater chance of approval
The value of the good is also a determining factor: the chances of having the name approved to purchase a more popular vehicle, with a price of up to R$ 40 thousand, are greater. A matter of logic, after all, in order to acquire a cheaper car, the consumer will incur less debt.
3. Vehicle brand influences financing approval
Cars from brands such as Volkswagen, Fiat, Ford and Chevrolet are the best sellers in financing. This is because these companies are well known, offer affordable vehicles and are consolidated in the Brazilian market. On the other hand, banks often do not accept financing for imported cars from companies like JAC, Lifan and Chery. The reason is that these manufacturers’ vehicles usually have parts that are difficult to find in Brazil, which increases the cost for the owner.
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4. Vehicle insurance is a guarantee for banks
If the asset is uninsured, the chances of obtaining approval for the purchase are lower: after all, if it is stolen, the chance of the taxpayer continuing to pay is reduced. Banks take this factor into account precisely to reduce the risk of losses with debtors.
5. Documentation and compatible income are essential
It is important that the consumer has their income reports up to date. If possible, it is convenient to prove that the value of the income is at least twice the amount to be financed. Another important point is to have an amount of at least 20% of the down payment. Read More