Apply For Approving Used Car Financing 2021

Apply For Approving Used Car Financing 2021

In this article we discuss about how we apply for approving used car financing 


If you thought that to get a loan you would just choose the car and take it

documentation, sorry to report, but you thought wrong. Funding is divided into three different stages. See now what they are and how they work. Car Loan

– Direct Consumer Credit (also known as CDC)

It is when the consumer finances directly with the bank. The vehicle is in your name, but it cannot be financed without all installments being paid.

– Leasing

In this case, the bank is buying the car. The customer pays the installments as if it were a rent and after everything has been paid, he effectively becomes the owner of the car.

– Consortium

Group of people interested in  financing used cars  or new (shareholders) contribute monthly by paying a portion intended for the purchase of a good, in this case, a car. When awarded through monthly drawings or bids, you will receive a letter of credit. This letter of credit is a document that entitles you to use its value to purchase a vehicle. If you have not paid all the installments, the vehicle will be guaranteed by the consortium administrator until the end of the contract.

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– Documents required for car financing

The required documentation may change according to the administrative and commercial policies of each bank, but normally the same documentation listing is requested. The tip is: don’t waste time! Go to the bank and find out about the specifications, gather everything and just return with the documents in hand to submit your car financing.

Check out the main documents requested:

– CPF;

– RG;

– Proof of residence;

– Proof of income (from the last 4 months);


To make a loan, regardless of the type, a

credit analysis. This analysis will verify your name in the market if you pay your

debts, or rather, if you have debt, if you use a credit card, if you pay your bills

without delay and all issues involving the financial relationship in the market. So, if you have your name on a credit restriction list, you won’t be able to file a used  car loan.

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Even researching about it, when it comes to financing, some doubts may still arise.

We’ve selected three frequently asked questions to help you through this important moment.

– Is it possible to finance without giving down?

Yes, it’s possible! But that will depend on the bank you are financing from and your credit score , the credit  score . There are few banks that offer 100% credit for  financing your vehicle.  When choosing, research and find out about the financing policies of each bank.

– If the installments are not paid correctly, can the car be impounded?

This issue will vary from contract to contract, but yes, the car can be impounded.

So, before financing, analyze your conditions and try to organize your financial life. Avoid future headaches and make a plan by fitting the installments of your new vehicle.

– Can anyone do the financing?

Theoretically, if the person is over 18, yes, anyone can get a car loan. But in practice, the bank is solely responsible for evaluating your credit in the market. Questions such as: salary, how much of your income you already have committed per month with other commitments and a clean name are analyzed at the time of applying for credit.

To summarize, the criteria for approving used  car financing  will vary depending on the bank you hire and your credit analysis. So when it comes to financing, don’t forget: no dirty name, proof of income, don’t forget the documents and of course, do some research!

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Let’s emphasize right at the beginning of the topic: each bank is responsible for its approval and has its own criteria. However, some factors are often crucial for a car financing request to be denied. See what they are:

– Not having a driver’s license

– Have a score below 500

– Delay accounts regularly

– Being with the dirty name

– Have most of the income committed to other financing, such as property

– Have little credit experience in the market


Without going through a credit analysis it is not possible to know if a loan will be approved. So make sure you meet most criteria and look for a bank that offers good car finance rates. Pay attention to all the rules of the contract and make sure you get a good deal. Now, let us know in the comments: have you done any used car financing? Visit

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