In this article, we discuss about Simple Way To Approved Car Loan.
Owning a vehicle is the dream of many Brazilians. This statement is confirmed by the Brazilian Federation of Banks, which registered a growing rate of financial transactions involving the purchase of automobiles in 2019.
It turns out that maintaining and paying off the installments of the asset can be difficult. We have listed some solution options to help drivers who, for different reasons, cannot afford car financing. Car Loan
If the driver is unable to pay the car loan, he can:
Sell the vehicle to deduct debt
Luca Cafici, CEO of InstaCarro, a vehicle purchase and sale platform, says that, despite seeming paradoxical, selling the financed vehicle may be the solution for those who got involved in debt.
“With the money from the transaction, it is possible to pay the remaining amount to the bank (avoiding higher interest), get the budget up to date and, from there, better plan the purchase of a car”, explains the expert.
The Brazilian Institute for Consumer Protection (Idec) adds that it is possible to resell the car to the dealership where the vehicle was purchased or to another store. However, the consumer will hardly get all the money he owes, since the financing involves interest.
But, the agency clarifies, with the sale, the consumer will be able to pay off part of the debt and renegotiate the remaining balance. In this case, it is necessary to be careful, as there must always be a proportional discount of interest for the advance payment.
Another hypothesis is the sale of the car at an auction made by the finance company or bank, to reduce part of the debt.
Did you see? Vehicle financing grew 3.5% in 2019
Exchange the car for a cheaper vehicle
If the consumer needs a car to work, or is unable to use an alternative means of transport, it is possible to exchange the vehicle for a cheaper and more economical one.
“With the ‘profit’ obtained in the exchange, the person can pay off the debt and reorganize their life financially without harming their duties with the absence of a car”, adds Cafici.
Idec points out, however, that a portion of the car’s value will likely be lost. This is because the consumer will hardly be able to recover the exact price he paid (the devaluation starts to take effect as soon as the vehicle leaves the dealership).
Renegotiate car financing with the financial institution
An important tip for both those who intend to negotiate the car and those who intend to keep it is to try to renegotiate the debt with the financial institution. It is possible to get more interest on account in the months or more advantageous payment terms.
But remember, debt will never go down! What the entity usually does is to lengthen it so that the person has a relief in the portion.
We explain the possible solutions for those who cannot afford car financing. Renegotiating the debt or changing it are options.
Consortium or financing: choose the best for you
It is also possible, according to Luca Cafici, to renegotiate car financing with another bank through the concept of credit portability. In it, the user can search if any institution offers favorable conditions, such as lower interest rates, and request this migration at no additional cost.
It can be a good alternative for those who have an account in different banks. It is important to stress that this is not about reducing funding, just finding better situations for your payment.
Transfer funding to someone else
Many don’t know, but it is possible to transfer the funding to someone else. This as long as there is no payment in arrears – the solution is ideal, therefore, for those who already know in advance that they will have difficulties in honoring the payment. Read More
Just go to the financial institution for them to assess the profile of the new buyer. The transfer must also be registered in the vehicle documentation, with the State Department of Transit (Detran).
Learn how to transfer or sell financed cars
According to Idec, the procedure involves some fees, both at the bank or financial institution and at the transit agency.
Bank can rescue the good of those who cannot pay the loan
According to Idec, since the end of 2014, Law 13.043/14 facilitates search and seizure procedures.