In a time of crisis and with the market down, we are all looking for a way to have some extra cash. There are several ways available to get a loan, with different repayment terms and interest.
An alternative that has been conquering more and more Brazilians is the refinancing of vehicles. This modality varies according to the car you own, how much you want and how many installments will be made.
We will take questions about what refinancing is in this post. Keep up!
How it works
Basically, the person interested in the mode takes out a loan with the bank (or any financial institution) and gives the car in his name as collateral. If you can not pay the installments correctly, the bank can be in the end with the vehicle.
This type of loan is usually made with the car paid off, but it is possible to get it with some installments still to be paid from the vehicle, and part of the money obtained will be destined to pay those remaining installments.
No need to demonstrate what this money will be used for, you can use it any way you want.
How much can you get
The market value of your car is what will determine the amount you can get. Depending on the institution, up to 100% of the value of the vehicle can be achieved.
This means that your younger car is, the more money you can borrow. Most banks only accept cars with up to ten years of use.
Term and interest
The time to repay installments is another factor that varies widely, but institutions usually work within 60 months.
With regard to interest, this is a major advantage of refinancing. As you will give the car as collateral, interest rates are usually among the lowest among personal loans, and it is worth a good search to find out which ones are lowest.
You can also anticipate installments if you get a little more money, getting discounts on interest. Just to compare, the refinancing rate can be two percent, while overdraft and credit card can be up to twelve percent.
What is needed to achieve
To apply for the loan, go to the institution with copy of ID and CPF, proof of residence and income. You can also access the site and finalize your registration.
In the case of the vehicle, present Vehicle Certificate and CNH. It is also good to take all the already paid portions of the vehicle, if not paid yet.
Good research on refinancing is very important and which institutions offer this type of loan that are reliable in the market.
Look for information with acquaintances who have already done this kind of business, and look for recognized institutions in the market. Search for interest and terms that you can meet, and don’t forget to take a hard look at the real market value of your vehicle.
A lot of people still have questions about what vehicle refinancing is, but with a good search it can be a great alternative to very low interest personal loan.
Did you like the post? Know someone who can benefit from refinancing? Share on your social networks!