Buying a vehicle is a great decision for anyone. This happens because it is a very expensive durable good, which means that most people do not have enough money to buy the car in sight, it is necessary to make a long term purchase and commit a portion of the budget for at least a few months.
But among the various payment options, it’s easy to get confused when choosing the one that best suits your situation. To help you with this task, we’ll explain about financing, consortium or leasing: what is the best option for buying a car. Follow us!
Financing is usually the most used modality for those looking to acquire a vehicle, whether new or used. Basically, it is a targeted loan, in which the bank is asked for the exact amount to buy the car.
If the funding is approved, the amount requested is already available for use. The car payment is made in installments, for a predetermined period.
The main advantage of this mode is that the car or motorcycle can already be placed in the name of the buyer. In addition, installments can be advanced, with the objective of reducing payment time and interest. However, interest rates on financing tend to be higher than in the other categories.
The consortium for the purchase of a vehicle works as a collective savings, in which all participants pay a monthly installment. At the end of each month, members are drawn to receive the amount agreed in the policy.
There is also the possibility of bidding. In this case, the highest bidder in the given period gets the correct amount for the car purchase, while continuing to pay the installments required to pay the full price.
The biggest advantage of the consortium model is to offer the lowest market rate, since it does not charge interest, only a management fee. However, there is no guarantee of the immediate acquisition of the property, ie the client does not know when it will be contemplated in the lottery and will receive the vehicle.
Finally, leasing consists of a lease, that is, a kind of rent. It works as follows: the bank acquires the car and grants the consumer right to use while holding the car in its name.
The period of use authorized for the driver shall be established in a contract and during that time he shall pay the benefits in accordance with the conditions laid down.
At the end of the installments, the customer must decide whether to purchase the vehicle or return it to the bank. If the choice is the acquisition, you will have to pay a residual amount defined by the contract.
The main advantage of this modality is the reduction in the value of interest, in relation to other financing available to individuals. In addition, the leasing is not subject to a tax on financial transactions, the IOF.
However, as the automobile is in the name of the bank, the contractor will have difficulty selling the good if he gives up the business. Another disadvantage is in case of default, since the financial institution can repay the asset in a short time.
But after all, financing, consortium or leasing: what is the best option for buying your car? The answer depends on your goals.
If your priority is the economy and you do not have immediate need of the vehicle, the consortium may be the best option. Leasing is the second most economical mode and offers the possibility of getting out of the car in a short time. However, if you wish to have the car or motorcycle in your name right away, it is better to invest in the financing.