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How to Consolidate Vehicle loan – Simulate and Hire Here

It is personal loan with vehicle warranty: in this option, a vehicle is placed in guarantee in case you do not pay the installments on time.

As the bank is sure to receive your payment (in the worst case it wins your vehicle), you will get very low interest rates.

The idea is always the same: if the bank does not see much risk to get the money back, it can charge very low interest rates.

And that name ” consolidation ” makes perfect sense: after all, it’s as if you’re paying back the installments of your car.

If you do not pay, your automobile is auctioned (usually at a much lower price than if you decided to sell it). So, only use this option if you are sure that you will be able to repay the debt. Otherwise, consider selling your car.

Generally, the banks release values ​​of 60 to 70% of the sale value of the car. That is, you can achieve a much higher value than in traditional personal loans, depending on the value of your vehicle.

This, however, can give the false sense that you are full of money. Soon, this type of loan should be very well thought out: What are you going to use that money for? Already have a project well thought out for him?


Low interest: well below the average for personal loans (which are around 130% per annum). In some institutions you can get up to 18% per year.

Highest Values: generally up to 60% of the value of the vehicle

Elongated Deadlines: Payment can reach up to 5 years

The vehicle remains yours (unless you delay the parcels)

* Date of December 2016


If you do not pay the loan on time, you lose the vehicle : the bank sells your car to pay off the debt (and often for a much lower amount than if you decided to sell it yourself).

It involves higher costs than a traditional loan : valuation, broker, IOF, insurance … all this can be embedded in the financing or paid right after the loan is released, depends on the bank.

Plan yourself

Be careful not to be trapped: know beforehand what the money will do for you! Paying more expensive debts? Invest in a new business? Find out where the money will go out and how it will get back in to pay the installments.

Credit can change your life for the better: and that depends on your planning.

Remove the vehicle to be consolidated

Remove the vehicle to be consolidated

Most banks do not approve the loan when the car is not cleared. There are two possible solutions. The first option is to seek banks that accept this debt and refinance alienated cars. In that case, part of the consolidation money will take away the vehicle and the rest will be with you. (Be careful and see if this option will not have high interest rates). The second option is to refinance the vehicle before consolidation it, especially if you are near the end of the financing.

Also, try to regularize the documentation of the vehicle and, of course, its documentation. The vehicle must be in your name.

Vehicle evaluation

The financial institution will evaluate the value of your vehicle. consolidation usually frees up to 60% of the value of your vehicle and allows you to commit up to a maximum of 30% of your income repaying the installments. The year of manufacture of the vehicle counts a lot! Vehicles made over ten years ago are not usually consolidated, but the bank may charge for this assessment anyway.

Necessary documents

In addition to the required documentation cited below, it is important to know that banks prefer the vehicle removed and require it to be in the name of who is applying for consolidation. Usually the requested documents are:

  • RG and CPF
  • Proof of marriage, for those who are married
  • Proof of income
  • Proof of address
  • National Driver’s License 
  • Vehicle Registration Certificate 

Loan consolidation fees

Recourse to a pool of loans is an attractive operation. And for good reason, it facilitates the calibration over a longer period of debt of the borrower, alleviating the burden of heavy burden on his shoulders. However, this technique raises a lot of questions, especially regarding the possible costs it can generate. Indeed, it must be kept in mind that some fees are mandatory and some optional or additional. To enlighten you on the question, here is an overview of the costs to provide.

What fees do you charge?

The most emblematic remain above all the expenses of study of file. Like other transactions specific to the banking community, recourse to pooling of loans requires the compulsory payment of file study fees. However, these are not mandatory until your application has been approved. This means that an application that has just been the subject of a simple study by a banking institution can not result in the payment of any sum.
Apart from the application fees, the subscription of an Invalidity Death Insurance is also obligatory. This measure aims at guaranteeing the repayment of the monthly payments of the loan contracted in the event of death of the borrower or in the event of a serious accident resulting in a temporary or definitive invalidity. In addition, you may be required to pay an Early consolidation Amount (ARI) on a pooling transaction.
If it is a real estate loan that is being redeemed, then the value of the IRA will be worth 3% of the remaining capital. IRAs are also applied when the merger involves existing loans or simply if the value of consumer loan reaches a significant threshold.

The costs of guaranteeing your loan

The costs of guaranteeing your loan

No structure engages in a loan consolidation operation if it does not have sufficient guarantees from the borrower. To comply with this requirement, two choices are available to you:

– The mortgage of your property which requires the payment of a tax of land registration whose value is estimated at 0.65% of the sum borrowed

– The bond. If your deposit is a third party, no fee will be charged. On the other hand, if it is a professional structure, the guarantee fees in this case amount to 2 or 3% of the loan.

Optional fees related to a consolidation of loans

Optional fees related to a consolidation of loans

These expenses mainly concern those related to the subscription of an unemployment insurance. Although not mandatory, this insurance can be very useful as it offers monthly repayment guarantees when the borrower is out of work.

The ancillary costs to provide

When the services of a broker are solicited, it is quite normal that this entitles to the payment of brokerage fees. These fees vary most of the time between 3% and 5% of the proposed loan.

Consolidation: Know the Rules – Low Interest

Check the conditions and requirements of providers for consolidating of property or vehicle.

You can consolidate your car or your home.

Providers is one of the largest banks in the country, and the consolidating of car and property is among its various services. The conditions of both are very similar. Interest rates vary widely and are usually only reported after the bank’s credit analysis, which considers your income and defines how much you can pay per installment.

What are the conditions of the consolidating of Property or Vehicle?

What are the conditions of the consolidating of Property or Vehicle ?

To obtain consolidating you must be a bank accountant. The vehicle or property, as in all other banks and financial, must be in its name, removed and with the documentation all day.

The bank releases consolidating for individuals and legal entities. To release the credit in a vehicle consolidating, Providers requests that the documentation of the car with the State Department of Transit be regularized.

Providers accepts residential and commercial properties and there is no minimum value for credit, but as is customary in the market, the released credit may be at most 60% of the value of the property. The interest rates vary according to the credit analysis and the term for payment can be up to 10 years.

For the consolidating of vehicles, Providers imposes the following conditions: the vehicle must be manufactured in the last 10 years, and the credit reaches up to 60% of the value of the vehicle. Interest rates vary according to the credit analysis result, and it is possible to pay installments within 4 years.

Is it worth doing a consolidating of property?

This type of credit is very interesting because it offers some advantages to customers, such as a low interest rate in relation to other types of loans, a longer term for payment and the possibility of obtaining credit even though the name is negative.

The amount released is also high, and can reach up to 60% of the value of the property. Banks and financial institutions loosen certain conditions and requirements by having their asset as collateral, which facilitates the release of credit.

A consolidate is indicated for those who need to take out expensive debts, avoiding finances getting even more out of control, or for entrepreneurs looking for credit to open their business or make an investment in it.

Is it worth it to do a vehicle consolidation?

Is it worth it to do a vehicle consolidation?

Similar to consolidating property, but with a lower credit amount, since vehicles have lower market value than homes, you need to look at a few factors to see if this type of loan will help you.

Just like consolidating property, consolidating your vehicle is a good thing if you need to pay off debts or major maturities so you do not get complicated. Interest rates are lower and payment deadlines are higher than for personal loans, for example.

Consolidating loan helps you breathe new life into your finances, but do not forget to reorganize your monthly and annual accounts and expenses to avoid further borrowing, and of course, prioritize your installments so you do not generate a new financial problem.

Is consolidating vehicle loan safe? – Low interest

When it comes to searching for the cheapest credit line, the differentiated conditions of the secured vehicle loan draw attention. However, by knowing the process up close, not everyone feels safe in consolidation vehicle.

The questions that most arise around this are:

“Why does the company ask for my car as collateral?”

“Can I lose my car during the process?”

“How do I know the company is reliable?”

And many others.

When you are familiar with this mode, it is normal to have many doubts. That’s why we’ve prepared a guide for you to better understand how vehicle consolidation works and how to find a trustworthy institution.

How Vehicle Consolidation Works

How Vehicle Consolidation Works

This line of credit is known for offering high values, low interest rates and attractive deadlines. Therefore, it is among the most appropriate modalities for carrying out life projects, reducing debts and even investing in the business itself.

However, for the financial institution to be able to offer this to you, you need to be sure that you will get the money back.

For this, a real guarantee of payment is required, as a good – in this case the car. And, when consolidation vehicle, you tie it to the operation, but you can use it normally; ownership continues.

That way, you prove to the company that you are a good payer and reduce the risk of default. As a result, the company reduces interest rates and extends the terms.

Stages of hiring

  • Request: You fill out some basic information and tell us how much you need. The company prepares a preliminary credit proposal.
  • Credit analysis : You forward some documents. The company evaluates if the proposal favors its financial profile.
  • Inspection : The company marks an evaluation of your car.
  • Closing and Release: You sign the agreement and have the amount released.

So is consolidated vehicle insurance?

So is consolidated vehicle insurance?

Yes. This is a completely safe operation, provided you do it in a trustworthy institution. It is critical to research hard before hiring and comparing payment terms to avoid problems.

Some doubts that usually arise are:

Can I lose my car?

If you get defaulted, this can happen. However, this is not the goal of the financial institution. And neither is it because you delayed one day the payment date that will already have the well taken.

You have the opportunity to talk with the company to find the best way to pay off this debt. If you still remain in default, and the negotiation possibilities are exhausted, a notice of the beginning of the taking process is sent.

Is it possible to sell or buy an alienated vehicle?

You can only transfer this asset to another person after the debt is paid off. Therefore, if you want to sell or buy an alien car during the payment process, you must first pay off the remaining installments.

Vehicle loan consolidation – What is it? How it works? Where to consolidate?

Vehicle loan consolidation is a vehicle loan as collateral. That is, the bank lends you money (which you use as you wish) and your car is placed as collateral for that loan, in case you do not pay the installments up to date.

As the risk of the lender losing money is low, the terms of this loan are usually one of the best in the market.

And that’s why this may be a good one for you!

Vehicle Consolidation Values ​​and Timeframes

Vehicle Consolidation Values ​​and Timeframes

The amount released on this loan is usually up to 70% of the value of your car.

And the payment term varies from 12 to 48 months

The installment amount can not exceed 30% of your income (which may be even lower if you already have your income committed to other debts)

Advantages of Vehicle loan consolidation

Advantages of Vehicle loan consolidation

Interest rates are much lower

Amounts released can be high

Longer payment period

It can happen to accept negatives

Disadvantages and Limitations of Vehicle consolidation

The vehicle usually has to be removed and in its name.

The older the vehicle, the lower the chance of getting a loan (since the resale value is lower)

If the debt is not paid, you will lose your car. So to avoid problems, you have to do a great planning of how you will spend this money.

What documents can be ordered?

  • RG and CPF
  • National Driver’s License 
  • Proof of address
  • Proof of income
  • Marriage certificate (if applicable)
  • Vehicle Registration Certificate 
  • Vehicle Registration and Licensing Certificate 

Where to consolidation my vehicle?

Most banks and financial institutions carry out this type of loan, including large banks. In some of these institutions the consolidation is available only to those who are account holders, since payment of the installments is directly debited from the account.

Where consolidation Can Help You

You need to understand how to consolidation vehicles, as this feature can help you in a variety of situations. But first, it is important to be aware that a new debt will be made, and that you will need to be committed to the payments, so as not to disrupt your monthly bills.

Consolidation of vehicles is indicated for cases of necessity such as:

  • Paying debts with high interest rates;
  • Pay the credit card bill;
  • Remove taxes;
  • Reforming the house or apartment
  • Paying for college;
  • Make an exchange;
  • Pay the entrance of a property;
  • Start your own business.