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
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?
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.