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
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
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.