After a few years with the same car, people feel the need to trade. Most do not have the money in sight, you need to make a vehicle financing for car exchange.
For this to happen you must go to a dealership or resale of semi-new vehicles, choose the car you want to buy and budget the value of your current car. If you accept the proposal, your car will be given input and the difference financed.
The financial institution you choose to finance car swap vehicles will analyze your credit line to see if it will release the loan.
Understand more about car exchange vehicle financing
Financing can be done by various financial institutions through RTE. There are others, but this is the most common way of hiring. The amount of auto finance for car swapping will revolve around your monthly income. The smallest difference between your current and new car, the smallest loan you will need. Many people choose to sell the car directly to a third party instead of trading them at a dealership because the prices they pay are much lower.
This is because the dealership has to do a review on your car and make some adjustments to sell for the same price you would sell to third parties. If you sell your car privately you can take the money you receive and make the financing. Generally institutions require between 10 and 20% of the value of the vehicle as input. You can choose the number of installments you want to pay, taking into consideration the amount you can pay monthly. The installment may not exceed 30% of your proven income.
The more vehicle financing installments for car swapping you have, the more interest you will have as it is focused on them. Fees may vary depending on the financial institution you choose.
Vehicle Financing: Who Can Do?
The release of vehicle financing for car exchange will depend on the analysis made by the institution. It will analyze if you are negative, what your monthly income is and how much of your fixed installments you have in the month.
This will tell you if you can afford another debt and how much you could afford. Through simulation you can get an idea about the price entry and the value of the parcel.
Generally, the maximum debt repayment period is 60 months and may be 72 months at some financial institutions.
If you have a negative name, the loan is usually only approved for INSS civil servants, pensioners and withdrawals.
This happens because the installments are automatically debited directly from the salary or benefit, making the bank have guarantees of receipt of the amount.
In situations other than these, you will need to clear your name first to get funding. And even with the clean name, you will have no guarantee that the institution will approve.
Currently, institutions use Credit Score to define whether or not to approve their financing, which is nothing more than a summary of their history in the financial market.
Based on this history an automatic credit score is assigned to define whether or not to approve your registration.
How to hire the best auto finance for car swapping?
To know which one is the best you will need to do a research to know all the options of installments and rates of financial institutions. This helps you save money and not pay abusive interest.
Try the value and model of the car you want to finance, you will already have information through the simulations. Review the entire contract and pay attention to installation and interest values, which cannot increase over time.
With RTE you will have the car in your name during the contract and the vehicle will be alienated from the financial institution until you have finished paying for the installments.
Another form of financing is through leasing, but in this case the bank is the real owner of the vehicle and leases it until the debt is repaid.
If you do not repay the debt, the bank will keep your car and the amount paid so will not be returned.
Benefits of being a vehicle for financing car exchange
The great advantage of financing is that you do not have to have the cash in hand You should only have an income to pay the installments. Another advantage is that you can enjoy the new vehicle on time.
In addition, you will not have your income compromised, as you may be paying gradually. That way you can plan better and know exactly what you will spend.
We realize that financing a vehicle for car exchange may be more advantageous than you might think. Did you like this post? Share with your friends and also visit the article Learn all about working capital for companies.