How to simulate a car finance?

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Financing has been one of the most requested loan modalities. This is because, this has been the easiest resource to purchase the long dreamed home or the much desired vehicle. Therefore, several institutions have specialized in this type of credit. If you are thinking of purchasing a car and need to apply for a loan, here is how to simulate a car loan so you can research well before applying for yours.

Why apply for funding?

Why apply for funding?

Financing may be a good option when you need to purchase a high value asset, such as a property or vehicle, and you do not have the full amount to purchase it in cash. In this case, the loan is a loan in which the financial institution provides the missing amount, which you can pay in installments plus interest. The installment of a vehicle financing can be up to 60 times, remembering, however, that the longer the installment term, the higher the interest rate tends to be.

However, some dealerships offer the possibility of zero rate on the financed amount, in case the customer offers a predetermined entry value, which is usually about 60 or 70% of the total value of the vehicle. Therefore, if you have a good amount of money to go in, it is worthwhile to inquire about this possibility and thus not spend on interest.

Care when applying for a loan

Care when applying for a loan

Find out about the financial institution where you want to simulate a loan. Always try to give preference to banks or other known financial institutions. And remember to be wary of very easy conditions, as they often hide scams.

Another important point is to research a lot about interest. Yes, they can vary greatly from institution to institution. In fact, most car shops and dealerships already have their own financiers, which do not always offer the best conditions, but which may end up winning their customers due to the ease and convenience of financing on the spot.

Therefore, however anxious you are to purchase your vehicle, and even as good as the offer may seem, be careful to go to your bank or financial agency, and request a new offer to compare. You can also do online simulations to compare.

How to simulate a car finance

How to simulate a car finance

If you have found the car you want to buy on the internet, or want to purchase the vehicle from someone you know, you can also simulate the financing of the vehicle through your bank’s internet banking, or through some financial website. There are even some mobile apps that allow these simulations.

However, while these facilities allow you to get an idea of ​​how much you will pay for the loan, be sure to consult with your bank or trusted lender before closing an online contract. This is very interesting because this way you can try to negotiate a lower interest rate.

Information you need to simulate a car finance

When requesting simulation of your vehicle financing at a bank or financial institution, you will need the vehicle data, such as:

  • Model year;
  • Year of manufacture;
  • The make of the vehicle;
  • The model of it;
  • The amount you want to fund;
  • The amount of installments you want to make.

Also, most finance companies do not finance the total value of the vehicle, so you need to report the amount you will receive. This amount will totally impact the interest rate you will pay, and consequently the amount of the installments.

When you apply for a vehicle financing directly from the dealership or car dealership, you do not need to enter the vehicle data as the store will already have it; but you will need to enter your personal details, such as:

  • Your contact address and telephone number;
  • Full name;
  • The value of your income;
  • Your social security number;
  • The amount you want to fund;
  • The amount of installments you want to make.

If you have an account with the bank branch where you applied for funding, you do not need to provide all of this personal data.

If the car is used, the finance company or bank may also request the vehicle’s number, so you can check if there are any restrictions on it. However, some sites request this information only when closing funding, not simulating it.

It is interesting to do several financing simulations so that you can choose the best conditions.

Three ways to buy a car

Three ways to buy a car

There are generally three ways to buy a term vehicle:

  • CDC (Direct Consumer Credit),
  • Leasing and
  • Consortium.

Direct Consumer Credit

This is the financing itself. In this mode, a loan is made to a bank to buy the car. The vehicle is held by the buyer but cannot be negotiated until all installments are paid. There is no need to broker a dealership, so the interest rates to be paid can be negotiated. They will be fixed in the contract and will not change during the payment of benefits.

Leasing

The second option is to contact a leasing company, that is, a bank that works with this type of service, renting the vehicle to the consumer until the end of the installments. Once the benefits are settled, the consumer becomes the owner of the car. Here too there is no need for intermediation of a dealership.

Consortium

In the latter mode, a consortium manager forms a group of buyers. The customer pays the installments, but only receives the vehicle when it is drawn – a person is covered monthly. Unlike CDC and leasing, installments change over time as the price of the car to be purchased varies in the market. The contracts may last for a maximum of 84 months and an administration fee is charged for services rendered by the company.

Can I finance a car with the dirty name?

INSS pensioners, retirees and civil servants are the three exceptions that allow someone with negative credit to continue this process.

Due to the continuous entry of money in the account, which allows the installments to be discounted directly into the customer’s account.

For those who do not fit these conditions, they have only two options: pay off the debt or opt for the consortium that they accept, but they can ask for at least 70% of the debt to be paid.

Can I make the financing without paying entry?

It is possible, but not recommended, as the value of the installments will only increase, creating a large debt that can last for years, in which the car may not even be in good condition anymore, only bringing damage to you.

Make your simulation now!

Now that you know how to simulate car financing , be aware of interest rates so that you can pay your installments smoothly and without paying abusive interest. Choose an online or physical financial, and request your simulation now!

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