For those looking to acquire a high-value asset, there are some credit options that can be good ways to get there faster. One of the most common forms among Brazilians is the Consortium. But is a consortium really worth it?

So if you're wondering the same thing, don't worry! Because we have gathered in this article everything you will need about the consortium, its main characteristics, positive and negative points. Thus, at the end of your reading you will already have a better idea if this type of credit will be more advantageous in your case.

But first, how about we start by understanding the main characteristics of a consortium and how it works? That way, deciding a consortium is worth it will become much simpler, won't it?

So keep reading and check it out below!

Because to decide if a consortium is really worth it, let's start by talking more about it..

Thus, in the case of the consortium, there is a lot of confusion with common financing. However, although the consortium fits as a type of financing, it has its own characteristics. So, it ends up being quite different from other types of financing, such as real estate, another type of financing most sought after by Brazilians.

Therefore, what will happen in a consortium is that many people – whether individuals or legal entities – will come together to acquire a high-value asset together. That is, the group acts as if it were a kind of savings account in order to be able to acquire high-value goods such as:

But the most popular types in Brazil are those aimed at buying cars and motorcycles, whether new or semi-new. In addition, there are even consortia for the acquisition of trucks, planes, for refurbishment, construction, etc.

So, this union is under the responsibility of a Consortium Administrator who, like financial institutions, also needs the approval and supervision of the Central Bank of Brazil.

But to decide whether a consortium is really worth it, understand that the fees that will appear in common among all consortium administrator options are just the administration fee and the common fund. 

Because the other fees vary according to the administrator you choose for your consortium.

Because a consortium is worth it when you take into account that the main advantage is not having to pay a down payment, as occurs, for example, in financing. In addition, there is no interest charge on consortium installments, yet another advantage! 

But there is also an advantage less known by people: the consortium will also be able to take advantage of its FGTS to pay off or amortize the debtor balance with the financial institution.

In addition, there is a wide variety of consortium administrator options, with varied offers of conditions for deadlines and credits. But there is also the advantage that you can make a consortium not only for the purchase of goods, but also to plan and purchase various other types of services, such as travel, for example.

Because sometimes a consortium is not worth it for a small detail. In short, one of the main disadvantages of the consortium is the appropriation of the high-value good, which does not occur immediately as in a financing. Thus, whoever hires a consortium will be able to acquire the good right at the beginning of the payment, or he will only be able to acquire it at the end of all the installments.

That is, it may take a long time for you to gain access to the high-value good. Because it will depend on your luck during the payment of the installments and the various raffles that will always contemplate one of the members of the group.

Thus, you can be lucky enough to get the high-value good in one of the first draws, enjoying it already during the debt discharge. But there is also the possibility of paying all the installments without being drawn, and only receiving the good after repaying the debt. 

In short, you can end up paying for everything without enjoying the good before paying off the full amount of the consortium.

Thus, as we said, the consortium brings together a group of people who can be physical or legal, to acquire a good together. Then, all consortium participants will pay the installments divided by the number of people in the consortium, which has a Consortium Administrator to manage the entire process.

In this way, the value of the installments ends up becoming much smaller and the payment terms are easier for the customer. So, the consortium is worth it and can be a good choice for those who want to acquire a good with smaller installments and with chances of being able to acquire the good before the deadline.

Because with the Consortium, draws take place monthly among the participating members. Then, one of them is chosen to take the good they were paying for before finalizing all the installments. Therefore, the consortium may end up being quite advantageous for you.

So, a consortium is worthwhile and becomes a good option, when the person does not need to enjoy the good immediately, and is able to pay the installments in the long term in the meantime.

In addition, a consortium can be used for different purposes, such as goods and services. But you need to take some care if you have concluded that the consortium is worthwhile and you want to participate in one. 

So, check out our care tips below!

Because to participate in a consortium, you will have to go through the credit assessment. So, if it is not a positive assessment, you may end up going to the end of the queue, and waiting until you pay off all the installments before enjoying the good.

It is essential to know about the security and soundness of the administrator who will be responsible for the consortium. So, do a lot of research on the administrator beforehand. In addition, check with the Central Bank if you are a manager with authorization to act, if you do not have legal disputes, etc.

Because then you will have the security to decide if that consortium is really worth it for you. So, research well and avoid fraud and headache, right?

As we said, one of the characteristics of a consortium is the possibility that you can take a long time to enjoy the good you want to acquire. That is, a consortium is only worthwhile for you, if there really is no urgency to own the good at the moment.

So, make sure you don't need it now, and that you can eventually wait until the end of the full amount of the consortium, before purchasing. So you avoid despair and disappointment for not being drawn soon and being without the good you want, for a long time and sometimes until the end of the consortium.

Basically, summarizing everything we've said so far, for a consortium to be something worthwhile, you need to meet three basic characteristics:

Because the consortium ends up acting as a kind of reserve or investment, but with the obligation that you deposit that amount every month to pay off the consortium installments.

So, if you fit this profile with these main characteristics, you will probably find that a consortium is worth it! But remember to take the precautions we talked about earlier, okay?

So, always research everything you can about the administrator responsible for the consortium before closing any contract. Also, check your credit score and be sure that you will be able to pass a credit assessment, so you don't end up incurring losses by being prevented from participating in sweepstakes during the consortium.

Because, as we said, those who have a bad credit score will not be able to acquire the good before paying off the total value of the consortium. Thus, a consortium may not be a worthwhile option in these cases.

So we've reached the end of our exclusive article with everything you need to know about consortia and whether it's worth participating in one. Now, take all the information you learned here with us, and do a good research before entering into any consortium agreement, ok?

Thus, we hope that it will be easier for you to decide if a consortium is what is worthwhile for you, and all the characteristics that involve a contract of this type. Because if you know how to research and make a good consortium agreement, you can end up doing very well and taking good in the first installments, or not. 

So, keep an eye on all the conditions, fees, tariffs, advantages, disadvantages, who is the administrator, etc, ok?

So, we hope this article will be of benefit to you in that regard, and even more!