When you're ready to buy a car, there are a few things you need to think about. The first is how you are going to pay for it. This is because it is possible that you need to take out a loan or vehicle financing. But it's important to understand exactly how financing works before hiring it. That's why, in today's article, we're going to show you the details of this modality so you can make your dream of owning a car come true!

First, it is important to explain what a vehicle loan is. That is, financing is nothing more than a kind of loan. But this loan is specific for new, semi-new or used vehicles. By the way, this credit is offered by banks and credit unions. In addition, in financing it is possible to give entry. In this way, you reduce the loan amount and even the interest.

In addition, there are some types of car financing. For example, some last longer, between 12 to 60 months. In addition, interest can also be charged in different ways. As well as amortization, that is to pay off the loan.

By the way, if you are thinking about financing a car, it might be a good idea to start analyzing your credit score. If it's low, consider resolving backlogs. This is because it is much easier to get financing with the amount you need in one of the banks. In addition, it is also good to have a current account with one of these banks. In this way, the bank can know your financial profile.

Currently, banking institutions offer some types of car financing. Among them, they can change the payment period, the loan amount and even the interest. We will show you below the types available in Brazil. Look:

Initially, Direct Consumer Credit or CDC is the most similar to a loan. Therefore, it may have less bureaucracy, but at the same time, it has a very high interest rate. Exactly because it works in a similar way to a loan.

Therefore, in the CDC, the customer acquires the good, but the vehicle is sold. That is, even if it is with you, the car is still alienated to the bank until the end of the payment. However, during financing, the buyer's name is already the owner on the car's document.

Thus, Consumer Right Credit is a good option for those who do not want to wait to buy a vehicle. In this sense, it is only necessary to obtain approval from the financial institution. That is why we mentioned that it is a modality similar to a loan. This is because the installments are monthly and in some institutions there is the possibility of renegotiation. 

Finally, one of the disadvantages of the CDC is the interest rates. This is because, as it is similar to a loan, the interest is already included in the installment and can be quite high. So it's worth negotiating with the bank.

Basically, Leasing is a way to finance a vehicle at interest rates much lower than the CDC. However, it is also necessary to program yourself, as the time for payment may be shorter. 

That is, to carry out this financing, you need to be sure that you will be able to pay the future installments. In short, in Leasing, the bank practically buys the good, as it is in the name of the institution. After that, the installments are agreed and also the period in which it will be paid.

In general, the installments have much lower values than financing such as the CDC. That's because it works as a kind of rental. In addition, just like the entry of a financing, in Leasing you can pay the rest and have ownership of the good. This value is the Guaranteed Residual Value, which is stipulated at the time of the contract.

Furthermore, if it is not possible to make the purchase, the lessee can also simply return the good. Therefore, the time of use worked like a car rental.

In short, Operating Leasing is similar to Finance Leasing. This is because at the time of hiring the bureaucracies are practically the same. However, in the operational it is possible to exchange the good during the term of the contract. That is, it is possible to return a car and get another. 

In addition, the minimum payment period is 90 days. As well as the value of the installments cannot exceed 90% of the value of the good. Incidentally, maintenance expenses are paid directly by the institution. 

Firstly, if you have decided that you are going to finance a vehicle, you must choose the vehicle. That is, consider which car will best suit your routine and also how much you can afford. This is because institutions calculate the loan amount and interest rates on top of the amounts you already own.

Second, you should research financing models and decide what fits you best. In addition, it is also important to find the ideal financial institution. Currently, financing is carried out both by traditional banks and by credit unions or digital banks. By the way, all the information is usually available online. That way, you don't even have to leave the house.

In addition, during the credit analysis, take different proposals to the banks. Thus, you can get larger amounts for lower interest rates. Also, don't forget to assess your own financial condition. Therefore, it is essential that you understand your financial limits, so you don't end up getting into too much debt. In this sense, the bank will analyze its financial behavior. That is, your monthly income, if you pay bills on time, if you have a credit card, among others.

Finally, just gather the documents and hire the financing that best fits you. Typically, institutions usually ask for the following documents:

In general, the credit analysis does not take much longer than a week. In some institutions, you can have the credit approved on the same day. Therefore, the key is to have a good credit score when financing a vehicle. In other words, an average of 700 points on Serasa is a good score for financing.

Therefore, if you want to make your own car dream come true, financing may be a good option. However, don't forget to analyze your financial situation. Think about the value of the vehicle, as well as check the conditions and values of the installments to understand if you can afford the costs. That way, you can have your car without getting into debt.

Also, learn how the vehicle consortium works in the recommended post below.