For many Brazilians, vehicle financing is the easiest way to get a new car or motorcycle. This process consists of a tool that allows people, even without money in the bank, to be able to purchase the vehicle they want.
Those who finance a vehicle have the option to pay it off before or within the period defined in the contract. Check out how to pay off vehicle financing below
What this article covers:
What does it mean to have a financed vehicle?
Vehicle financing consists of a process where a particular bank offers a value as credit for the purchase of the car. This credit is directed to the concessionaire and there are interest rates on it for possible risks.
The person who asked for the financing makes the installment payments directly to the bank until the contract is terminated. Basically, this is how all financing happens, however, there are 3 different types of car financing: direct consumer credit, financing carried out between individuals and finally the consortium.
Each of these types is indicated according to the particularities of each client and their objective. The bank is responsible for the analysis and also advice before closing the contract with the interested customer.
How do I pay off a vehicle loan?
The first thing to do when choosing to pay off a vehicle purchased through financing is to find out how much remains to be paid. This can be done at the bank where the financing agreement was signed. In the query, it is possible to view the data on how much is left for the vehicle to be paid, the term and its interest.
Anyone who takes out a loan can pay off their vehicle at any time, even in advance, but for this it is necessary to pay the full amount and the additions defined as fees and interest.
In order to be able to define the correct payment values, it is necessary to carry out a calculation using the PRICE table as a simulation. This method can help define the amount of discounts and the debtor balance.
Once the process is complete, it is necessary to find out how to proceed in the financing source bank and check with your banks. Some banks offer tools for 100% discharge, but in some it is necessary to send documents by post or look for an agency.
Can I return the vehicle for financing discharge?
For those who cannot pay the debt until the end for some reason, it is possible to carry out a renegotiation agreement, where smaller installments are created.
However, if this method is not advantageous, it is necessary to look for a way to return the vehicle. For this it is important that the vehicle is intact and the process is not done after a long time of use.
It is possible to discharge the vehicle through an auction, where the amount collected is used for the discharge or direct return of the vehicle, where the debt is forgiven. However, this modality leads to a decrease in the customer’s credit analysis.