How to Refinance a Vehicle – Car Loans


Being with the “dirty name” is a drawback when it comes to getting a loan, financing or paying a installment purchase. With this restriction, companies are afraid that you will not be able to repay a new debt – as your social security number has been included in the bad debtor list – and are not usually lending. There is, however, a great option to work around this problem: refinancing vehicles !

Refinancing a vehicle is giving it as collateral for a loan. By applying for credit , the bank grants up to 70% of the value of the car to the customer. To do this, the car must be settled and with the complete and correct documentation.

Refinancing is an option to unburden accounts and stop suffering from high interest rates.

Refinancing is an option to unburden accounts and stop suffering from high interest rates.

Credit card companies or even other lenders, for example, often charge high interest rates, and in a situation where it was already difficult to pay the original amount, it becomes almost impossible to pay off the new amount.

Obtaining refinancing amounts is a great way to pay off another debt. The amounts allow to repay the previous installments and, with lower interest, can balance the financial life of the consumer.

Depending on the amount owed to another financial institution, refinancing may still provide a “breather”. This is because, with some credit remaining after the payment of the debt, it is possible to plan a faster payment or to meet a new goal.

Refinancing Commercial Vehicles : Key Information

Refinancing Commercial Vehicles : Key Information

  • Age

To obtain credit with refinancing, the consumer must be over 18 years, and have in his name the car offered for the operation.

  • Car conditions

Only cars in good condition and with up to ten years of use can be refinanced .

  • Credit Payment

When borrowing, the customer will have between 3 to 24 months to repay all installments of the loan. This deadline will be stipulated in the plan adhesion contract, and can be negotiated to better serve the consumer.

  • Required Documentation

Vehicle and individual should have their complete documentation submitted for refinancing. You need the ID, CPF, proof of income and proof of residence, and all vehicle documents, paid off.

  • How to apply for a refinance

With all documentation, the client should look for an agency. On site, the best loan plan will be simulated and the terms of payment will be negotiated.

Be Careful When Refinancing

Be Careful When Refinancing

Vehicle refinancing can offer lower interest rates for one simple reason: the refinanced car is given as collateral for the loan.

Having the vehicle as a guarantee of refinancing, company may dispose of the asset if the installments are not settled.

With this guarantee, the financial institution is sure of the payment of the credit it has granted. Once the parcels are not paid, company can sell the car and auction it, receiving the money owed to it.

It is important, then, to reflect hard before opting for refinancing. Before closing a contract, consider your monthly income and your expenses.

Also calculate the possibilities with the bank’s credit and plan to pay the installments. Putting everything at the tip of the pencil will make it easier to keep the values ​​up to date and keep calling your car “yours.”