Vehicle Refinancing: check everything you need to know!

Our financial conditions do not always allow us to cover all the usual expenses.

However, in the course of our routine, some surprises can arise and leave us with a considerable amount of debt, such as a possible vehicle refinancing. In the search for attempts to solve the problem of lack of money, it may be necessary to take out a loan. But, again, we can run into another difficulty: not getting the desired value.

Solve this problem, one of the alternatives is vehicle refinancing. Find out now what this service is about and evaluate if it can be a good way to solve your problem.

What is vehicle refinancing?

vehicle loan

Refinancing a vehicle means taking out a loan and using the car as a guarantee of payment. Basically, if you don’t keep your promise and don’t pay the installments, you could risk losing it to the bank.

In this type of loan, interest is lower compared to personal credit. This is because the bank understands that, if you do not pay the debt, it will have no loss, since it can take the car to offset the amount borrowed.

What vehicles can be refinanced?

vehicles loans

One of the requirements for vehicle refinancing concerns the model and year of the car. Generally, banks only accept refinancing for cars under 10 years old. The newer and more expensive your car, the greater the loan margin, meaning the more money you will get. The assessment is made according to the values ​​indicated by the Fipe table.

Generally, the amount released relates to half the vehicle’s value. But, your monthly income is also taken into account, since refinancing only allows you to commit up to 35% of how much money you earn per month.

Under what conditions can the vehicle be refinanced?

car loans

The first thing you should know is that only the vehicle that is in your name can be refinanced. Remember that the car will remain in your name, but sold to the bank, that is, you will not be able to sell it until you have paid all the installments of the refinancing. Depending on the bank, the fact that the car is not paid is not a reason to prevent vehicle refinancing. This means that some financial institutions accept the disposed vehicle as collateral.

In this case, the loan amount will be divided, that is, a portion will be used to pay off the remaining installments. The other part is for you to use the money however you want. That way, you can, for example, renovate the house, take a trip, open a business, pay debts or invest in whatever you want. You will not need to prove where you are using the money you borrowed.

What is needed to refinance a vehicle?

What is needed to refinance a vehicle?

You must go to the bank with your personal documents, such as original and a copy of the RG, CPF, marriage certificate, proof of income and proof of residence. Car documentation must also be delivered. In this case, the Vehicle Registration Certificate (CRV) and the National Driver’s License (CNH) are required.

If you have a dirty name, you may find it more difficult to get vehicle refinancing. It is important for you to know that some financial institutions even release credit to those who are negative, but this may have higher interest rates, which would only increase your debt.

What if I am unable to pay the refinancing installments?

vehicle loans

In this case, your name goes to the Securedlink credit registry. In addition, the car will be taken and will go up for auction so that the bank gets back the amount it lent. So, before making any kind of decision, you should evaluate all the points that we have mentioned so far about vehicle refinancing. Analyze all the advantages and disadvantages of this service to find out if it is right for you. You need to keep in mind that it is only interesting to take out a loan if it does not further damage your budget and if it does not offer greater risks, such as the loss of an asset.

The best alternative to avoid losses and bigger problems are to think about other forms of credit. One of them is the online personal loan, a service offered by Lite Lenders Credit that works in partnership with more than 30 financial institutions in the country.

When accessing our website, fill out the form, stating the amount you need and the number of installments you want to pay.

  • Enter your name, email and click continue.
  • Fill in the blanks, informing your personal data and financial situation.
  • In a few minutes, our search engine will show you a list of banks that offer the best payment terms and lowest interest rates.
  • Follow the instructions to make the loan effective and smooth. With that, you won’t have to worry about offering your car as a guarantee, as you will have been able to find much more advantageous services.

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