Car: is it possible to refinance?
Asset-backed loan is one of the most inexpensive forms of credit. Since the money lent by the financial institution has a payment security, the Total Effective Cost (CET) becomes lower for the consumer. Generally, this mode of credit accepts only real estate and cars removed.
But among the most common doubts are: Is it possible to get a loan while I’m paying for the car? Is it possible to refinance an already sold vehicle with a financial institution?
What is an alienated car?
Well, to begin with, it’s important to know what an alienated car is. Alienating a car is leaving it as collateral to repay a loan or a financing. The good placed as collateral will be partly with the name of a bank or a financial institution while the customer is paying the installments of the loan. Use is normal and unrestricted. After the payment of the installments, the vehicle will be transferred in full to the name of the owner.
Disposal is the guarantee that your financing or loans will be paid. Therefore, those who can not pay the benefits have the good taken by the financial institution to pay off the debt. Learn more about the stages of vehicle alienation in this IQ 360 article .
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Is it possible to refinance an alienated car?
Yes, there is the possibility of getting a refinance. However, it will depend on some factors of the vehicle and the financial institution.
Not all financiers grant loans to those who have car financed. Therefore, it is advisable to go to the bank or the financial in the vehicle was financed to know what the conditions. One of the financials that allows the release of credit for vehicles not cleared is Creditas.
But before you look for a new financial institution to refinance your vehicle, you need to be aware of some conditions:
- The maximum amount you can borrow is the full value of the car from the FIPE table. For example, if the vehicle is priced at $ 40,000, this is the maximum amount your loan can reach. However, the amount released for loan is around 50% to 90% of the total value of the vehicle, depending on the financial institution;
- But the value of the FIPE table is not fully released. Your loan application is debited the amount due on the financing of the vehicle. For example, if the customer with the car valued at $ 40 thousand needs $ 5 thousand to pay off the previous loan, he will receive $ 35 thousand in the new financing;
- This amount is automatically charged because a vehicle can not be sold in two places at the same time.
How to get a loan with an alienated vehicle?
Before you apply for the loan with the financial institution, have the updated settlement amount paid in cash. So, the financial one will have to say whether or not you approve the credit for you.
At Creditas, for example, you need to have more than 50% of the value of the car removed to get a chance to approve a new loan. Inform the financial at the time of registration that your vehicle is already alienated.
But it is important that you have more than half of the debt taken out. Imagine the following situation: your car is valued at $ 30,000 and you paid half the debt. That means you still owe $ 15 thousand. As the amount approved for loan varies from 50% to 90% of the good, in this example the amount released would be R $ 25 thousand. Of this total, there would be only R $ 10,000 and the loan could not be so advantageous.
Is it worth making a loan with an alienated vehicle?
It can be a good option if your vehicle is almost all taken off and if the credit released by the financial institution actually cover your goal.
But before applying for the loan, check out the interest rates so you do not risk losing your vehicle. If you are still in doubt, access the IQ Loan Comparator, which will help you find the best loan according to your profile.