Advertisements
Acquire the first financed car is an important milestone for many Brazilians.
This decision involves not only choosing the model or color of the vehicle, but also carefully evaluating the financial implications of making a long-term commitment.
Poorly planned financing can compromise your budget and cause future problems. Therefore, understanding the criteria for making this decision is essential.
In this text, we will explore the most relevant aspects to consider before closing the deal, with practical guidelines and updated data to help you make an informed choice.
1. Assess your financial health first and foremost
The first step for anyone wanting to finance a car is to analyze their own financial situation.
This involves checking net monthly income, calculating fixed and variable expenses, and identifying how much can be allocated to financing installments.
Financial education experts recommend that the total value of financing installments does not exceed 30% of net income.
This margin allows other expenses, such as food, housing and leisure, to be maintained safely.
Additionally, you need to take into account additional car costs such as insurance, fuel and maintenance.
According to a recent survey by Serasa (2024), 52% of the people who financed vehicles in recent years underestimated these extra expenses, which resulted in financial difficulties.
+ Financing Simulation: How Does It Work and Why Is It Essential?
Table 1 – Example of total monthly cost calculation
| Expense | Average Value (R$) |
|---|---|
| Financing portion | 1.200 |
| Safe | 300 |
| Fuel | 500 |
| Preventive maintenance | 150 |
| Monthly total | 2.150 |
2. Know the market: new or used?
The choice between a new or used car is crucial and should be based on the buyer's profile and needs.
New cars offer benefits such as factory warranty, lower initial maintenance costs and modern technologies.
However, they have higher prices and depreciate quickly.
Used vehicles are more affordable and have lower depreciation.
However, they may require repairs, especially if there is no clear maintenance history.
+ The evolution of credit in Brazil: What has changed in the last 5 years
Table 2 – Comparison between new and used cars
| Feature | New car | Used Car |
|---|---|---|
| Starting price | Higher | Lower |
| Maintenance cost | Low | Variable |
| Devaluation in the 1st year | About 20% | Generally smaller |
| Factory warranty | Yes | It may not exist |
When opting for a used vehicle, look for a vehicle with low mileage and a recorded service history.
Investing in a technical inspection before purchasing is also essential to avoid unpleasant surprises.
+ Direct Consumer Credit – Find out what CDC is and how it works
3. Compare available financing options
One of the most important steps is choosing the type of financing that best suits your financial conditions.
There are several options on the market, such as Direct Consumer Credit (CDC), leasing and consortium.
The CDC is the most popular alternative, as it allows the buyer to own the vehicle from the beginning. However, it requires a careful analysis of interest rates, which vary depending on the financial institution and the buyer's profile.
In 2024, the average vehicle financing rate in Brazil is 2.2% per month, but it can be lower for customers with a good credit history.
A consortium is a solution for those who are not in a hurry to purchase a vehicle. In this type of consortium, you pay monthly installments until you are selected or bid to bring forward the purchase.
This option is usually lower cost, but does not offer the benefit of immediate ownership.
4. First financed car: Understand the impact of the term on the final value
The financing payment term is a factor that directly impacts the total cost of the car.
Longer terms, such as 60 or 72 months, may seem attractive due to the reduced installment amounts.
However, the incidence of interest over time significantly increases the final amount paid.
For example, a vehicle financed over 48 months may have a total cost up to 30% higher than the cash price.
By opting for a shorter term, you reduce the impact of interest, but you will need to pay higher installments.
Therefore, the ideal is to find a balance between affordable installments and payment terms, considering your financial reality.
5. Don't forget the entrance fee
Making a larger down payment is an efficient strategy to reduce the amount financed and, consequently, the interest paid.
Banks and finance companies generally require a minimum down payment of 10% to 20% of the total value of the vehicle, but the higher the down payment, the better for the buyer.
With a significant down payment, the installments become lighter, and the total cost of financing decreases.
Therefore, plan ahead to save money and pay a substantial deposit.
6. First car finance: Analyze your future financial outlook
When you finance a car, you are making a long-term commitment. Therefore, it is essential to consider possible changes in your income, such as increased expenses, job loss or unforeseen events.
Also, think about your medium and long-term goals. Do you plan to change your car in a few years or do you plan to use the vehicle for a longer period of time?
These answers help determine the ideal time frame and avoid hasty decisions.
7. Research and negotiate before closing the deal
Researching the conditions offered by different banks and financial institutions is an essential step.
Use online simulators to compare proposals and, whenever possible, negotiate directly with institutions to obtain better interest rates and conditions.
It is also important to read the financing contract carefully before signing.
Be aware of clauses that may generate additional costs, such as late fees or administrative fees.
8. First car financed: Consider the total cost of ownership
In addition to the financing installments, the total cost of car ownership includes expenses such as IPVA, licensing, maintenance and insurance.
Ignoring these expenses can compromise your budget in the medium term.
According to data from the National Transport Confederation (CNT), the average annual cost of a popular car in Brazil is R$12,000, including maintenance, taxes and insurance.
Plan for these expenses and make sure they are within your financial capacity.
Conclusion
Buy the first financed car It is a decision that requires care, planning and information.
By carefully evaluating your financial health, market conditions and the costs involved, you will be better prepared to make a smart choice and avoid unpleasant surprises.
Remember that well-structured financing is not just a way to acquire a vehicle, but also an opportunity to build a solid financial history.
Research, plan, and make informed decisions. That way, you’ll be ready to make the most of your first car without compromising your financial stability.
