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In 2023, the car consortium sector grew 25,6%, generating R$316,7 billion, but it still raises doubts when compared to financing.
Amid the search for affordable ways to purchase a vehicle, many Brazilians are turning to the car pool as an alternative to traditional financing. In 2023, the consortium sector generated R$316,7 billion, a growth of 25,6% compared to 2022, according to data from the Brazilian Association of Consortium Administrators (ABAC). However, this method of acquiring goods still raises many doubts. This article explores the positive and negative aspects of car syndication to help you make an informed decision.
What is a car consortium?
A consortium is a collective purchasing system in which a group of people come together to purchase a good, in this case, a car.
Each participant pays monthly installments and, through draws or bids, one or more members are awarded the letter of credit.
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In simple terms, the operator pools the money from all participants' installments and draws a letter of credit with that amount.
Each person receives their letter of credit, some sooner, others later, depending on luck or the bid.
Advantages and disadvantages
One of the main advantages of the consortium is the “absence” of interest, present in traditional financing.
Instead, the operator charges an administration fee.
If you managed to collect an amount in addition to the installments, you can place a bid and be considered more quickly, increasing your chances of obtaining the letter of credit sooner than expected.
With the letter of credit, you can buy the vehicle you want and you still have the possibility of negotiating your purchase as if you were paying in cash, which can result in better purchasing conditions.
However, the biggest disadvantage of the consortium is the waiting time. Contemplation can take years, depending on luck and the number of participants in the group.
If you need the car quickly, this option may not be ideal.
Although the administration fee is generally lower than the interest on financing, it still represents an additional cost.
Depending on the operator, this fee may increase; Therefore, it is important to pay attention to the contract to avoid surprises.
Just like with financing, if you are unable to pay the installments, you may lose your credit, not receive the full amount you paid until you stop and still have a negative CPF. Default is a risk that needs to be considered.
Comparison between consortium and financing
In financing, you pay interest, which can be high depending on the conditions of the loan. market and your credit profile.
In the consortium, you pay an administration fee, which tends to be lower than the interest on the financing.
With financing, you get the car immediately after credit approval. In the consortium, you can wait months or even years to be considered, unless you are lucky or can make a significant bid.
Financing offers less flexibility in terms of payment and price negotiation.
In financing, the risk lies in high interest rates and the possibility of not being able to pay the installments. In the consortium, the risk is default and the waiting time to be covered.
Tips for a good choice
Before joining a consortium, research the operator's reputation. Make sure she is trustworthy and has a positive track record with her clients.
Read the contract carefully before signing. Understand all the fees involved, the contemplation period and payment conditions.
Plan your finances to avoid default and ensure you can make payments until the end.
If you can wait to purchase the car If you prefer to avoid interest on financing, a consortium can be a good choice. If not, financing may be better suited to your needs.
The choice between consortium and car financing depends on your profile and needs.
The consortium offers advantages such as no interest, financial planning and negotiation power, but has the disadvantage of waiting time and the risk of default.
Financing allows the immediate purchase of the car, but with interest and less flexibility.
In the end, it is important to consider all factors before making a decision. Research, plan your finances and choose the modality that best meets your needs and objectives.
