Portability of Vehicle Financing - See How to Do It






Vehicle financing portability is a way of selling your asset, even if it is still financed.

As we all know, portability is nothing more than a transfer, which applies in cases of telephone operators, health plans and even credits, which is what we will talk about now, here!

The financial market offers several credit options, such as vehicle financing. And for this reason, people are always looking for the best options.

Portability is something that helps a lot in this regard, especially because the options will always be innovating, seeking to satisfy consumers in general.

Therefore, so that you can obtain various information related to this vehicle financing transfer, we ask you to read this brief and explanatory article.

Our intention is to guide you and resolve all your possible doubts regarding the subject covered here. After all, we are dealing with a matter of utmost importance that could provide financial relief,

In addition to reducing high interest rates and also extending your term, which will allow a significant reduction in the amounts of installments payable in your contract.

What is Vehicle Financing Portability and How Does it Work

Competition between banks and other financial institutions, in search of more customers, results in the best possible conditions within the financial market.

We can define vehicle financing portability as the transfer of a debt from one institution to another.

In other words, the institution that you wish to transfer your current vehicle financing to will not purchase it, but rather, will pay your debt with the bank that originally offered the credit.

A new contract will then be formulated, presenting new conditions that you were interested in when requesting portability.

One of the main reasons why consumers want to change financial institutions offering such credit is because of the interest rate charged on each installment.

But, in addition, it is also important to take into account the quality of the services provided by the company.

Like the tools available, flexibility in paying installments, among other factors.

Also take into account the Total Effective Cost, which we also know as the CET.

The CET in question is basically a percentage rate, which represents the sum of all additional costs that the consumer may incur.

How can you request vehicle financing portability

When requesting vehicle financing from a specific financial institution. Most of the time, the following is taken into account:

  • Total term of the contract.
  • Credit release date.
  • Payment date.
  • Fees, interest and insurance.

But it is worth mentioning that the criteria for forming the Total Effective Cost may vary depending on each establishment.

Vehicle financing portability is something that was developed by the Central Bank of Brazil, with the aim of increasing competition between banks and other institutions.

And in this game, the winners are the consumers, being able to take advantage of the best alternatives in the financial market.

How to Carry Out Vehicle Financing Portability?

Despite being apparently simple to accomplish, portability requires study and
research, on the part of the consumer.

This is because such credit is something that involves a lot of money, therefore, defining what your newest institution will be is a choice that must be made carefully.

In principle, what you should do is carefully analyze all the information about your current debt. See the total balance you still owe to the institution, see how many installments you still have to pay, and of course, the value of each one.

It is also interesting to evaluate the interest rate charged each month, on the installments, the CET percentage, among other conditions of your contract.

This way you can have a “base”, when deciding which bank you want to carry out the portability. Search (on the internet) for all the companies that offer certain credit, so that you can compare them with what you currently have.

When the place where the portability will be carried out has been defined, then present your transfer proposal.

If approved, all issues that must be resolved will be the responsibility of both financial institutions (old and new).

It is important to highlight that in this process, a fee will be charged for the transfer, however, it cannot be paid by you; since, as we said, the responsibility will lie with the banks.

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