Questions about the car consortium

As we already know, in a consortium interest rates do not exist. But some fees may apply. Generally only the administration fee is applied. However, in some cases, insurance and reserve funds are also charged.

It is worth mentioning that even with the charging of such fees, the final value is usually lower than that of financing.

When contracting a car consortium, a specific model of vehicle to be purchased is chosen, so if the value of that car is readjusted during the consortium, the value of the installments will also follow this adjustment.

This way, it is possible to guarantee that at the end of the plan, the consortium member will have the right amount to make the purchase.

But be careful, this adjustment can be positive, for example, if the value of the vehicle decreases, the installments will follow this correction.

The payment date cannot be changed, as any change in this regard may affect other participants, as the payment date is the same for everyone.

Advance installments can be made, depending on the contract signed. When allowed, it can happen in 3 different ways:

Diluted – A certain amount paid is deducted from the next installments;

Direct – all installments, from the current moment to the last, are paid;

Indirect – Some installments are paid, this way the amortization starts from the last installment, moving towards the current one.

If the consortium member decides to pay off all the installments, this does not mean that he will be covered immediately. Therefore, if the customer is in a hurry to receive the letter, perhaps the best option would be to use this amount in a bid.

When a consortium with reduced installments is contracted, the client pays a lower amount in monthly installments over a specified period.

After this period, a new calculation of what remains to be paid takes place, including adjustments and the outstanding balance. The amount obtained is divided again into installments, which will be paid until the end of the consortium.

When deciding to hire a consortium, some steps must be taken before closing the deal. The first is obviously to clarify any doubts you may have about this type of purchase.

Next, it is a good idea to carry out simulations on the consortium administrators' websites, with the results of this research the client can now understand which plan and company will help them best.

If there is still any question in doubt, do not hesitate to contact the company of your choice and ask.