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Questions about the car consortium
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Hiring a car consortium can be the most affordable way to buy a car. Continue reading to clarify 5 questions about the consortium that you should know before hiring yours.

Without a doubt, the consortium is one of the most popular forms of purchase in the country, according to a survey carried out by ABAC, until 2017, 1 in 4 vehicles were sold through this method.


The car consortium is a means of programmed purchase, where a group of people have a common objective – creating a fund to purchase the chosen asset.

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In a type of very well organized “fundraising”, each participant contributes their share every month and participates in a draw that determines who will receive the letter of credit and buy their car. The letter of credit can be delivered through draws and bids, or at the end of the plan.

But what are the fees involved? What car can be purchased? These and other questions will be answered in this article.

5 Questions about the car consortium that you should know before hiring yours
Image: Getty Images

1. What car can I buy?

Anyone, whether it's 0 km or used, that's the beauty of the car consortium.

When hiring a consortium, the customer chooses a certain model, but this does not mean that they are obliged to purchase exactly this car at the end of the plan. This initial choice serves as the basis for calculating the amount that should be raised.


Therefore, upon receiving the letter of credit, it is possible to buy the car selected at the beginning of the plan, or even choose a different model, or a car with a different price.

In the latter case, if the price of the car is lower than that of the letter of credit, the remaining amount can be used to pay off the IPVA, the insurance, or even the remaining installments of the plan.

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If the value is higher, the customer will need to pay the difference.

The only caveat is that the purchase must occur within the selected category, for example, in an auto consortium, only the purchase of a car is allowed, in a motorcycle consortium, only motorcycles and so on.


2. What fees make up the car consortium installments?

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.

3. Are the installments fixed or subject to adjustments?

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.

Simulate the price of your car insurance on our form.

4. Is it possible to change the payment date or advance installments?

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.

5. What are reduced installments?

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.

Hiring a car 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.

Questions about the car consortium

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Questions about the car consortium



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