Consortium X CDC – See the Differences and Characteristics in Detail

Have you ever tried to buy a vehicle or property? Even if the answer to this question is no, you definitely know how much work this is, right?

So, to make the purchase of any of these goods, you can count on the help of some credits, which in turn can range from loans to different types of financing.

Do you know exactly how all types of financing work? In general, it is considered by many to be one of the best alternatives for purchasing goods.

But anyway, come and draw your own conclusions through this article that will talk in more detail about the types: consortium and also the CDC.

Financing - What is it and how does it work?

It is very likely that you have already heard about financing, however, do you know how they work?

In fact, there are several types of financing, especially when we are referring to one that will be aimed at the purchase of a vehicle.

In general, financing works similarly to a loan.

That is, the financial institution gives you the full amount so that you can purchase the good and thus, you will have to pay the invoices.

Invoices which, in turn, are increased by interest rates agreed with the institution that is providing the money.

As long as your debt is not settled, you do not have the right to make any negotiation about the good.

However, there are several other types of financing, which in turn cause some conditions to change.

When we are dealing with vehicle financing, we can find several “subdivisions”, some of which are called: consortium and CDC.

Meet them!

Consortium - What is it and how does it work?

The consortium is one of the best known alternatives to purchase a vehicle.

It basically consists of group work in favor of forced savings.

Which in other words means that when applying for such credit, you are inserted into a group formed by other people who have the same objective.

All must pay a certain amount, which in turn, go according to the price of the vehicle they want to buy.

Every month, when the payment has already been made, there is a draw, which in turn is responsible for saying who was contemplated.

The beneficiary has access to the money related to the payment of his asset and thus enters into a debt with the bank, that is, from these months onwards it will be necessary to pay the invoices, the amount of which will be decided based on a negotiation between you and the bank.

In addition to contemplation through the raffle, you can also place bids (of amounts in excess of how much you must pay monthly, but which will be deducted from the final bill). If it is larger than the other participants, you can also be contemplated.

CDC - What is it and how does it work?

Regarding the acronym CDC, it refers to Direct Consumer Credit.

The credit in question is an alternative that is highly requested by people looking for greater convenience when obtaining their car, or any other vehicle.

Really requesting the CDC is a more practical option, however, obviously this will have a cost, high by the way.

The cost in question is applied to the consumer in the form of an interest rate.

Fee which, in turn, is charged during all months of the contract.

It is also important to say that with the increase in the rate, it is likely that there will be an increase in the Selic rate.

In this case, the asset will be registered in your name, however, it cannot be sold before the contract expires, as it will be sold to the bank.