Buyers of 0 km vehicles are in for a surprise when they sign up for savings plans because fees increase over time let the group last. In some cases, they reach 120 months, so the increases could occur over 10 years.
This is why it is very important to know what options you can have when deciding how to buy 0 km. And in the case in which you are already hired and increases in monthly payments are presented, there are also different paths that can be taken.
In situations where the vehicle has not yet been purchased, there are many options, but among the most chosen we find purchases paying the full price, savings plans and those financed with collateral loans.
Cash purchases are a good option for those who have the money and some uncertainty about their financial future because there will be no problems regarding future payments. They will also be able to sell it without problems when they need it because there will not be a lienholder waiting for collection.
For savings plan purchases, the situation is different because a moving value is agreed upon and, as the word says, there is no static price. In these cases the price of the vehicle will be modified throughout the entire contract.
What options are there if you cannot continue paying?
In this situation, one option is to advance installments; you can even get another loan to pay the total final settlement. Only at this point can you think about selling the vehicle since once all the plan fees are paid, you can request the certificate of deregistration of the pledge from the administrator.
With this document, the unit can now be sold because the lienholder provides a written certificate informing that the installments have been paid and that the vehicle is no longer collateral for the debt incurred.
The other possibility is that the vehicle has been awarded but the buyer does not want to continue with the bidding. In these cases, you may cancel and request a refund of the amounts paid for this concept in advance of the end of the plan.
The other situations that may arise in a savings plan contract are that the vehicle has not been awarded, and in those cases it can be waived by notifying the administrator of the decision or you can stop paying and be discharged due to late payment in the cancellation of monthly installments.
In both cases, the settlement of the installments paid will be made when the savings plan ends, deducting the fines corresponding to resignation or cancellation due to late payment.
For purchases financed by bank loans, the fees may also increase but this will depend on the type of financing system that was contracted when taking it out.
For these reasons it is important to consider when choosing the type of contract for the purchase what is the best option for each person’s financial situation.
And in cases where some type of financing is chosen, it will be necessary to decide with a calculator in hand the system of increase in installments that best suits your economy in the coming years. Sometimes it is a very difficult decision and that is why it is best to find out about all the options before hiring.
It is made clear that the specific case must always be evaluated and this note does not imply advice on the specific situation but rather general guidelines.
