Buying a car continues to be one of the greatest desires of Brazilians. However, with the high cost of cars and economic instability, financing a car in Brazil has become the main alternative to make this goal possible.

The problem is that, with so many financing options on the market, different interest rates, score requirements and bureaucracy, many people end up feeling lost — or worse, making hasty decisions that compromise their budget for years.

In this guide, we will explore the main types of financing, tips for those with a low score, step-by-step instructions for simulating and contracting safely, as well as presenting the main financing companies in the country.

So, keep reading!

Financing a car means obtaining credit from a financial institution to purchase a vehicle, new or used, and pay for it in installments.

The finance company pays the full amount to the seller (dealership or individual) and you return this amount in monthly installments with interest.

During the contract, the car usually stays alienated — that is, legally linked to the institution until all installments are paid. This gives the bank security that it will be able to recover the asset in the event of default.

It's like a "loan with collateral", but in this case, the car itself is the collateral. The bigger the down payment and the shorter the term, the better the interest conditions tend to be.

CDC is the most common form of vehicle financing in Brazil. In this type of financing, the bank or financial institution lends the amount for the purchase of the car, and the customer pays in fixed installments.

The vehicle remains alienated to the institution until the end of the contract. Advantages include the possibility of financing new or used vehicles and flexibility in payment terms.

In leasing, the financial institution purchases the vehicle and “rents” it to the customer for a set period. At the end of the contract, the customer can choose to purchase the vehicle, return it or renew the contract.

This modality may offer lower interest rates, but the vehicle only becomes the customer's after full payment.

The consortium is not a traditional financing option, but an alternative for those who are not in a hurry to purchase a vehicle.

In this scheme, a group of people contribute a monthly amount, and each month, one or more participants are selected by lottery or bid. The main advantage is the absence of interest, although there are administrative fees.

Many people believe that having a low credit score is the end of the line for those who want to finance a car. But that's not true.

Although a low score (below 600 points) makes it more difficult to get good conditions, it is possible to negotiate with some institutions that are more flexible or offer products aimed at profiles with restrictions.

First of all, analyze your financial situation. Do not commit more than 30% of your monthly income to financing.

Determine whether it will be new or used and research prices on different channels. Include documentation, insurance and maintenance costs in your planning.

Use bank and financial institution simulators to compare options. Consider:

You will need:

Some approve immediately; others may take a few days. After approval, read the contract carefully.

Once everything is approved, just sign, pay the deposit and schedule the vehicle pick-up.

Choosing the right institution to finance your car can be as important as choosing the vehicle itself. After all, payment terms, interest rates and flexibility in terms vary greatly between financing companies.

Knowing the main players in the Brazilian market helps you make a more informed and strategic decision.

Below, you can check out the main financial institutions that operate in the vehicle financing sector in Brazil — each with its own particularities, advantages and ideal customer profiles.

With a strong presence in the public sector and a broad customer base, Banco do Brasil offers specific credit lines for financing new and used vehicles.

One of the institution's distinguishing features is the possibility of financing up to 100% of the vehicle's value, with terms that can reach 60 months.

Approval can be made easier for those who already have a relationship with the bank, such as a salary account or positive credit history. In addition, it is possible to do the entire process online, from simulation to hiring.

Banco do Brasil usually offers competitive interest rates, especially for public servants or customers with a good banking history. For those seeking security and tradition, it is an excellent option.

Caixa is known for its affordable conditions and programs that aim to serve low and middle-income consumers. Caixa's auto credit line allows you to finance new and used vehicles and even motorcycles.

One of the attractions is the interest rates that start from 1,49% per month, and the possibility of financing up to 80% of the vehicle's value.

For Caixa account holders, there are special conditions and an easier credit analysis process. The institution also allows you to start paying within 60 days after signing up.

It is ideal for those who want financing with affordable installments and institutional security.

With a broad service network and a strong presence in dealerships, Bradesco is one of the leaders in the vehicle financing segment. The institution offers financing for new, pre-owned and used vehicles, with flexible terms that can go up to 60 months.

One of the differences is the possibility of starting to pay the first installment only after 60 days of signing the contract.

Bradesco also provides specialized service for individual and corporate customers, in addition to financing programs with reduced down payments, facilitating access to credit.

For those who value a traditional process, but with good capillarity, the bank is a great choice.

Santander stands out for its partnerships with large dealership networks and digital platforms, which allows customers to take out financing directly at the point of sale or online.

The institution offers financing with or without down payment, terms of up to 60 months and rates that vary according to the customer's profile.

One of Santander's great attractions is the grace period of up to 120 days for payment of the first installment, which can be interesting for those who need a breather at the beginning of the contract.

Furthermore, customers with a good relationship with the bank have access to special conditions, including reduced fees and ease of negotiation.

Itaú is also among the largest vehicle finance providers in the country, offering credit for both new and used cars, including vehicles purchased from individuals.

The institution stands out for its digital 100% process, from simulation to electronic signature of the contract.

Itaú customers can sign up directly through the app or internet banking, with exclusive conditions for those who have a salary or investment account with the bank.

Credit analysis is usually quick and personalized, taking into account the customer's history with the institution. Itaú also stands out for its after-sales support, which provides greater security throughout the contract.

BV is one of the most traditional financial institutions in the Brazilian automotive sector and has a strong presence in stores and dealerships throughout the country.

It finances new and used cars, with flexible terms and the possibility of payment in up to 60 months.

BV's biggest differentiator is the speed of its credit analysis and the fact that it accepts vehicles up to 15 years old, which makes it one of the few financing companies that cater to this profile.

In addition, the institution offers an intuitive digital platform for simulating and monitoring financing.

Although best known for the insurance sector, Porto Seguro also provides financing, especially for customers who already have car insurance with the company.

One of the biggest attractions is the package that combines financing with insurance, allowing for considerable savings.

The company offers competitive terms, attractive rates for customers with good credit histories and personalized service.

It is an advantageous option for those who are already Porto customers or are looking to combine financial services with vehicle protection.

Creditas is a fintech that has stood out for offering secured credit, known as auto equity, in which the customer's own car is used as collateral to obtain financing with rates much lower than those charged by traditional banks.

This model is ideal for those who want to purchase a new vehicle or for those who want to refinance their current car.

The process is completely digital, fast and with very competitive rates, especially for those who have a good payment history and a vehicle with a reasonable market value.

When deciding to finance a car, in addition to choosing the best payment method, it is essential to know what type of vehicle meets your needs in everyday life.

The good news is that the Brazilian market offers options for all tastes and budgets — from compact and economical models to more robust SUVs and even innovative electric cars.

Know the main types of cars available for financing can help you make a more strategic decision, balancing comfort, consumption, utility and cost-benefit.

Hatchbacks are the most popular compact cars in Brazil, especially among those who are buying their first vehicle or want to save on fuel and maintenance.

Because they are smaller, they are perfect for those who live in big cities and need a car that is easy to park and agile in urban traffic.

Among the most financed hatchbacks in the country are models such as the Fiat Argo, Hyundai HB20 and Chevrolet Onix.

These options are highly sought after by app drivers, students and small families, precisely because they offer a good balance between affordable price, low consumption and basic technology.

Sedans are longer cars, with larger trunks and generous interior space — ideal for those who travel frequently or value comfort in their daily lives.

They are perfect for larger families or for those who need more space for luggage, car seats and other items.

Among the most popular sedans for financing are the Fiat Cronos, the reliable Toyota Corolla and the Hyundai HB20S, sedan version of the famous hatchback.

In addition to space, these vehicles tend to have a more refined finish, which pleases those looking for a little more sophistication without breaking the budget.

SUVs have become popular among Brazilians due to their robustness, high ground clearance and spacious interior. They are ideal for those looking for an imposing car that provides safety and adapts to different terrains, such as dirt roads, coastal areas or rural areas.

Some of the most funded models in this category include the Hyundai Creta, Fiat Pulse and Chevrolet Tracker. These cars are also becoming popular among young families and couples who enjoy weekend trips or outdoor sports.

SUVs tend to be more expensive, but they also offer more compact and affordable versions, with interesting technological packages that justify the investment.

And with good financing, it is possible to obtain a model with excellent cost-benefit.

Although they still represent a small share of the market, electric cars have been growing consistently in Brazil — and financing this type of vehicle can be a long-term bet, especially for those who want to save on fuel and maintenance in the future.

The brand BYD has been standing out as a reference in the electrical sector with models such as the BYD Dolphin, which has become one of the best-selling electric cars in the country.

Another highlight is the Hyundai Kona EV, for those looking for an urban electric SUV with more autonomy and on-board technology.

Although electric cars still have a higher entry cost, many financial institutions already offer special conditions for financing these models, recognizing their potential for sustainability and savings in the long term.

Financing a car can be a smart choice — as long as you do it with planning, security and awareness.

By understanding how the types of financing work, knowing the market options and preparing yourself financially, you can avoid unpleasant surprises and acquire your car with peace of mind.

Now that you're up to speed, how about taking the first step? Access reliable simulators, compare the conditions and start planning today to make your dream come true on four wheels.

And if you are still evaluating whether It is more worthwhile to finance or lease a car, we have additional content that will help you with this choice. Access the article below and find out everything you need to know about car rental in Brazil.