Simulate a secured loan using your vehicle (vehicle refinancing). Enter the vehicle's FIPE value, model year, and desired loan amount to calculate installments using the PRICE system, IOF, CET (Effective Total Cost), and available credit limit (LTV) for your vehicle.
Quick Profiles:
Recently Used (2023)Semi-New (2021)Older Used (2018)
Installment Amount
$ 0.00
Maximum Credit (80% FIPE)
$ 0.00
LTV (Credit / FIPE)
0.0%
Total Interest
$ 0.00
CET (Effective Total Cost)
0.00% p.a.
Total Paid
$ 0.00
Total IOF
$ 0.00
TAC
$ 0.00
LTV (Loan-to-Value) Indicator
Safe60%80%High
LTV: 0.0%
Credit vs. FIPE Value
Total Cost Composition
Advertisement
AdSense In-Content 970x250
Payment Schedule Summary (PRICE)
Month
Installment
Interest
Amortization
Outstanding Balance
Advertisement
AdSense In-Content 970x250
What is Vehicle Refinancing?
Vehicle refinancing (also known as secured loan using a vehicle or auto loan) is a type of personal loan where the vehicle owner uses their car, motorcycle, or truck as collateral (fiduciary alienation) to obtain a loan from a financial institution.
Different from conventional vehicle financing (CDC), where the goal is to purchase a vehicle, in vehicle refinancing, the owner already has the vehicle and wants to obtain money for other purposes: paying off expensive debts, investing in a business, renovating their home, or any other purpose.
How does LTV (Loan-to-Value) work in Vehicle Refinancing?
LTV (Loan-to-Value) is the ratio between the loan amount requested and the vehicle's market value (usually based on the FIPE table). In the Brazilian market, most financial institutions limit the loan to between 70% and 80% of the vehicle's FIPE value.
Example: if your car is worth $ 60,000 on the FIPE table, the maximum loan amount available will be between $ 42,000 (70%) and $ 48,000 (80%). The lower the LTV, the better the conditions offered by the bank (lower rates and easier approval).
Vehicle Depreciation: An Important Risk
Different from properties, vehicles are assets that lose value quickly. A new car can lose 15% to 20% of its value in the first year and continues to depreciate in subsequent years. This means that the value of your collateral decreases over time, while the loan balance may remain high in the first months (in the PRICE system, interest is higher at the beginning).
Therefore, it is essential to consider the vehicle's age when contracting a refinancing loan. Newer vehicles offer a better collateral ratio, while vehicles with more than 5 years may have limited credit and higher rates.
IOF and TAC: Additional Costs of Refinancing
In addition to monthly interest, vehicle refinancing involves two important costs:
IOF (Financial Operations Tax): Composed of a fixed rate of 0.38% on the operation amount, plus 0.0082% per day for the term (limited to 365 days). The IOF is added to the loan balance and generates additional interest.
TAC (Credit Opening Fee): An administrative fee charged by the financial institution when contracting the loan. It usually ranges from $ 300 to $ 800, with $ 500 being the average market value.
Both costs are incorporated into the calculation of the CET (Effective Total Cost), which represents the loan's real annualized cost, including all expenses.
When is it Worth Refinancing a Vehicle?
Vehicle refinancing can be advantageous in specific situations:
Replacing expensive debt with cheaper debt: If you have debts on your credit card (12% to 15% per month) or overdraft (8% to 10% per month), vehicle refinancing with rates of 2% to 3% per month can represent significant savings.
Capital for investment: If you have identified a business opportunity with a return higher than the loan cost.
Financial emergencies: When there is no emergency fund and the need is urgent.
Warning: Never refinance a vehicle for unnecessary consumption. If you cannot pay the installments, you may lose the vehicle.
Frequently Asked Questions about Vehicle Refinancing
In financing (CDC), you are purchasing a vehicle in installments: the bank pays the seller, and you are left with the debt. In refinancing, you already own the vehicle and use it as collateral to obtain a loan in cash for any purpose. Refinancing rates are usually slightly higher than those of conventional CDC, but significantly lower than personal loans or credit cards.
Yes. Since the vehicle is fiduciarily alienated to the bank during the contract, in case of prolonged non-compliance, the financial institution may request the seizure and auction of the vehicle to recover the granted credit. Therefore, it is essential that the installments fit comfortably within your budget. It is recommended that the commitment of income with all debts does not exceed 30% of the net monthly income.
Generally, financial institutions accept cars, motorcycles, trucks, and utilities that are paid off (without existing alienation), have regular documentation (without serious fines or judicial restrictions), and have a maximum age that varies according to the bank. Most banks accept vehicles with up to 10 years of manufacture, with newer vehicles offering better conditions. The vehicle must be in the name of the credit holder.
The maximum term varies according to the institution, but it is usually between 36 and 60 months. Unlike home equity (loan with real estate collateral), which can reach up to 20 years, vehicle refinancing has shorter terms because vehicles depreciate faster. The minimum loan amount usually ranges from $ 5,000 to $ 10,000, and the maximum is limited to 70%-80% of the vehicle's FIPE value.
Yes. The CET (Effective Total Cost) is the annualized rate that encompasses nominal interest, IOF, TAC (Credit Opening Fee), and any other contract charges. By law, financial institutions are required to inform the CET before signing. When comparing proposals from different banks, always use the CET as a reference, as a lower monthly rate may hide additional costs that increase the operation's real cost.