How does the used car consortium work?

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Are you interested in buying a used vehicle, but don't know if it's possible to buy a used car through a consortium? Yes, it is possible! Common sense believes that to buy a car through a consortium it needs to be brand new, but that's not true.

Read our article, find out how the used car consortium works and don't make a mistake when closing the deal!

car consortium
How does the car consortium work ?
A consortium is a payment method similar to financing , in which you pay a rcs data qatar installment to a company. However, financially speaking, it is more advantageous.

To obtain financing, you must go to an administrator registered with the central bank and obtain a letter of credit for the chosen amount. Some banks also offer this service.

What are the advantages of a used car consortium?
The costs are, without a doubt, lower. Therefore, when choosing to take out a used car consortium, the interest rates paid by the customer will be lower. This is not the case with financing, where the total amount paid is often double the amount of the item purchased.

What are the negative points?
You have to be patient. Unlike financing, a used car consortium does not deliver the vehicle to you immediately, as your letter of credit needs to be drawn or you need to bid in an attempt to “auction” the vehicle.

If you have neither luck nor money, the car will only come into your hands after you have finished paying the installments.

What precautions should you take when closing a deal?
Be careful when you decide to purchase a letter of credit. Some companies do not allow the car you choose to be more than five years old, which may be the case for you when you are taking out a consortium for used cars. And also:

In some cases, the administrator may even require you to choose a used vehicle that is more expensive than your credit card. In other words, they “force” you to pay more fees to be able to purchase the vehicle;
Don't rush into a deal. Read all the clauses in the contract you are purchasing, research several companies, and don't rush;
Remember: purchasing a durable asset such as a car, whether new or used, requires a lot of patience to avoid making the wrong choice.