How to finance a car in 2025
If you want to know how to finance a car in 2025I've been through this saga myself - and I'm going to explain it all to you here, without any further ado.
Buying a car in Brazil is hard?
Did you know that the average price of a new car in Brazil went from R$ 120,000 in 2024? Well, it's not easy for anyone. Even though popular models are making a comeback, prices are still high, and not everyone has that much money in their pocket. That's why financing is still the most popular option for Brazilians. But don't worry, you can do it without falling into a trap.
In this article, I'll show you how to finance a car in 2025 in the most intelligent way possible. We'll talk about rates, banks, scores, down payments, terms and much more - all in clear, light and straightforward language. Shall we?
Why is financing still popular?
Financing a car may seem expensive, but it's one of the few affordable alternatives for those who want to get off public transport, have the freedom to come and go, or even work with the vehicle (like Uber, 99 or deliveries).
Advantages:
- You can leave with the car even if you don't have the full amount.
- Many institutions accept small entrance fees.
- You can choose terms and installments that fit your pocket.
Disadvantages:
- High interest rates, especially for those with low credit scores.
- The total value of the car can double at the end of the contract.
- It can turn into debt if not planned properly.
Due to all this, it is essential to understand the process and make good choices right from the start.
Steps to finance a car in 2025
1. Find out your credit score
First of all, find out your credit score. In other words: it's what defines whether banks will see you as a good payer or not. You can check it for free on sites such as Serasa.
Tip: if your score is below 600, try to negotiate debts before seeking financing.
2. Do online simulations
Nowadays, you can simulate the financing of a new or used car on sites such as:
These simulations show the amount of the down payment, installments, term and fees. That wayYou can see what fits into your budget.
3. Set the input value
However many finance companies accept a down payment of 10%, the more you give, the better. This is because interest will be charged on a smaller amount.
Example:
- R$ car 80 thousand
- R$ input 24 mil (30%)
- Finance R$ 56 thousand → Lower installments and less interest!
4. Choose the ideal deadline
In order to to keep the installment affordable, the term can be up to 60 months. However, longer terms increase interest rates.
In summary:
- Short term = higher installments, but less interest.
- Longer term = smaller installments, but more expensive overall.
5. Compare interest rates
The bank where you have an account doesn't always offer the best rate. That's why in additionIt's worth looking at financial institutions, fintechs and cooperatives.
In 2025, the average rates are between 1.29% to 2.15% per month, because depend on your profile and the institution.
6. Keep an eye on the CET
The Total Effective Cost (TEC) includes all the financing charges: interest, IOF, fees and insurance. In other words, it shows how much you will pay for real at the end.
IndeedThe CET should be evaluated more carefully than the interest rate alone.
Golden tips to avoid falling into traps
- Avoid financing 100% of the value. It's more expensive and risky.
- Always negotiate. Ask for discounts or better conditions.
- Read the contract carefully. Even if it's boring, it's essential.
- Avoid tied sales. Insurance, extended warranty, tracker... nothing can be compulsory.
New vs. used car financing
New car:
- Interest is generally lower.
- Factory guarantee.
- Higher market value.
Used car:
- Lower price.
- More options for less money.
- Be careful with maintenance and history.
ThereforeHowever, it's worth analyzing the use you'll be making of the car. If it's for work, for example, a new car with low mileage may be more advantageous.
Fintechs and online credit in 2025
As in other sectors, the financial market is becoming more digital. Fintechs such as Creditas, Zippi e Quick Loan offer practical and competitive solutions.
On the other handIt is essential to check that the company is reliable, has a good reputation on Reclame Aqui and is authorized by the Central Bank.
Final considerations: is financing worth it?
Finally, like a good bar conversationI'll tell you: financing can be a great way to go, as long as you plan it properly.
Step-by-step summary:
- Check your score.
- Do simulations at different institutions.
- Add a reasonable starter.
- Compare CETs, not just interest rates.
- Read the contract before signing.
- Assess your real needs.
After allno one wants to be held hostage by a parcel, right?
If this content has helped you, how about sharing it with a friend who is also on a car-buying mission? Oh, and comment here: what is the biggest challenge you face in financing your car in 2025?
