Motorcycle Credit Card: Understand How It Works!
Consortia have established themselves as one of the most sought after ways for Brazilians to purchase and invest in goods and services which are sometimes considered expensive, such as cars, motorcycles, houses and even international travel.
Although consortia are a well-known practice in the country, many people have doubts about it. So, let’s get the main questions about the motorcycle letter of credit. Read on and understand what the letter of credit is, how it works, and how you can use it.
What is a letter of credit in a consortium?
Consortia are offered and managed by administrators who open groups of buyers interested in acquiring the same good. Self-financed, with the payment of installments by the participants of the group, monthly draws are held to include one of the consortium’s shareholders with the letter of credit.
This award guarantees the participant the right to receive the good in question. However, remember that being drawn does not mean the total discharge of the consortium, since it is possible to be contemplated in the first draws. The obligation to installments continues until the end of the period for the whole group.
How does the motorcycle credit card work?
The motorcycle letter of credit works the same way as other consortia. That is, with the payment of monthly installments, the shareholders of the consortium will be drawn and, based on contemplation, can claim the good in question.
The letter of credit is not delivered in cash. After contemplation, the quotaholder has until the end of the consortium period to claim the motorcycle from the administrator. If the recipient withdraws from the acquisition, the administrator must deposit the value of the letter of credit in a savings that will be available for withdrawal for six months.
An important detail to note is that the quotaholder is usually awarded the letter of credit through monthly draws, but it is possible to bid higher on installments to try to be contemplated more quickly.
What can I do with the motorcycle letter of credit?
In addition to claiming the prize previously defined by the consortium, you can use the letter of credit in other ways. For example, if the quotaholder has been contemplated but has changed his mind about the model of motorcycle he wants, he can use it to buy a motorcycle of lower value and be reimbursed for the difference, which in turn can be used to pay off. debt or acquire other property.
The letter of credit can also be used to bid on a higher value pool. In addition, it can be validated as a credit to a new consortium to settle it faster. But it should be noted that the conditions for such use of letters of credit vary and depend on the rules under which the consortium administrator operates. For more information on motorcycle consortium, visit the Rodobens consortium store!