With tight credit and high interest rates for financing, selling through consórcios, or pre purchase financial pools has become an advantageous option for the purchase of goods in Brazil. The mode offers everything from home to home appliances, and the discounts reach 40%.
Very common in the 1980s and 1990s, the consortiums bring together a group of people who pay a monthly fee to a fund that includes some syndicated by lot with the credit in the value of the contract, to all be met. That is, the interested guard the money to buy without finance and can negotiate discounts and other privileges.
Demand for consortium grows in the market at the time when the average rate of credit interest for families rose in May. The index reached a record 57.3% annually, the highest in the time series of the Central Bank (BC), started in 2011.
At the same time he has been hit a record of consortium for the fourth consecutive time this year. In April, there were 6.4 million. The real estate sector achieved growth of 20% in the first four months of 2014 are 65 500 new shares against 54,700. In the light vehicle sector, the increase was 7.4%, indicating 318,000 new members this year, about 296,000 last year.
Sales broker Anderson Borges contributes to increase that number. He pays four consortia: a motorbike (R$ 250), a car (R$ 400), land (R$ 300) and an apartment (R$ 1000). The fees amounted to R$ 1950. “I have already been awarded the apartment and have put the property to rent,” he says.
Consórcio – a purchasing pool through which a group of people pay monthly installments on a certain item (e.g. a car) so that every month the group can afford to buy one of the items, which is then awarded by draw to one of the group members. There is a fee charged by the pool administrator but no interest.
HOW TO ENTER AND HOW DOES THE SYSTEM WORK
1. How do I join a consórcio?
– Choose an administrator, make plans, make adherence to the group with the best terms and values, read the agreement, join the assemblies that distribute the loans. The winners are chosen by lottery or bid (anticipation of benefits). Use your credit to purchase the good or service.
2. What is a consortium manager ??
– Is the management plan. It charges a fee for the service.
3. What is assembly?
– Meeting for the contemplation of the consortium, service and the provision of information.
4. How contemplation work?
– Through raffles and “lances”, made in monthly meetings of consortium groups.
5. What is bid?
– It is the right of the consortium running for contemplation upon prepayment of installments offered during the meetings of the groups. Depending on the group’s cash availability, the highest bidder will be awarded, according to the contract.
6. Letter of Credit?
– This is a billing order issued by the Administrator, with which the consortium will acquire the goods or services of their choice. To do so, please provide the guarantees required by the Administrator, in order to preserve the interests of the consortium members themselves.
With info from http://odia.ig.com.br/noticia/economia/2015-07-04/em-tempos-de-juros-altos-consorcios-viram-estrelas.html