New Car Leasing in Brazil?

Are you able to finance a car here in Brazil? I'm currently in the process of applying for residency here and was also wondering if car financing is available for someone that works for a company in the US (working remotely), but lives here in Brazil.

@MA22 When I first arrived in Brazil about 6 months ago, I noticed that it seemed like everyone had new or almost new cars and for a country that was purported to not be a 1st world country etc., there was a lot more new cars than in the USA.  My wife said that it was easy to get a new car here. I don´t know the details (she is not that communicative lately) but I would go for the new car. I am not sure that leasing is that popular etc. here.

As far as your return trip, we purchased this car almost new from a neighbor so you may not have any challenge leaving it behind if you sell it when you go.

Roddie in Retirement

@ChicagotoSaopaulo We paid cash. You probably have to go through a lot of hoops to be in a position to have a bank finance your car.

@ChicagotoSaopaulo

Bom dia! I don't know yet.  This is my first foray into looking at buying or leasing a new car.  We have Brazilian family here, so I will be getting some more advise, but I was interested in the opinions and expertise of other Ex-Pats on here.  And I am not in a position to pay all cash, so we will see. 

@MA22

I ran across this post searching for the exact same thing. I am also in Joao Pessoa, as crazy as it is to run across this, and you also be here as well.

It seems like people have to put a large amount of cash down here, or make large payments. I am just looking into it all, but I know its expensive and the terms of loans are not quite the same as in the U.S.

I also plan to ask my brother-in-law, and he is pretty knowledgeable on this subject. He also changes cars pretty frequently it seems.

I will gladly reply here with my findings as well!

@HURTCHRIS

Hi Chris!  My post was last year in 2023. Since then, I have test driven quite a few cars here in JP to see what I like or don't like in the crazy traffic here. Lol... We've been renting off and on from Localiza, Unidas, Movida, etc.  Very expensive. 

For purchases, Yes, they require  lot of Entrada (down payment) for any purchases.  so, we decided to pass on that.  They have something here called Sign and Drive "Assinatura."  12, 24 or 36 months - and you choose the monthly mileage you want..,  You also choose the make and model (current year 2024) from a list of choices and then wait a couple of months for it to arrive. 

That's the Brazilian version of a Car lease.  Toyota has Kinto, which is their Lease division. I think Jeep and Fiat also have their own as do Unidas and Localiza.   

@MA22

Right on man, thanks for the info! My sister in law needs a new car, but she drives very little. I was wondering if a lease for her would make more sense. She has a 2014 HB20 that is getting up there and needing repairs more and more, so its time for a refresh. Its just expensive to replace it. We use her car while we are her emost of the time.

We rented from Unidas the other day since we were traveling to Bananeiras and it was a good experience. But for long term, we need a better car eventually.

But I am in the same boat back home. I'm driving my 14' Pathfinder until the wheels fall off, or until interest rates go back to sub normal levels LOL!

At least Groceries are cheaper here!

I made a deal here with a local small rental car company at the airport .  I pay about $300-350 usd per month but we rarely drive as the small town I live in everything can be  a leisurely  walk 20 min away. mainly use car to visit  beaches and grocery shopping . I was thinking about checking out the more establised rental car companies for a newer model and better choices .

@MA22 great info thanks

    Boa tarde amigos.
As someone who has both bought and Leased New vehicles in the US, do Car Dealers offer this type of financing of new vehicles here in Brazil? We've had good success with Saturn (long time ago!) & Toyota in the US. We found it fit our budget better to lease rather than buy, and we always had at least one new model vehicle every 3 years!

Since I am here on a Vitem XIV Retirement Visa, with uncertain renewal in the future (2024), we are thinking it might be better to do a lease rather than to buy.

We currently are renting from Localiza on a monthly basis, but this is very expensive compared to what I was paying for our leased NEW car in the US.

Any thoughts or suggestions are appreciated!

Muito obrigado!
   

    -@MA22

There is no leasing here.

Either you meet their terms, or else you get into a Consorcio, which is pretty much a lay-a-way plan before you get your new car. You can antecipate your purchase on a bid, where you put up money to move up faster on the queue. if you beat other comers, you get the car keys.    It beats banking rates.

Or else, you finance, mostly on a two year note, with a steep down payment.

Just walk into a Dealership lot, and the first thing you will notice is that there isn't a lot of inventory here. The manufacturer holds inventory, not the dealership. And for model alocations, that's why we have brokers here. 

All the big financial companies from auto makers, Ford Red Carpet, GMAC, they never made here.

From time to time, GM makes announcements as buying directly, but it is done only where they have plants.  Sao Caetano do Sul-SP, and  outside Porto Alegre, Rio Grande do Sul. 

@sprealestatebroker

Bom dia sprealestatebroker:

Thanks for your reply.  Actually I wriote that originally 11 months ago, last May, 2023.  Since then, as I have posted above, I have learned many things about cars and financing here.  THERE IS actual leasing here; they call it Assinatura.  Basically a lease.  You choose the make and model from a list of current 0km cars, choose the length of the term, 12, 24 or 36 months, and how many miles per month you want, 1k, 2k, 3k, etc.  NO ENTRADA and all insurance is included.   Could be a good deal compared to buying and financing. BUT, compared to what I was paying in the US for leases for many years on Saturns and Toyotas, it's still very expensive...

    @sprealestatebroker
Bom dia sprealestatebroker:

Thanks for your reply.  Actually I wriote that originally 11 months ago, last May, 2023.  Since then, as I have posted above, I have learned many things about cars and financing here.  THERE IS actual leasing here; they call it Assinatura.  Basically a lease.  You choose the make and model from a list of current 0km cars, choose the length of the term, 12, 24 or 36 months, and how many miles per month you want, 1k, 2k, 3k, etc.  NO ENTRADA and all insurance is included.   Could be a good deal compared to buying and financing. BUT, compared to what I was paying in the US for leases for many years on Saturns and Toyotas, it's still very expensive...
   

    -@MA22

Localiza, the car rental company has it. 

Other Leasing companies, i would stay clear of them.  If they go under,  which is likely to happen ( consumer financing here works for appliances, and the delinquencies are high, car financing, it's even worse ) , you are on a pickle. 

@sprealestatebroker

I would add the car makers and any other large car rental company to the list , such as Unidas. 

Cars are a very expensive thing in brazil. l dont plan on owning one

    Cars are a very expensive thing in brazil. l dont plan on owning one
   

    -@KenAquarius

I don't either but...

The base models you see on entry level nameplates are competitively priced on a dollar basis.  From VW, Renault, Fiat, GM. About R$ 85,000 for a new one.  That's USD 18,000.

A stripper Renault Kwid is listed at R$ 72.640. That's under USD 15,000!

Name a model in the US you can get for this money.  And Americans are clamoring to have anything under that price bracket.

Brazilians complaint about anything and everything.

@sprealestatebroker l think the easy credit here in the USA makes it easy for the manufacturers to get away with high priced vehicles. Any fool with a job at McDonalds can get approved for way more car than they can actually afford. Along those same lines l read that about 2.2 million vehicles get repossessed every year.

    @sprealestatebroker l think the easy credit here in the USA makes it easy for the manufacturers to get away with high priced vehicles. Any fool with a job at McDonalds can get approved for way more car than they can actually afford. Along those same lines l read that about 2.2 million vehicles get repossessed every year.
   

    -@KenAquarius

They do have repos here too.  Quite high numbers. 

Credit Lyonnais, opened a consumer lending subsidiary and got burned badly. They sdid shut it down .

Most consumer lending outifts here come and go.

Any fool with a job at McDonalds can get approved for way more car than they can actually afford.
   
    -@KenAquarius

Perhaps the workers at McDonald’s need to be paid more?

Alan