One of the differentials of the consortium system is its flexibility when contemplating. The freedom to choose the good or service is the essence of the modality, which differs it from other types of financing.
When discussing freedom of choice, Friedrich Hayek, an Austrian economist and philosopher, used a metaphor about traffic laws, whose content pointed out that traffic rules that indicate which way to go on a public road, thus organizing the flow of vehicles so that no one is harmed in possible accidents.
In the consortium system there are also rules that all consortium members must follow so that none of the participants in a group is harmed, and that everyone achieves their objectives, which may be different.
“By drawing a parallel, considering the norms of each segment where it is present, it is possible to observe that this is how it works”, says Luiz Antonio Barbagallo, economist at ABAC Associação Brasileira de Administração das Consortios. “By the way, this is another one of its differences to highlight”, he adds.
“Even if originally the participant has acquired a quota for the acquisition of a new vehicle”, explains Paulo Roberto Rossi, executive president of ABAC, “he may, throughout the plan, decide whether he still wants to use the credit for this purpose, or choose for a semi-new”.
In this modality, it is also possible to use part of the credit to pay financial obligations, linked to the good or service, observing the total limit of 10% (ten percent) of the value of the credit subject to contemplation, in relation to expenses with transfer of ownership, taxes, notary records, registration institutions and insurance, in accordance with BCB Circular No. 3432/2009.
For Cíntia Priscila Ianowski, 28, a vehicle protection consultant in Jaraguá do Sul, Santa Catarina, the initial desire was to have plastic surgery. After joining the services consortium and being awarded, she changed her first objective and used the credit to renovate her father’s house in Joinville.
Cíntia explained that, “after researching the various types of financing available on the market and finding that the interest rates were high and making the debt very expensive, she opted for the consortium fee, which would only add a small administration fee”. Married to Alexander, who works in construction, she is the mother of three children aged 13, 8 and 4. After understanding well the possibilities offered by the consortium system, thanks to the administrator’s explanations, she already signed up again. “Thinking about owning a home, I signed up for a quota with the real estate consortium and took out a R$150,000 loan. Currently, I pay the installment of the consortium and the rent of the house where I live, in addition to that quota of the service consortium ”, she adds.
When defining the good moment experienced, he recommended the modality, clarifying that “consortium is a hell of a business. It is worth it because it serves all types of goods and services at very low costs”.
The choice within the consortium rules
In accordance with current regulations, the consortium member may, in the motor vehicle segment, opt for a motorcycle, vessel, or heavy vehicle such as a truck or agricultural machine, such as a tractor, for example. This means that there is a wide variety of options, always considering the motor vehicle sector.
In the real estate segment, the choice can be between urban, summer, industrial, commercial, or even land and larger areas. Even without specifying, when joining, the participant, when defining the desired credit, already has in mind what he intends to acquire at the time of contemplation.
Thiago Souza Carbonera, 27 years old, single, graduated in law with a vocation for sales, lives in Londrina, Paraná, signed up for a R$50,000 motorcycle quota in order to have a high-capacity motorcycle for personal use. However, at the time of contemplation, he considered the possibility of starting a new motorcycle leasing business. By changing the initial objective, he chose and acquired four motorcycles of smaller values, leasing them with the purpose of increasing his income. In this way, he now has the financial capacity to meet his monthly quota payments with extra income for new investments and expansion of commercial activities.
Carbonera’s decision shows how it is possible to use the consortium system for economic and business investment purposes. In this case, it was motorcycle leasing, but there are other possibilities. In real estate, there is the possibility of income from rents.
When commenting on the option for the consortium, Carbonera explained that “the costs are lower and that there is no interest on financing, which makes the final result more expensive, even doubling the principal amount”.
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