Main characteristics of the savings plan for the purchase of cars
The savings plan is a finance methodology that consists of updatable instalments, with no interest, for the purchase of a 0km vehicle.
The system is developed through the formation of closed groups of people (natural and/or legal persons), made up by the double of participants to the number of instalments laid down in the contract.
For example, in a plan of eighty-four (84) instalments, the group will be made up by one hundred sixty-eight (168) persons and in a plan of one hundred and twenty (120) instalments, the group will be made up by two hundred and forty (240) persons.
To be part of the same group, those interested must have chosen the same model, number of instalments and characteristics of the plan offered by the administrator.
The members of a group do not know one another, but they act in a cooperative way since, through the contribution of the instalments they make monthly, the saving fund that enables the acquisition of two vehicles is set up.
To take part in a savings plan, those interested must go, exclusively, to an authorized car dealer or official agent of any of the brands that offer this modality.
It is recommended to consult the official page of each administrator to obtain information on the plans and models offered as well as the contract modality, which can also be carried out digitally.
The adhesion contract that must be signed, as well as the current annexes, have already been authorized by the Inspección General de Justicia, which is the control body of the activity.
The authorized car dealers and the official agents have the obligation to provide guidance and explain in detail the characteristics of each product.
Once the group has been formed, the participant will be called saver and will start paying the instalments of their contract to, in this way, be able to participate in the acts of award.
The act of award is carried out monthly. It is an administrative procedure audited by the Inspección General de Justicia, with the presence of legal representatives of the administrator and the intervention of a notary public. Every saver can witness the procedure.
There are two modalities to become awarded:
1) Through tender: each member of the group, voluntary, offers to advance instalments. The saver that proposes the largest amount is the one who is awarded the vehicle.
2) Through raffle. Each saver is assigned a number when the group is formed. For example, in a group of 240 people (120 instalments), a number will be assigned to the group and a different one to each member, from 000 to 239. In this way, and through only one raffle, all the groups will participate. The “ball” that comes first is the raffle winner. If that number has already been benefitted in previous acts, or belongs to a client who has withdrawn from the group, the process continues with the next number in the order and so on.
It is important to take into account that a required condition to participate in the act of award is to keep the payments up to date and have the instalment from the previous month paid in a timely manner and due form.
The minimum amount of the tender corresponds to the amount of one instalment without extra fees and the maximum amount is the total saving plan debt.
Once awarded and if the contract is not completely cancelled, the saver will have to meet the credit requirements established by the administrator and sign, because of the due instalments, a pledge contract with warranty and continue paying the instalments until the end of the plan. Besides, the saver will have to pay for the corresponding award right.
It is important to note that the saver has the possibility of advancing instalments in any stage of the plan, taking into account that if done during the saving stage, it can hinder the possibilities in case of wanting to participate in future acts, since the advanced instalments cannot be used to tender.
The saver enters the plan choosing a certain model. However, when awarded, they can change the model according to the availability and restrictions that exist at the time, for example considering the impossibility of importing a certain unit.
The difference in price must be paid in cash.
The instalment for the vehicle is not fixed. It is updated every month according to the price list informed by the automotive terminal.
The pay stub includes different concepts which can be the following:
- Aliquot: resulting from the division of the price of the vehicle by the amount of instalments of the plan.
- Administrative expense
- Subscription right
- Life insurance (for natural persons)
- Taxes, rates or levies, as applicable
- Car insurance. Once the unit has been handed over
There are plans called of Reduced Instalment, in which the saver saves a percentage of the vehicle. For example, plans 80/20 – 70/30, etc.
In a plan 70/30, the client pays 70% of the price of the unit. When they are awarded, through any of the modalities, they must pay the remaining 30% at that moment, considering the current price list.
The authorized car dealer or official agent is only entitled to charge the first instalment and the award right. The remaining instalments, anticipated cancellations and any other concept related to the plan must be paid to the accounts of each administrator.
The saver can withdraw from the plan whenever they desire to do so (provided they are in the saving stage).
The paid instalments, deducted the debts that may exist, will be refunded at the end of the term of the contracts.
These are the main characteristics of the functioning of the savings plan. Those interested must conveniently consult authorized car dealers or official agents from the automotive companies, consult the administrators’ web pages and read the adhesion contract thoroughly.
The payments must never be made to the account of a private person. The authorized car dealers or official agents are only entitled to charge the first instalment, the award right (according to the policy of each administrator) and the charges that correspond to the handover of the unit and the constitution of the pledge, if applicable.
CAPA is committed to the transparency of the system.
The administrators and automotive terminals are not responsible for hirings, or payments made outside their dealers or official agents networks.