Selling a car in installments with a promissory note is one of the best ways to close a deal safely. This is because the promissory note literally acts as a promise that the buyer will pay the agreed-upon amount for the vehicle within a specific timeframe. 

For car dealerships, this becomes another way for the customer to close the sale and basically works like financing done by the buyer themselves. 

It sounds confusing, doesn't it? But it's actually quite simple. 

In today's article, we'll show you everything and more about buying vehicles with the famous promissory note. Let's go?

Although buying a car in installments with a promissory note is advantageous, there are still many people who don't even know what a promissory note is. 

A promissory note is actually an independent negotiable instrument that gives the issuer a direct obligation to pay the corresponding amount stated in the document. 

Essentially, it functions as a promise of payment. 

It would be more or less like selling on credit, but done correctly and with an official document confirming that the vehicle will be paid for. 

A promissory note for cars is issued by a debtor to the beneficiary, and to collect on it, the invoice is not required if the collection is made within the specified period. 

To issue a promissory note, two parties are required: the issuer and the buyer, who is responsible for creating a promissory note within the legal framework, and the seller, who will be the creditor of the instrument. 

From the moment a promissory note is issued, the buyer holds a credit instrument, and if they fail to pay on its due date, the note can be protested, giving the seller the freedom to pursue legal action through a bill of exchange and executive proceeding. 

However, legal action is only possible if the case is handled by a legally qualified lawyer. 

In cases involving amounts less than 20 minimum wages, a lawyer is not required. Simply go to a Special Civil Court – formerly known as the Small Claims Court. 

It's important to note that buying a car in installments with a promissory note is legal!

A promissory note is nothing more than a promise to pay a certain amount of money or even deliver something, such as a car, with a specific payment deadline. 

Once the necessary legal requirements are met, it becomes valid. 

Promissory notes for the purchase of vehicles are provided for by law. 

In Brazil, it is regulated by decree number 2,044 of December 31, 1908, and also by decree number 57,663 of January 24, 1996, starting from article 75. 

In other words, it's a legally sound business. 

At this point you must be wondering: But how is a promissory note made?

To do For a promissory note, certain requirements are necessary:

All of this can be done at a notary's office. 

Currently, many dealerships utilize their own vehicle financing when... sell a car, a motorcycle or any other type of vehicle. 

Financing is used because it's a positive way to use personal capital to finance cars and increase the chances of resale due to the ease of payment. 

There are several types of self-financing, and one of them is done with a promissory note.

This type of negotiation can be carried out by the dealership itself with the salesperson, as they are responsible for informing the customer of the steps to be followed before the financed purchase. 

By opting for installment payments on a promissory note, the dealer ends up gaining even more customers. 

Since it's not necessary to have the entire amount of money upfront to purchase the vehicle, the buyer can still make a down payment to reduce the amount to be financed, lowering the monthly payments and shortening the repayment period. 

And if the customer doesn't pay, the store can take legal action against the customer to recover the value of the car. 

It's a deal where nobody loses.

If the customer chooses to pay for the car in installments using a promissory note, they must then issue a promissory note for each installment, containing the exact amount to be paid and the due date.

Unlike a check, a promissory note establishes a direct relationship between the creditor and the debtor, and its creation must comply with all minimum requirements. 

The only thing to pay attention to when filling out the promissory note is to include the number corresponding to the installment. 

OK Remember that the buyer must sign all documents. 

In addition to making the purchase process much faster and more convenient for the customer, there are several advantages to financing a car through a promissory note. 

Let's check out what those advantages are?

The guarantee of receiving payment is the first of the advantages to pay for a car in installments with a promissory note!

If the bill is not paid, simply file a protest at a notary's office. 

This is the quickest way to receive the agreed-upon amount. This is because these government agencies have significant fiscal backing, guaranteeing that the outstanding amount will be received. 

If the debtor fails to make the payment, their credit will be negatively impacted by the relevant credit bureaus, such as SPC and Serasa. 

This causes the debtor to pay off the debt and avoid a series of personal problems related to credit. 

And last but not least, since promissory notes are legal in Brazil, it's possible to buy and sell vehicles using them without any... type of concern. 

This makes things easier for both parties involved in the deal, guaranteeing that they will receive the agreed-upon amount. It's that simple!

Now that you know how to buy a car in installments using a promissory note and are looking for a vehicle to call your own, using a promissory note to your advantage is a great option! 

A promissory note can even be a solution for those who want to buy a car and have their name on the SPC (Brazilian credit bureau).

And speaking of SPC (Brazilian credit bureau), we wrote a very special article showing different ways to buy a car even if your name is on the SPC list.

If you have a negative credit history and need to buy a car, whether for daily use or work, this article is for you. 

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