Ask questions about the Move Brasil Program The federal government this week expanded the Move APPs program, which offers low-interest financing for app drivers and taxi drivers. Now, the lower interest financing line also allows the purchase of used cars. ? Click here to follow the g1 Carros channel on WhatsApp The rules for used cars follow practically the same ones that have been in force since June: The vehicle must cost up to R$150,000; Pre-owned model must be electric or flex hybrid (gasoline-only hybrid models are not included in the program); Must have been manufactured from 2024; The automaker must be enabled in the Mover program. There are few cars with a flex hybrid system available for less than R$150,000 on the pre-owned market, according to the average price published by the Fundação Instituto de Pesquisas Econômicas (Fipe). In this range, hybrid versions of: Fiat Pulse: R$ 107,493; Fiat Fastback: R$ 117,746; Peugeot 2008 GT: R$ 146,415; Peugeot 208 GT: R$ 120,769. Electric models are more numerous, and the average price indicated by the Fipe table is: BYD Dolphin Mini: R$ 98,136; BYD Dolphin: R$118,540; GWM Ora 03: R$ 120,391; GAC Aion UT: R$ 128,790; Chevrolet Spark EUV: R$ 139,020; Geely EX2: R$ 113,882; Renault Kwid E-Tech: R$81,412. Volkswagen Polo, Chevrolet Onix Plus, BYD Dolphin and Fiat Pulse can enter the Move arte/g1 program Program faces barrier in credit approval Even with the injection of R$30 billion to finance the sale of vehicles with interest rates lower than half of those charged on the market, few cars were financed for app drivers and taxi drivers. As of July 14, the National Bank for Economic and Social Development (BNDES) reported that R$1 billion had been committed to the program, which represents just 3% of the total reserved to guarantee vehicle financing. g1 listened to experts and industry representatives to understand what is holding the program back. Everyone was categorical in pointing out the difficulty drivers had in obtaining credit approval. "The majority of drivers cannot afford it, otherwise we would be seeing this value explode, as was the case in previous programs. So, it is really the credit analysis that is preventing the program from progressing faster", pointed out economist Tereza Fernandez. She goes further and comments that, even with the reduction in interest rates, the price of the car is still high. “For an Uber driver to pay R$120,000 over so many months, it’s a hefty payment even with that interest,” he points out. "The risk is all with the financial institution. The risk of default is high. Financial institutions are not releasing credit, as this analysis is with them", says automotive consultant Milad Kalume Neto. He states that, of the nine financial institutions that operate in the program, only two are considered more “accessible”. Armando Castelar, researcher at the Brazilian Institute of Economics at Fundação Getulio Vargas (FGV Ibre), highlights that families arrive at financing already in debt, which reduces the number of people interested in renewing the vehicle. “Families are heavily in debt. Both debt and debt service, which is what families spend per month to pay interest and amortization, are at an all-time high," says Castelar. "I understand that there is a reluctance on the part of drivers to get into debt, as they are already heavily in debt as a consumer. How will institutions give credit to those who are already heavily in debt? They can offer you a debt, but if you are very in debt, will you take on this debt just because they offer it to you?" he adds. The difficulty in accessing credit for drivers was confirmed by Leandro Cruz, president of the Union of Workers with Intermunicipal Land Transport Applications of the State of São Paulo. Although he approves of the government's initiative, Cruz states that a considerable portion of drivers arrive "negative" to finance the vehicle, and the financial institution ends up not approving the operation. "The The biggest problem is that the worker who works a lot, who earns R$10,000 to R$12,000, is already negative. This worker is the one who is most able to finance, but is being denied when he asks for financing", Leandro pointed out. He also remembers that the guarantee offered by a pre-owned model is lower than that of a brand new model, increasing the costs that the driver may incur in a shorter period of time. "You have to carry out a very detailed precaution, as there are people who change the mileage, there are drivers who took a car from a rental company with four months of running in and blew the engine, leaving it three or four months without driving", reveals. The National Federation of Associations of Motor Vehicle Dealers (Fenauto) also approve the expansion of the federal government program, but do not celebrate. "It is important to have realistic expectations regarding its immediate effects. If the risk analysis criteria remain the same, a significant portion of these professionals will continue to encounter barriers to accessing financing," said Everton Fernandes, president of Fenauto. The concern is the same as that of the National Association of Financial Companies of Automakers (Anef). "We draw attention to two points: Credit will be subject to approval criteria of the financial institutions that are effectively the ones taking the risk. Therefore, it is reasonable to expect rejections of proposals due to an absolute lack of conditions to honor the credit. And in some cases they will require an entry to mitigate the risk of default", said Enilson Sales, president of Anef. According to data from Serasa, Brazil faces a high level of debt. In June this year, 83.7 million people were indebted in the country — 17.2% more than in 2023, when there were 71.4 million. This is the highest number in the historical series, which indicates an increase for 18 consecutive months. Sought by g1, BNDES stated that there were no problems at the institution