Savings Club: The Best Way to Finance your Next Vehicle
Avatar photo Written by Adriano Marques

2 min read • Published March 12, 22


Savings Club is a simple, easy, and secure way to save for your car. We have built a system that helps you reduce the cost of buying a new car through group savings.

Savings Club offers a type of auto financing that is also known as a Rotating Savings and Credit Association (ROSCA). While not currently very common in the United States, countries all over the world use ROSCA financing. For example, ROSCAs have been common in Brazil for over 60 years. Currently, one-third ‌of all car purchases in Brazil use this type of financing.

How Does Savings Club Work?

Individuals join a Club with a common goal in mind – in this case, the purchase of a vehicle within a specific price range. Each individual in the Club contributes a set amount monthly toward the Club’s Common Fund. The Club agreement clearly lays out the terms so you will know exactly what you will pay monthly towards the Common Fund, for how long (typically 60, 72, or 84 months), and how much the management fee will be.

Each month, the Club goes through an assessment that determines whether the Common Fund has a large enough balance to issue a credit voucher (there must be a balance of at least 2x the Club value), how many vouchers the Club can issue, and which members are going to receive a voucher that month (based on their assessed risk relative to other Club members). The frequency with which the Club will issue credit vouchers is determined by the number of members in the Club. Clubs with more members have the funds to issue credit vouchers more often than Clubs with fewer members.

Once a member receives their credit voucher, using it is easy! They can shop at any dealership of their choice and proceed with purchasing the vehicle as usual. The dealer will complete the transaction with Savings Club so that they can drive out of the lot on the same day.

Why Finance with Savings Club?

There are many benefits to financing with Savings Club instead of taking out a traditional auto loan.

  • Save money. While Savings Club charges a Management Fee, it does not charge interest and the Management Fee is typically significantly less than the interest you would pay on a traditional auto loan.
  • No credit check requirements. Savings Club does not require members to have a minimum credit score or any credit score at all. Credit checks are completely optional and only used to help members increase their Savings Score and possibly receive their voucher sooner than they would otherwise. So, you can still save, even if your credit score isn’t great or if you don’t have one at all.
  • A great way to build your credit. Savings Club reports your monthly payments to the credit bureaus, so taking part in Savings Club is a perfect way to not only purchase a vehicle but build up your credit score along the way.
  • No Social Security number requirements. One of the most important purchases for any immigrant new to the US is buying a car. However, if they don’t have an SSN yet, it’s difficult to secure financing. Savings Club does not require its members to have an SSN, so that is not a barrier for them to participate in our group savings program.

If you are looking for the best way to maximize your savings, look no further! Savings Club is a simple, easy, and secure way to save for your next automobile.

Adriano Marques