Over a billion people in 90+ countries buy cars, homes, and equipment at a fraction of the cost.
The model is over 800 years old. The world's largest automakers run it. The world's largest banks built their businesses on it. Here is the evidence.
1B+
people using the model
90+
countries
800+
years old
$0
compound interest
Members pay a flat administration fee (typically 10-15% of the asset value, spread evenly across the full term). The fee does not compound. It does not fluctuate.
The world already does this
These brands run flat-fee savings clubs for 30 million Germans, 13 million Brazilians, and a billion people across 90+ countries. In America, they charge you 7 to 12%+ APR instead. Why?
THE AUTOMAKERS
The world's biggest automakers already use this model.
Ford
400K+ delivered
Ford calls it "Ford Forever" in Brazil. Flat fee, no compound interest. In America? They charge you APR.
General Motors
1M+ members
Chevy runs savings clubs in Brazil and Colombia. Two continents, one model: flat fee, no compound interest.
Stellantis
4 brands
Jeep, Fiat, Peugeot, Citroen, all under one flat-fee savings club umbrella in Latin America.
Toyota
15K+ active
Runs savings clubs in Brazil and Argentina. In the US? They charge 6.8% APR for the same cars.
Honda
8M+ delivered
The world's largest savings club program. Eight million vehicles delivered. No interest charged.
Mazda
6,100+ clients
Runs savings clubs in Mexico through Grupo Autofin. Active for years. Flat fee only.
BMW
Active program
No interest in Brazil. 5.49% APR in America. Same cars, same company, different rules.
Mercedes-Benz
40+ years
Luxury vehicles, flat fee, four decades running. US buyers pay 5.9% APR for the same badge.
Volkswagen
700K+ delivered
Operates savings clubs in three countries. A core business unit generating billions, not a side project.
In these programs, members pay no compound interest. Instead, they pay a flat administration fee (typically 10-15% of the asset value, spread evenly across the full term). The fee does not compound. It does not fluctuate. All links above are live and verifiable.
THE BANKING GIANTS
The world's largest banks built their businesses on it.
United Kingdom
Nationwide Building Society
Since 1775
The original savings club model. Members pooled savings and took turns buying homes from the shared fund. Older than America itself. Nationwide, now the world's largest building society with over £400 billion in assets, grew directly from this tradition.
Visit NationwideGermany
Sparkassen / LBS
€2.4T
In total contracts. Bigger than JPMorgan Chase.
22.7 million active Bausparen contracts. 60% of German property buyers use this model. Members save together, then access low-cost loans at a blended rate of 0.25-0.58%, compared to 6.05% for a US mortgage.
See it yourselfAustria
1 in 2
Raiffeisen Bausparkasse
Half the country. In a nation of 9 million, over 5 million active contracts. This is not alternative finance. It is how Austrians buy property.
See it yourselfBrazil
Central Bank of Brazil / ABAC
$85 billion
Annual volume. Regulated by the central bank since 1962.
12.76 million active members. 6.1% of GDP. Government-regulated mainstream banking overseen by the Central Bank of Brazil. Members pay flat fee, only a flat administration fee.
Visit ABAC (industry association)Every major bank in Brazil runs this program: Itaú Unibanco ($450B) · Bradesco ($340B) · Banco do Brasil ($460B), all flat fee, no compound interest.
THE SMOKING GUN
Same bank. Two countries. Two prices.
Santander
America's largest subprime auto lender. $550 million settlement with 33 state attorneys general for predatory lending.
Santander Brasil
0%
+ flat admin fee
Total cost on $26,307 car:
$29,464
Santander USA (subprime)
19%
compounding interest
Total cost on same car:
$43,995
$14,531 more
for the same car, from the same bank.
Deep subprime borrowers (300-500 credit) pay up to $17,657 more.
"Santander profited by approving high-cost loans to disadvantaged auto buyers who were doomed from the start."
California Attorney General Xavier Becerra, announcing the $550M settlement (May 2020)
US subprime rate: 19% average APR per Santander Consumer USA ABS data (Q1 2024). Term: 71 months. Brasil consorcio: 0% interest + 12% flat admin fee. Settlement: $550M across 33 states for approving loans with expected default rates exceeding 70%. All figures are from public filings and government records.
ACADEMIC VALIDATION
What the research says.
Bank for International Settlements
"Savings-and-credit contracts can expand access to credit and dominate classic loan contracts."
BIS Working Paper No. 1236 (2024). "A more efficient separating device than a single down payment." Read the paper
Wharton School, University of Pennsylvania
"Automaker-administered consorcios are dominant market players serving both credit-constrained consumers and middle-class savers."
Won the Reginald Jones Thesis Prize. Read the thesis
Federal Reserve Bank of Philadelphia
"Early forms of U.S. savings and loan associations exhibited similar characteristics."
"Lower transaction costs passed along to members, resulting in lower cost loans." Read the paper
Now do the math on your next purchase.
See exactly how much you would save with a flat fee instead of compounding interest.