Last updated July 2026
The short version
A consórcio is a group-purchase system that lets people buy big-ticket items, like cars and homes, without borrowing from a bank. Members contribute a set amount every month into a shared fund. Each month, one or more members are selected to receive a credit and buy their asset. Everyone keeps contributing until the whole group has been served. It is used by roughly 13 million people in Brazil and is regulated by the country's central bank.
How it works, step by step
- 1.A group forms, and everyone agrees to contribute a fixed monthly amount for a set number of months.
- 2.The contributions build a common pool that funds purchases for the group.
- 3.Each period, members are selected to receive their credit, by scheduled draw or by offering to advance more of their share.
- 4.The selected member uses that credit to buy their car or home. It becomes a loan, and the group is the lender and the lienholder on the asset until the loan is repaid.
- 5.Everyone keeps contributing until every member in the group has received their credit.
No interest, just a service fee
Because the group funds itself, the group itself is the lender, not a bank, and there is no compounding interest. Members pay a transparent administration fee for running the system, not interest on a debt.
Why it is trusted and regulated
The consórcio is not an informal arrangement. In Brazil it is supervised by the central bank, administrators must be licensed, and member contributions are protected under strict rules. That oversight is a big part of why so many people trust it with major purchases. It is an ordinary, mainstream way to buy a car or a home, not a fringe alternative.
How Savings.Club brings it to the US
Savings.Club takes this proven model and rebuilds it for American members. Contributions go into a Common Fund held in an irrevocable trust at US Bank, and the trust is administered through the Jackson Hole Trust Company with a member-elected board. When your turn comes, you receive a Purchasing Voucher to buy your car or home. When you use your voucher, it becomes a loan, and Savings Club is the lender and the lienholder on the asset until the loan is repaid. Instead of interest, you pay one flat fee. On a $35,000 car, a member keeps about $17,643, roughly 28% less than financing it with a bank.