Move Brasil: Government Expands Financing for Used Cars for Ride-Hailing and Taxi Drivers

The Brazilian government has expanded the Move Brasil program to allow ride-app drivers and taxi operators to finance used vehicles, according to reports from O Globo and UOL Economia. This policy shift broadens the initial scope of the initiative, which previously focused on new cars, to help professional drivers update their fleets via semi-new vehicle loans.

The expansion comes as a response to credit bottlenecks. InfoMoney reported that credit constraints stalled the Move Brasil program for taxis and app drivers approximately one month after its initial launch. By opening the financing window to used cars, the administration of President Luiz Inácio Lula da Silva aims to lower the entry barrier for drivers who cannot afford the premiums of new vehicles.

Financing Terms for Used Vehicles in Move Brasil

The updated guidelines allow drivers to seek financing for semi-new cars, though specific eligibility criteria for the vehicles depend on the lending institution’s rules and the program’s regulatory framework. According to Brasil 247, the move is designed to increase the number of eligible drivers by providing a more flexible alternative to the original new-car requirement.

The program targets two primary groups: licensed taxi drivers and those registered with ride-hailing applications. By incorporating used vehicles, the government intends to accelerate the renewal of the urban transport fleet, which often suffers from high depreciation and wear due to intensive professional use.

Credit Constraints and Program Implementation

The decision to include used cars follows a period of stagnation in the program’s rollout. InfoMoney noted that credit availability became a primary hurdle shortly after the program’s debut, preventing many drivers from accessing the necessary funds to purchase new vehicles.

Economic Context of the Lula Administration’s Transport Policy

Comparison of Program Scope

The transition from a “new-only” model to a “new and used” model changes the program’s impact on the automotive market.

• Original Scope: Financing restricted to new vehicles.
• Expanded Scope: Financing now includes semi-new (used) vehicles.
• Target Audience: Taxi drivers and ride-app operators.
• Primary Objective: Overcoming credit freezes and accelerating fleet renewal.