How do you calculate a new car loan plan? Of course, this is quite difficult to do if you don’t have an idea of a new vehicle loan simulation.
In order for you to get a real picture, this time we will discuss examples of calculations and simulations of new car loans.
New Cars, Supporting Vehicles in the Industrial Age 4.0
The industrial era 4.0 has become rampant and has even become the most common discussion about the economic system of our developing country.
The desire of the people in era 4.0 is also based on daily needs, as a result many people are compelled to have a four-wheeled vehicle in the form of a new car or a car that is in a used condition.
With these problems, various finance companies in the form of leasing or commercial banks were present.
They offer car loan simulations for the purchase of new cars and used cars as an convenience for people who want the four-wheeled vehicle.
Ease of Car Loan Procedure
Although the need for cars is very high, the Indonesian people still have a general perception that tends to be negative about car loans.
That assumption can be on processing that takes a long time or can not imagine the cost per month that must be spent plus interest every month.
Specifically, the Indonesian people have not fully understood the article on how to calculate credit simulations for the purchase of new cars.
However, the confusion of the community is contrary to the ease and diversity of credit service options offered by banks and financial institutions.
The bank or procedural leasing will usually explain in detail starting from requirements, agreements to credit calculations to prospective customers.
Important Things Related to New Car Loans
The function of calculating this car loan simulation is for prospective customers to have an overview of payments every month and can do planning.
After that, determine which car wants to determine what car will be purchased by prospective buyers.
For buyers who want the transaction done on credit, then immediately find out which leasing company you will choose for your car purchase.
# 1 Make Sure You Meet DP As Much As Possible
Usually the leasing company prepares many attractive offers for you, so you have to be smart in choosing the product and also be careful in choosing a car leasing company.
Choose a car leasing company that provides prices with advances that are not too high, with low interest, a period that is quite flexible and has a price reality that is quite competitive with its competitors.
# 2 Adjusting Payment Projections with Capabilities
You can also seek information in advance about everything related to car loans via the internet or ask directly to the company office, bank or to relatives or friends who are experienced in buying a car on credit.
Then it’s time to adjust the funding requirements for car loans and adjust the financial conditions that you have now.
Adjusting your funding needs will be very useful to determine down payment at the first time of payment and the amount of installments each month to suit your ability.
# 3 Calculating Credit Simulation
The more amount of down payment you pay, the greater your chances of choosing installments and tenor of the loan period. Not only that, you can also request a discount to make your down payment lighter.
To give you an idea of how to calculate a car loan simulation, the following is a case example on a car loan simulation. Before calculating the simulation.
# 4 Pay attention to Bank Interest Rates
Leasing or bank interest rates which would you choose for the purpose of credit, financing usually will set the interest rate car loans ranged from 6% to 8% for credit for 1 year to 3 years.
Usually the tenor or time period can be chosen from 1 year to 5 years. But it needs to be remembered again if the longer the period, the interest rate will be even higher.
# 5 Know Insurance Rates
Insurance rates that are to be chosen for a period of 1 year to 3 years are generally 7.5% to 9.5%, the calculation is then multiplied by the price of the vehicle that is credited.
# 6 Administration Fees
The leasing / bank administration fee for credit for 1 year usually reaches Rp.350,000, for a period of 2 years which becomes Rp.450,000 and finally if taken for 3 years the period of payment is Rp.550,000.
Example of Car Loan Calculation Cases
You will buy a new car at a price of IDR 300,000 by credit for 3 years through one of the leases .
Then, what is the minimum amount of down payment that must be prepared and what is the amount of installments every month that must be paid later?
How to determine based on the money you have can be by determining the amount of DP, installments per month and the total amount to be paid for the first time including insurance:
- The down payment rate is usually the minimum amount will be determined by the leasing party, say 10% of the price of the car. (DP = 10% x New Car Prices)
- Calculating the Credit Principal (PK) is by reducing the price of the car with the amount of down payment to be paid. (PK = New Car Prices – DP)
- Determining the amount of interest to be paid (JB) is to multiply the Credit Principal (PK) before the interest rate (tb), where the interest rate is multiplied by the period (jw) of credit in the year divided by 100. (JB = PK x (tb x jw: 100))
After getting the amount of interest that must be paid in its entirety, then to get the amount of the Installment Per Month (APB), how to add the Credit Points (PK) and Amount of Interest (JB) then share the credit period (jw) calculated in months . (APB = (PK + JB): jw (month))
The answers to the example questions above will be like this:
- DP = 10% x New Car Prices
- DP 10% x IDR 300,000,000 = IDR 30,000,000
- PK = New Car Prices – DP
- Principal Credit (PK) IDR 300,000,000 – IDR 30,000,000 = IDR 270,000,000
JB = PK x (tb x jw: 100)
The amount of interest that must be paid is IDR 270,000,000 x (8 × 3): 100 = IDR 64,800,000.
APB = (PK + JB): jw (month)
Monthly Installments (IDR 270,000,000 + IDR 64,800,000): 36 months = IDR 9,300,000
Insurance Fee 9.5% x Rp. 300,000,000 = Rp. 28,500,000
Administration Fee = IDR 550,000
In addition to planning a budget for car loans, of course you must be able to plan your finances well, you can read the Financial Planning ebook for the age of 30 below for FREE.
New Car Loan Simulation
With the above calculations, the total you have to prepare for the first payment is:
Advance (DP) + Installments in the First Month (APB) + Insurance Fees + Leasing Administration Fees
The first payment to be paid is IDR 30,000,000 + IDR 9,300,000 + IDR 28,500,000 + IDR 550,000 = IDR 68,350,000
Well, that’s the example and how to calculate a new car loan simulation that hopefully can be an illustration before buying a new car on credit.
If you feel the monthly installments are still too large, then return as mentioned before. That you can manage by increasing the amount of his down payment to reduce the amount of installments per month.
Not only that, you can also choose leasing or banks and insurance companies that offer the lowest rate / interest, so that the funds that have to be provided are smaller.
You can use the help of the Application to plan and manage your finances in terms of car loans. The application can be easily downloaded via the link below or through the Google Play Store.
After reading the article above, of course buying a car by credit is not a difficult thing right?
So that more people can buy a car with careful planning, then don’t forget to share these important tips with your friends and family, thank you.