Want to Apply for a Car Loan?

What is a car loan?

Car loans are included in Motor Vehicle Loans (KKB), which is one alternative financing for obtaining a new or used car or motorcycle with an installment system.

The general agreement in the CLA concerns two parties, where the lender (the creditor) approves the loan to the recipient of the loan (the debtor) to buy a motorized vehicle.

The creditor will receive the money back along with certain benefits in exchange for the loan service which is usually in the form of interest.

Credit can be submitted to banks or other financial institutions that provide these loan products. Generally, the guarantee used in the KKB is the vehicle itself, so if you fail to pay, the vehicle will be confiscated.

But does taking a car loan always lead to a profit for the debtor?

Benefits of Car Loans

Benefits of Car Loans

Of course car loans have several advantages, as evidenced by the increasing demand for loan products in this community. The several advantages that appear are as follows:

# 1 Solution for those of you who don’t have funds at the start

Cars have now become a major necessity, although not a primary need. But unfortunately the price of cars also continues to increase from year to year.

Thus, you could say a car is an item whose price is quite high. With a standard salary, it is difficult to be able to save for buying a car. You could just buy a car for 10 years.

Therefore, a loan product is made in the form of Motor Vehicle Loans which can be a solution to the problem.

With a car loan, you can have a car while paying slowly in a reasonable amount.

# 2 Will Make Money if Used with Productive

For those of you who buy a car not for personal needs, but for business needs, then car loans are a way that should be considered.

Because this can help turn money around to stay awake.

However, you still have to calculate the estimated profit of the business. Do not let income lower than expenditure. If not, it could be at risk of bad credit.

# 3 Can Have a Car Even Not Paying Off

# 3 Can Have a Car Even Not Paying Off

One of the main factors for people taking car loans is because of the need for fast cars. If you save, you will be able to buy a car, but with a car loan you can use it from the start, even though it hasn’t paid off.

Even now it is not uncommon for car loans to offer a DP of 0% or a light interest rate, which is certainly one of the attractions of credit rather than paying in full.

# 4 Insurance in Car Loans

# 4 Insurance in Car Loans

By applying for a car loan, generally you will automatically get insurance. Thus, even though the car is still in the process of financing and has not paid off, the car will continue to be under insurance protection.

Different if you buy a car in cash, then you need to buy insurance separately.

# 5 Requirements are easy

Compared to taking other loan products to buy a car, the car loan terms are quite easy. Try to compare the terms of Unsecured Loans (KTA) and car loans (KKB), so it is clear that KKB is much easier to submit.

The several terms and completeness of documents for applying for a car loan are as follows:

If you are married:

  • Photocopy of husband and wife’s ID card
  • Photocopy of Family Card
  • Account Statement for the last 3 months
  • Salary slip

If not married:

  • Copy of ID card
  • Photocopy of Family Card
  • Account Statement for the last 3 months
  • Salary slip
  • Photocopy of UN

# 6 Funds Can Be Used for Other Needs

Even though they have sufficient funds to buy a car, some people still choose car loans. Why do you think?

That’s right, they choose to use existing funds for other more urgent needs first, or maybe invest it with a higher rate of return than car loan rates.

Thus, all needs can be fulfilled and you may even benefit from these funds.

Losses on Car Loans

Losses on Car Loans

In addition to the various advantages, in fact car loans also have some disadvantages, you know !

Before applying for a car loan, consider some of the disadvantages as follows:

# 1 There is a financial burden

It’s just credit, meaning you borrow a certain amount of money and must pay it off in return for interest in the form of credit to the creditor. In other words, you actually owe.

This debt is certainly a financial burden that needs to be resolved with high commitment. Once you let your guard down, you might confiscate your car.

# 2 Interest can rise if the economy is not stable

Car loan interest rates change according to market conditions, and can go up or down.

If something happens that results in an unstable economy, such as riots or other socio-political conditions, then you can bear the impact in the form of an increase in interest rates.

Indirectly, these conditions affect the amount of your installments. Unlike the case if you directly pay in full, because the payment is paid is not subject to interest that can change.

# 3 Wrong Calculation, Cars can float

As mentioned earlier, if you fail to pay, the car can be confiscated by the bank. Thus, you could lose your dream car even though it has been paid in installments.

Therefore, do your financial ability calculations before deciding to apply for a car loan.

To check your financial condition, you can use the Varner family application. With the financial health check feature, you can know how healthy your finances are. In addition, you can also use the Varner family credit calculator widget to calculate the amount of your car loan installments per month.

The method is very easy, enter all the information needed to the empty column, for example like this:

# 4 There is a heavy impression because you have to keep paying in installments

Because car loans are now the longer the tenor, you can just start feeling tired because the installments don’t pay off.

Even though for a period of 5 years, for example, you could have wanted to replace your vehicle again. But whatever the circumstances, you still have to pay off your installments to completion.

Not to mention considering the high depreciation of car prices. Once you drive a vehicle, you can say used cars and the price can go down to 20%.


Leave a Reply

Your email address will not be published. Required fields are marked *