What information do you need to know, before making a used car loan? Now these things you need to know so you do not regret later.
This Is What You Need To Know About Used Car Loans
At present the car has become a necessity for the community, especially the people in big cities. So do not be confused if the streets are getting jammed every day. Many finance companies offer car loans to the public.
This used car loan is a solution for the community, because you can buy a car at a more affordable price and installment rates. Currently you can have a car at a more affordable price. So do not be mistaken and regret in the future, then you must know first about used car loans.
Basically used car loans are the same as buying a car with an installment system. Of course the amount of the installments depends on the down payment you pay, the period and amount of interest. Sometimes used car loans can be more expensive than new cars, because of the large down payment needed and credit interest.
Where is the Place to Apply for Used Car Loans?
Who do you think provides a used car loan facility? Used car loans are currently provided by several companies, such as banks and motorized vehicle leasing.
Banks offer vehicle loans commonly known as motor vehicle loans. Some banks offer used car loan interest in intervals of 8% – 14.5% per year. Interest is offered in the form of a fixed rate. The loan period is up to 5 years. We do not have the financial planners to suggest that you do not take vehicle debt for more than 5 years, especially if you are buying a used car.
Motor Vehicle Leasing
In addition to banks, you can apply for a used car loan in a motorized vehicle leasing company. Leasing companies usually provide easy credit application processes. Of course you need to meet several applicable terms and conditions and pass the survey. The interest offered is also competitive with bank offers, around 8% – 15% per year fixed rate.
What is the Simulation of Used Car Loans?
Examples of used car loan simulations:
- Advances to be paid 20% – 30% OTR (on the road).
- Every application for a car loan must be supported by life insurance and vehicle insurance. Car insurance premiums will be adjusted to the age of the vehicle and type of insurance (all risk or lost only).
- Credit is offered at a fixed rate with a maximum period of up to 5 years.
Mr. Ronald wants to buy a used car for Rp. 110 million and a vehicle age of 5 years. Mr. Ronald wants to use car loan for 5 years or 60 months.
- Advances must be prepared 30% x Rp 100,000,000 = Rp 3,000,000
- Insurance premiums, for example 2.50%, then 2.50% x IDR 100,000,000 = IDR 2,500,000 per year.
Monthly installments are calculated from the total used car loan (car price – down payment). In the case of Mr. Ronald, the total credit amounted to Rp. 70,000,000. If the interest per year is 12% fixed rate, then the installments per month:
- Basic installments: IDR 70,000,000 / 60 months = IDR 1,166,667
- Interest: (12% / 12 months) x Rp. 70,000,000 = Rp. 700,000
- Total installments per month: IDR 1,166,667 + IDR 700,000 = IDR 1,866,667
General Conditions in Used Car Loans
Here are the general requirements for applying for a car loan, for individual applications:
|Copy of Consumer ID Card||Yes||Yes||Yes|
|Copy of wife / husband’s ID card||Yes||Yes||Yes|
|Copy of Family Card||Yes||Yes||Yes|
|Copy of Marriage Certificate||Yes||Yes||Yes|
|A copy or proof of electricity bill, PDAM||Yes||Yes||Yes|
|Copy of NPWP / SPT or NPWP statement letter||Yes||Yes||Yes|
|Copy of current account / savings account for the last 3 months||Yes||Yes||Yes|
|Copy of SIUP||Yes||Yes|
|Copy of Practice Permit||Yes|
|Salary slip for the last 1 month / Letter Ket. Income||Yes|
Here are the general requirements for applying for a car loan, for legal entities:
- Copy of NPWP / SPT or NPWP statement letter
- Copy of current account / savings account for the last 3 months
- Copy of SIUP and TDP
- Copy of the Deed of Establishment & Amendment
- Copy of Ratification Deed of the Minister of Justice
- Copy of Information on Domicile
- Copy of financial statements for the last 2 years
- Copy of Management ID (complete)
What Should You Look For When Taking a Used Car Loan?
Here are some things you need to pay attention to when taking a used car loan:
- Note the condition of the car, whether the price of the car and the conditions are appropriate or not. There is nothing wrong with you comparing the prices of used cars and inviting skilled people about car engines.
- Do not ambit the credit period that is too long, so you do not experience losses.
- Discuss with banks or leasing companies for financing. It does not hurt you to bid on used car credit costs.
- Compare interest between companies offering used car loans.
- Also pay attention to the costs of fines, accelerated repayments, provision fees, administrative fees, insurance costs and other costs.
Congratulations on hunting for cars and used car loans that are suitable for your needs.