What is the simulation of used car loans and new cars? Many people need a car to support all activities and various other activities carried out outside the home. Everyone will certainly have different needs and abilities in buying a car.
However, as a rule recommended by financial experts, the first thing we have to do is adjust these needs to the financial capabilities we have.
Many people force themselves to buy a dream car beyond their financial means and can be sure if it will bring negative impacts and various problems in their finances in the days to come.
For that, we should think and do careful calculations before deciding to buy a car.
Car Loan Simulation
Preparing a car loan simulation, to help you make careful calculations before deciding to buy a car.
Try this widget ! The trick, namely by downloading the Application, and open the feature: “Calculating Goods Buying Funds”. Here is a Guide to Calculating Car Buying Funds that we have also prepared to make it easier for you to calculate.
Cars are assets that experience depreciation or depreciation in value from year to year. Cars are different from houses or land, which tend to experience price increases from time to time.
When you will buy a car on credit, one of the main things that must be calculated is the amount of interest and installments per month. Installments and loan interest must be adjusted to our financial conditions.
Bank Car Loans or Leasing?
The more number of interested people to make car purchases, the more credit financing institutions have sprung up. From banks to leasing that is already very mushrooming can be used as an option to apply for a car purchase loan.
Well, from the many choices that make most people confused to determine which institution to choose to be able to get the best and profitable car loans and provide cheap car loans with a lightweight DP.
The similarity between bank credit and leasing is both requiring a minimum DP of 30% of the selling price of the car that has been agreed between the seller and the buyer.
This provision stipulates a minimum down payment of 30% for the purchase of non-productive four-wheeled motorized vehicles. Even so, there are still ins and outs of these two credit financing institutions that have differences and shortcomings and strengths that you can use as guidelines for taking car loans.
1 Credit through the Bank
For those of you who will take credit at the bank, then you will receive a lower interest rate than when you took it in leasing . This of course will be very suitable for those of you who want a lightweight DP cheap car loan. Especially if you have more cash, you can pay off some of the principal debt in a certain time. This method will reduce the installment burden every month.
While the lack of credit through this bank is a long and complicated process compared to if you submit it in leasing . In addition, you as a debtor still have to take care of all required documents such as salary slips, domicile certificates, birth certificates, family cards and others.
When submitting complete documents, usually the bank still has to send a representative to conduct a survey. They will assess a decent status or not prospective customers get credit. They don’t just ask and do interviews with you but they will also examine billing files such as electricity, PDAMs, and credit cards.
2 Credit through Leasing
Choice through leasing also has its own advantages and disadvantages. Applying for credit through leasing will make you get credit more quickly and easily, even if you are a debtor or prospective customer they will be treated with special care.
This easy and fast process in leasing is caused by the presence of leasing staff who help you throughout the process. You don’t need to go back and forth to the dealer to take care of all the requirements because everything will be done by the leasing office.
Although all processes can take place quickly and easily, applying for credit in leasing makes you have to pay a higher interest rate than the bank. Other costs that you must bear when taking credit at leasing are fiduciary fees, insurance costs and provision fees.
The cost of this insurance will indeed be mandatory because the leasing party has an interest in the car that we have to avoid risks such as lost or damaged by accident. With the insurance, the insurance company will replace the value of the lost or damaged car to the leasing party first, then to the consumer if the value is left over.
The following is an example for Motor Vehicle Loans
If you want to buy a Toyota Agya variant of 1.0 GM / T with an OTR price of Rp131,500,000 then with a 30% down payment and being able to pay off in 2 years or 24 months then here are the differences between Bank vehicle loans (BCA KKB Simulation) and Leasing (Simulation OTO Finance )
For total payments, there is a difference due to the difference between the cost of the financing process, insurance costs (usually only TLO leasing, while the bank can be comprehensive and TLO), policy fees, and credit protection as well as other costs.
Difference between Used Car Loans and New Cars
At present vehicle loan submission is not only limited to cars that are still in a new condition, but even used cars can also be submitted to the credit. This is certainly an advantage and also the ease of owning a car, especially for those who only have a limited amount of funds for that matter.
Here are some points about the difference between used car loans and new cars for your consideration.
1 Amount of Interest Rate
In disbursing credit funds, both banks and financial service institutions will consider the various risks they will bear for the credit application. Used car loans certainly have a higher risk for them, so that banks or financial service institutions may apply a higher amount of interest to used car loans
2 Amount of Down Payment
The amount of this advance will certainly be very influential on the price range of the car you will buy. If you intend to buy a new car, usually the purchase price is certainly more expensive, then the down payment for credit will be greater. Submission of used car loans can be the first choice for those of you who only have a limited amount of funds.
Applying for a car loan is in a new condition, of course, you will take the car home along with a valid guarantee. The guarantee will make you more comfortable and calm. You will not get something like this when you buy a car in a used condition, especially if the production year has been long enough. However, you can protect your used car by buying a vehicle insurance policy for the car.
4 More Competitive Resale Prices
Buying a car in new conditions will cause a significant amount of risk of price reductions when you intend to sell it again in the future. But if you buy a car in a used condition and then intend to sell it again, then you will only experience a low price decline and still in the category of no harm.
5 Car Conditions and Maintenance Costs
A new car certainly makes you feel calm and comfortable because the overall condition of the car is still in top shape. And usually you don’t spend routine maintenance costs for the first few months, because there are free services from the manufacturer.
But if you buy a car in a used condition, it is likely that you get a car that is not so smooth and can have problems in some parts. So, when making a purchase you should check in detail the used car.
6 Insurance Premium
When owning a car, it is only natural if you think of buying insurance as a form of protection. This is usually included at the same time when you apply for credit. The amount of the insurance premium that will be imposed on the car in a used condition will certainly be greater compared to the new car insurance premium.
Car Loans Can Be A Solution
Purchasing a car on credit, you can make it as a solution to meet your needs for a private vehicle with a limited amount of funds. But it is very important to look at your needs and also adjust to the finances you have. Both used and new car loans, both of which will benefit you, of course if you can get the maximum benefit from the credit application that you will do.