Note the Advantages of Used Car Loan Loss
Having a car seems to have become a necessity for someone who has high mobility. Do you feel that way too? The community’s need for cars does not only fall on new car choices, but also used cars. Yes, used cars still seem to be excellent in the hearts of fans.
However, it is not uncommon for used car seekers to feel confused. Many question “is it better to buy a used car in cash or credit?”
Do you also experience the same confusion? Both of these methods of payment certainly have advantages and disadvantages that must be adjusted to your financial condition. A very mature consideration is needed when deciding to buy a car with credit. Therefore, we should discuss further in important points about the advantages and disadvantages of buying a used car with the following credit:
Advantages of Buying a Used Car on Credit
What do you do when you want to have an item, but not enough money? Of course the answer is applying for credit. Just like other items, you can also apply for credit when buying a car. It’s not only cash purchases that can make you profitable. It turns out there are also benefits you can get when buying a used car on credit.
Take Car Home with Limited Money
This is the main advantage of buying a car on credit. This is also the main attraction for most people who decide to pay credit. Most people want and need a car, but they don’t have enough money to buy a used car. Finally, the shortcut used is to apply for credit. You need to know, psychologically it turns out that many people feel when buying a used car on credit feels more fun and also lighter.
Only with a limited amount of money, the car you want can already be taken home immediately. In fact, you can directly drive it only by paying a down payment or DP from the agreed value. This step is considered to be a shortcut and a solution for someone who needs a car quickly.
The conditions are very easy
The process is fast, only requires a little money, and easy terms. Who doesn’t want to? The thing you have to do is prepare the money and some of the files that are the requirements. What are the files? Almost the same as the credit terms in various places, you only need to prepare this: a photocopy of your KTP, Family Card (KK), Salary Slip, and the last 3 months bank statement. All of these files are used as a guarantee that you really want to apply for credit. Not only that, your ability to pay credit will also be seen from the evidence of salary slips and checking accounts. Therefore, make sure in advance that your salary is set aside to pay installments and there are no financial problems. If everything is complete and has been approved, then you will be asked to sign a credit agreement.
When buying a car on credit, you will usually be directed to insure it directly. It is possible that the used car you have purchased is insured, so you only need to continue the payment.
Disadvantages of Buying a Used Car on Credit
After we know what are the benefits of used car loan payments, it would be very fair to also discuss the disadvantages. Many say that buying a car on credit will be accompanied by various problems. Is that true? To be clearer, let’s discuss the loss in the following points:
The price is more expensive
Whether we do it or not, buying a used car on credit certainly makes the car more expensive than it should be. Why is it expensive? This is of course caused by the interest that has been put into your installment amount. Try to count again, lest the total installment price you have to pay is almost equivalent to the price of a new car. At this rate, it’s a loss, right? Often by paying installments per month, we do not feel that what is paid turns out to have a large total value. If you don’t really need a car, you should collect the money first to buy the car in cash.
Monthly Expenditure Increases
When deciding to take a used car loan, of course you also must be prepared to provide more money every month. You must take into account to meet daily basic needs and pay the car installments accompanied by the installment interest. Although it was said at the beginning that the interest is low or only 1%, believe that the interest of 1% is already very large. At the beginning of installments may not be felt, but if it has been running for several months then the impact will be felt. Not to mention if there is a sudden need. You will definitely be confused in paying for everything. Are you ready to provide more money every month?
Cars Can Be Confiscated
Paying on credit can also be said in installments. In other words, the item that is the car that you have purchased is not yet fully yours. When your installments are blocked, the worst possible outcome will be the confiscation of the car. This confiscation is usually carried out until you can pay back the mortgage arrears in full.
If you have this it would be very confusing, right?
Therefore, before deciding to buy a car on credit, you should really consider the ability to pay for it. In other words, you must be fully prepared for all the risks.