The Process for Used Car Loans
People can now buy used cars in various ways. One of them is applying for an inexpensive used car loan with a down payment or down payment.
In fact, some financial institutions, such as leasing, already have new products in the form of used car loans without DP.
The average DP that needs to be prepared to bring a used car is around 20-30 percent of the price. For example, the 2016 Toyota Agya used car is sold at $ 100 million. This means that you need to prepare the DP of $ 20- $ 30 million. While the rest will be the main credit.
So Here Is The Practice Of Used Car Loans With DP / Without DP
Cheap used car loans with light DP are considered to help people who do not have the funds to buy a new car. This facility is in the form of installment payments or installments every month for several years.
Apart from the ease of buying a used car of choice, there are some things that must be anticipated first. Specifically regarding the quality of the engine and various shortcomings of a used unit, for example:
- The former suffered a collision.
- Submerged by flood or other natural disasters.
- The odometer has been rotated.
- The letters are incomplete or even the status of a bulging car.
If you have confirmed the used car you want to buy, then you can apply for credit to financial institutions, such as leasing or banks. The process is as easy and simple as that.
Managing Used Car Loans in Leasing
Next, the bank or leasing will analyze your financial capabilities. Are you eligible to become a debtor based on the standards they have set. One of the secrets of successful used car loans is the result of calculating monthly installments not to exceed one third of monthly income.
For example, if a four-year car installments in installments of $2 million, means that your income must be the same or more than $6 million. Don’t worry, married people can combine husband and wife income so that the percentage of used car loans will be higher for approval
Meanwhile, if you apply for a used car loan without DP, you should consider the installment period. The average credit product without DP is quite long up to 7 years, but with more stringent requirements. The repayments are certainly greater than the car loan with DP.
Cheap Used Car Loan Simulation DP Lightweight / No DP
|Used car loans with DP||Used car loans without DP|
|Tenor Installment||5 years||5 years|
|Flower||6% per year||6% per year|
From these simulations it can be concluded that it is safest for you to apply for a used car loan with a DP if you have an income of around $5 million per month.
Meanwhile, if you choose a used car loan without DP, at least you should have an income of around $6.5 million per month and with no other debt burden.
Profit and Loss of Used Car Loans Without DP / DP Light
Reflecting on the simulated table, you can see the difference in interest that needs to be paid within five years. The interest is then divided into installments so that it helps the repayment process.
This is one of the advantages of applying for a used car loan with a low DP. Meanwhile, if applying for a used car loan without DP, it means you need to prepare more funds.
There is a lot you should consider when determining which is most suitable for your finances between credit options with DP or without DP. It would be wise if you are patient in advance by saving to prepare DP.
However, if the conditions are not possible so you must quickly take out a car loan, please choose a credit without DP. Even so, make sure that you have considered all sides, especially in preparing a financial budget at least during the installment period until paid off.
Please note that before starting to apply for a car loan, you must prepare other expenses, such as:
- Annual and five-year vehicle tax.
- Routine service fees and replacement parts.
- Daily gas fare.
- Toll rates if needed.
- Parking fee is a month.
Hopefully, the grouping and calculation of these costs will help you in deciding when the right time to take a car loan without having to sacrifice the fulfillment of other monthly needs.