If you are going to buy a car on credit, be careful in choosing a finance or leasing company, and carefully recalculate the financial side. 

The goal is to avoid difficulties in the payment process until you receive the Motor Vehicle Owner’s Book

Choose a reliable financing company, which is registered as a member of the Association of Indonesian Financing Companies (APPI), either a bank or a financing institution. For financing institutions, it is usually related to the automotive sector or Brand Holder Agents (APM).

Prepare a down payment and installments. Down payment or down payment of approximately 30% of the price of the car to be purchased plus total insurance during the credit, and administrative costs.

Adjust the installment value with income. The amount of the installments depends on the credit period and interest, which you should adjust to your monthly income and expenses. The amount of installments you have to pay should be no more than 30% of your monthly income. You can Compare car finance first before choose.

 Choose a loan that is covered by insurance, so that if an accident occurs with more than 75% damage or the vehicle is lost due to being stolen, you do not need to pay the rest of the loan.

Choose a vehicle according to your needs. Considering that credit is carried out in the long term, the selection of a car must be appropriate and in accordance with its function. If the car will be used for family purposes, it would be better to choose the Multi Purpose Vehicle (MPV) type compared to a sedan or city car.

Obdulia Ross