Having a private vehicle is normal for some people. Because, a car is not a difficult thing for everyone to have. With so many activities, it has become one of the reasons why many people who want to have a private car. Limited funds are not a problem and a reason for people not to have a car. See http://www.mizgel.net/2020/01/16/best-buy-here-pay-here-car-lots-find-local-buy-here-pay-here-car-lots/ for a summary
There are many options to overcome this, namely buying or using a used car loan. Used cars does not mean that the conditions are not good, because there are still many quality used cars. If funds prevent you from buying a car, then you can do used car loans. However, this must be done by meeting the requirements set by the financial institution. If you want to do a used car loan, then consider the tips below:
Buy a Car at Leasing or a Dealer
With the high demand for people to own a private car, the dealers also see this as an opportunity to get high sales figures. The dealer also always provides a variety of attractive offers and convenience in the process of purchasing a car.
Not only selling new cars, the dealer also sells various types of used cars as an alternative for people who have limited funds. This was also done by the leasing and finance parties. Both financial institutions also offer attractive offers in the process of selling used cars.
In its service, the dealer and leasing have their respective policies in the used car loan procedure. As a prospective buyer, you must be wise in choosing the institution that suits your needs. The following is a comparison of dealer and leasing services :
Strengths and Weaknesses of Leasing
If you want to make used car loans through leasing, you must know the advantages and disadvantages first.
a. Advantages of Leasing
- Advances are more flexible and lighter. You can specify the amount of down payment you want to pay. As a consideration, you should know that the smaller the down payment that is paid, the greater the credit debt that is paid monthly.
- The installment period is quite long and you can choose the desired installment period. The longer the installments taken, the greater the interest to be paid each month.
- The amount of installments can be adjusted to your abilities. It’s better not to take small installments. Therefore, the repayment period and the interest debt will be even greater.
b. Lack of Leasing
- The price difference is quite different. If you calculate all payments made through leasing during the installment period, then the total of the total value can reach double the price of paying for the used car you bought.
- Interest rates are quite high.
Dealer Strengths and Weaknesses
Just like leasing, there are advantages and disadvantages that the dealer has. This can be a consideration for you when you want to do a used car loan.
a. Dealer Strengths
- Difference in price of credit and cash used cars offered are not too far away.
- This is inversely proportional to the offer provided by leasing.
b. Lack of Leasing
- The amount of down payment is relatively high. It will be difficult for you when buying a car through the dealer.
- The procedures and requirements are quite complicated and become an obstacle.
- Not all types of cars can be purchased on credit. Only certain types are offered by dealers.
Tips on Buying a Used Car in a Leasing or Dealer
Leasing and dealers have different services, but this can be tailored to your individual needs. When buying a used car, you must consider a few points when deciding to buy a new car. The following are tips for buying a used car at a leasing or dealer :
a. Have a Good Reference
When buying a used car, you should compare one car with another car. This will facilitate you in assessing and choosing the type of car that suits your needs. In addition to knowing the type of car, you also need to understand the latest condition of the used car. Look at each part of the car and the risks you will get when buying the car.
b. Interest rate
Interest rates are also one of the things you should consider. This will affect the overall purchase value and the monthly installment value that you will deposit. For the installment interest calculation, the longer the installment period is taken, the greater the installment interest to be paid.
c. Installment period
Generally, the installment period specified for buying a used car will be shorter than the installment period for a new car. That way, you can pay off the repayment debt faster.
d. Meet the Requirements
When applying for a used car loan, you must know the requirements that must be met, namely:
- Photocopy of KTP and KK.
- Photocopy of savings or checking account.
- Photocopy of proof of your tax payment.
Used car loans can be a solution for you who have limited funds. However, you also have to adjust it to your needs and finances. Well, the most important thing before doing a used car loan, you first check the selling price and ask the dealer or leasing to provide a credit simulation. That way, you can more easily check the average repayments that you have to pay.
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