Car Loans, Want To Choose At The Bank Or Leasing?
As one of the important forms of transportation today, cars have always been a dream for many people. Not only because it is more practical, but also supported by public transportation conditions that are far from comfortable, it makes people tend to think they must have their own vehicle.
To have a car today, everyone has many ways and choices. If you do not have the cash to buy directly, there is still a way of credit or payment in installments or installments per month. Purchasing credit has indeed become the choice of many people to own a car.
Even car purchases in cash alone can be counted on the fingers
Especially with the existence of a cheap car loan program with a mild DP to reduce costs incurred, so people are happier to apply for credit rather than buying in cash.
With the growing number of enthusiasts for the purchase of this car, credit institutions have also sprung up. From banks to leasing that is already very mushrooming, it can be a choice to apply for a car purchase credit.
Now of the many choices that make most people confused to determine which institution should be chosen to be able to get the best and profitable car loans and provide cheap car loans with a mild DP.
Both banks and leasing will indeed have the same concept and role to provide bailouts when you want to own a car but don’t have enough funds to pay in cash. This bank or leasing will pay a portion of the desired car first, then periodically you will pay the debt in installments every month.
Although it has the same way of working, as a credit applicant (the debtor), of course as much as possible you are looking for institutions that can provide low-interest rates for low-DP cheap car loans and of course that can benefit you. Then which is better? Bank or leasing? To find out just consider the following explanation.
Bank and Leasing Equations
Before discussing the differences and advantages and disadvantages of credit through banks or leasing, it helps us discuss the similarities. In addition to the same method of work as previously mentioned, the credit equation between banks and leasing is that both require a minimum DP of 30% of the agreed car sales price between the seller and buyer.
This provision itself has been regulated by Bank Indonesia listed in External Circular Letter Number 14/10 / DPNP which stipulates a minimum down payment of 30% for the purchase of non-productive four-wheeled motor vehicles.
Nevertheless, there are still ins and outs of these two credit financing institutions that have differences and weaknesses and strengths that you can use as guidelines for taking car loans.
Credit Through Banks
There are many banks that offer car loan products, both new car loans, and used car loans. For those of you who will take credit at the bank, then you will receive a lower interest rate than when you took the lease.
This, of course, will be very suitable for those of you who want a cheap DP cheap car loan. Especially if you have more cash, you can pay off some of the principal debt within a certain time. This method will reduce the burden of installments every month.
While the lack of credit through this bank is a long and complicated process compared to if you apply for leasing. In addition, you as a debtor still have to take care of all the required documents. Of course, it is not an easy matter to deal with the completeness of documents such as salary slips, domicile certificates, birth certificates, family cards, and others.
When you complete the complete documents, it doesn’t mean that the credit you submitted can be received immediately. This is because banks still have to send their representatives to conduct surveys. They will judge whether or not a prospective consumer deserves credit. They not only ask questions and conduct interviews with you, but they will also examine utility bills such as electricity, credit cards.
The submission process is indeed rather long because the bank must implement the precautionary principle by asking you to complete all the data and documents needed to ensure the ability of car buyers to pay installments and advances.
Credit through Leasing
The second option is to apply for credit through leasing. This method also has its own advantages and disadvantages. Applying for credit through this lease will make you get credit faster and easier. In fact, not infrequently you as a debtor or potential customer they will be treated with special privilege.
The easy and fast process in leasing is due to the staff leasing that will help you in the whole process. From preparing the complete documents to the ball pick-up facility to the house you will get from this leasing.
From here we no longer 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 be very quick and easy, applying for credit in leasing requires you to pay a higher interest rate than the bank. Other costs that you also have to bear when making credit on leasing are fiduciary fees, insurance costs, and provision fees. This insurance fee will indeed be mandatory because the leasing party has an interest in the car we have to avoid risks such as loss or damage due to an 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.