The surge in new car models and the need for personal transportation has made used cars an attractive option for the public. However, the high prices of cars make it difficult for people to buy them outright. There's no need to worry, as financing a used car can be an alternative way to acquire a car by paying in installments. This way, you don't have to spend a large amount of money upfront.
However, before you decide to finance a used car, you should know the methods of financing used cars so that the item you get meets your expectations. Read the following article to the end to find out easy, safe, and reliable ways to finance a used car.
1. 7 Ways to Finance a Used Car
1.1 Choose the Car to Finance and Simulate Installments
This is a crucial initial step in financing a used car. You should select a used car that suits your needs and financial capabilities. Simulating installments will help you understand how much monthly installment you need to pay and whether it fits your budget. Choosing a car that still performs well is also important to ensure that it can be used comfortably for a certain period.
1.2 Choose the Best Dealer
The next step in financing a used car is to choose a reputable dealer. A trustworthy dealer with a good reputation will help you get better service, including clear information about the used cars for sale and a transparent credit process. This is an important requirement for financing a used car so that you can get a quality car at a price that fits your budget.
1.3 Choose a Reliable Leasing Company
The third method of financing a used car is to choose a reliable and reputable leasing company. A good leasing company will provide fair service and an easily understandable credit process. To find a reliable leasing company, you should do thorough research. Don't forget to ask for recommendations from relatives and friends who have previously financed a used car.
Also Read: 6 Reasons Why the Loan Get Rejected and How to Overcome Them
1.4 Prepare the Necessary Documents and Requirements
The fourth method of financing a used car is to carefully prepare the required documents and requirements, ensuring that all submitted data is accurate and not manipulated. This includes personal identification documents, income proof, and other financial information.
1.5 Leasing Company will Review Your Creditworthiness
After you apply for credit, the leasing company will review your eligibility as a borrower. This is the next step in financing a used car. They will evaluate the information you provide and assess the risk to determine if you are eligible for credit.
1.6 Choose Car Insurance for Protection
As an additional protection measure, the next step in financing a used car is to choose appropriate car insurance to protect your investment. Car insurance will help protect you from financial losses that may occur due to accidents or car damage.
1.7 Pay Installments According to the Tenor and Interest
After the credit is approved, it is important to pay the installments according to the predetermined schedule and on time. Of course, paying installments is a very important method of financing a used car. Paying installments according to the tenor and interest will help build your credit and avoid penalties or additional fees that may arise from late payments.
2. Requirements for Financing a Used Car
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After knowing how to finance a used car, you need to know about the requirements for financing a used car. This way, you can prepare yourself:
2.1 Vehicle Requirements
Firstly, in terms of vehicle requirements, the types of vehicles that can be financed include sedans, jeeps, minibusses, as well as commercial vehicles such as pickups, double-cabin trucks, and public transportation vehicles. There are no restrictions on the brand of the vehicle, but the maximum age of a used car loan is 17 years for sedans, jeeps, and minibusses, and 10 years for commercial vehicles. Vehicle registration certificates (STNK) or vehicle taxes must be valid for a maximum of 4 years, with a valid 5-year STNK.
2.2 Borrower Requirements
Borrowers must be Indonesian citizens aged between 21 and 60 years old. Residential status can vary, from own house, spouse's residence, family residence, to yearly rental or official housing. However, the type of business or profession must not violate the law, while there are no specific restrictions regarding the type of business or occupation that can apply for credit.
2.3 Document Completeness
Some documents that need to be prepared include the applicant's ID card and spouse's ID card if married, Family Card or Marriage Certificate if married, as well as proof of payment of property tax for the last 2 years or electricity bills for the last 6 months. Other documents include the applicant's Taxpayer Identification Number (NPWP), a certificate of residence if the housing status is official housing, original salary slips for the last 3 months, and an ID Card for employees. Additionally, for those with businesses, a Business License (SIUP), Company Registration Certificate (TDP), company deed, business license, or practice permit are required as additional document requirements to be included in the credit application.
3. Apply for a Used Car Loan at BFI Finance
Dear BFI friends, the following are ways to buy a used car that you can apply for if you want to buy a used car. One of the financing companies that can support used car loans is BFI Finance. Apply for financing at BFI Finance, with a quick and easy process. Get closer to your dream car with BFI Finance because BFI Finance is the comfortable solution to owning your dream car.
BFI Finance itself is a financing company that provides multi-purpose loans with motor vehicle registration certificates (BPKB), car registration certificates (BPKB), and house or shop certificates as collateral for your needs
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