When urgent financial needs arise, many people face a difficult choice: selling their vehicle or choosing financing with a BPKB collateral. While selling a car or motorcycle can be a quick solution, financing with a BPKB collateral offers an alternative that may be wiser.
However, regardless of the available financing options, applying for a loan requires careful consideration because each option has different consequences and advantages. Find out what you need to consider through the explanation below.
Choose to Sell Your Vehicle or Apply for Financing with a BPKB Collateral
Choosing between selling or applying for BPKB–secured financing depends on each individual’s needs and financial readiness.
If the vehicle is still needed for daily activities, BPKB–secured financing can be a solution that allows you to keep the vehicle. On the other hand, if you need quick funds without the burden of monthly installments, selling the vehicle may be the more suitable option.
Before deciding, consider the following important points:
1. Considerations for Financing with a BPKB Collateral
Applying for a loan secured by a vehicle is not the only option. You can consider BPKB collateral financing if you still need to use the vehicle.
Loans secured by a car or motorcycle BPKB are often chosen as a fast solution for urgent financial needs because the requirements are simple and the disbursement process is usually fast, especially if the documents are complete.
You also don’t need to open a new bank account like when applying for a bank loan. In addition, the interest rates tend to be competitive, tenors are flexible, and the loan can be extended. However, several things need to be noted, such as:
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Loan value is usually not up to 100% of market price because financial institutions have their own valuation standards and will first assess the vehicle’s market value.
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The BPKB will be used as collateral.
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Vehicle age is limited, generally a maximum of 10 years, and tax must be active.
Many people choose BPKB collateral financing because they want to retain their vehicle as an asset and reclaim it after repaying the loan in the future.
If the loan is not redeemed, it can be extended. However, there are usually additional fees such as interest and administrative charges.
What happens if BPKB installments are not paid? Each creditor may apply different terms, but failure to pay is generally followed by penalties and may eventually lead to vehicle repossession.
2. Considerations for Selling the Vehicle
Selling a vehicle can be another option if you do not want to have monthly installment obligations. By selling, you are free from monthly charges and do not have to pay interest or administrative fees.
However, once sold, the ownership shifts immediately. This means you no longer have rights over the vehicle. Therefore, consider the following before selling:
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Ensure the vehicle being sold is not your main tool for work.
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You still have another vehicle for daily mobility.
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The vehicle is rarely used so selling it is more efficient.
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You are ready to accept the consequence of no longer owning the vehicle after it is sold.
If these factors are carefully considered, selling the vehicle can be a suitable solution for obtaining funds.
How to Choose a Financing Company with BPKB Collateral
If you decide to apply for BPKB–secured financing, there are several important points that can guide you in choosing the right financing institution. Here’s the explanation:
1. Check Company Legality and Reputation
A secure and transparent financing institution must have clear legality, such as being registered and supervised by the financial authority.
In addition, the office address and contact number should be active, there should be positive customer reviews, and the institution must have a good reputation in the community — indicating consistency and professionalism in service.
2. Pay Attention to Fee and Interest Transparency
Before pledging your BPKB, ensure you obtain full information regarding fees and interest rates.
Licensed financing institutions provide clear details on interest rates, administrative fees, and late payment penalties.
3. Document Security and Storage Conditions
BPKB security is crucial, so creditors or financing companies usually provide secure storage systems such as special safes and protection from loss or damage.
Document handover must also always be accompanied by an official receipt to guarantee legal protection for both parties.
4. Fast Process and Clear Requirements
Fast fund disbursement is important, especially for urgent needs.
Therefore, choose a financing institution with clear procedures, including identity verification (e.g., ID card) and vehicle documents (STNK and original BPKB).
5. Professional Service
Professional service is an important factor when choosing a BPKB–secured financing provider.
Informative and responsive staff help customers understand every step of the financing process. Information on due dates and repayment periods also helps customers better understand their obligations.
That is the explanation regarding the options between selling a vehicle or applying for BPKB–secured financing. By evaluating both options, you can determine the most appropriate step based on your financial condition and needs.
If you need quick funds without selling your vehicle, BFI Finance can be the solution. Available financing options include BPKB Motorcycle, BPKB Car, and Home/Shop/Commercial Building Certificates — processed quickly, safely, and transparently.
BFI Finance is officially licensed by the Financial Services Authority (OJK), so you don’t have to worry about safety and legality.
Don’t wait any longer to apply for financing that suits your needs because #SelaluAdaJalan with BFI Finance!
