Cars and Loans
Cars and loans are borrowing money in the bank to buy a car. Before we discuss about buy a car, we must know what cost of owning and operating a motor vehicle. There are ownership fixed cost and operating variable costs. Ownership fixed costs consists of Depreciation, is a decrease in value of assets, and allocation to periods in which the assets are used. Interest on loan, if we buying on credit we must to pay a interest on loan. Insurance, is used to ensure that the vehicle you buy can receipt compensation in case of unwanted things like accidents and lost. Registration fee, license, taxes, if we have a vehicle we must pay the registration fee, license, and taxes of vehicle. And than we also have an operating variable costs, consists of Gasoline, oil and fluids, tires, maintenance and repairs, parking and tolls by this cost that vehicle can operated.
And also we must know how much can we afford. You never borrow more than 20% of your yearly net income. if your earn 5.000.000 a month after taxes, than your net income on year is 12 x 5.000.000 is 60.000.000. Calculate 20% of your annual net income to find your safe debt load. 60.000.000 x 20% is 12.000.000. So, you should never have more than 12.000.000 of debt outstanding.
Monthly payments shouldn't exceed 10% of your monthly net income. If you take home pay is 5.000.000 a month. 5.000.000 x 10% is 5.000.000. So, your total monthly debt payment shouldn't total more than 500.000 per month.
After we calculate how much can we afford, we also deciding to spend our money do I really need this item? we must know we are really need the item or not. Is it worth the time I spend making money to buy it? Is there a better use fo my money right now?. And than we also deciding on the right purchase like a I want the high level of quality, I need the high level of quality. I want the dealer offer a good services and repairs, I wait until there's a sale on the type of car I want . I want to buy a new car not a used car. I should choose a car with a well-known name like a Toyota. I ask to my friends or anyone who owns the type of car I want like an automatic car. and I can get more information by an otomotif magazines say about type of car I want. If you want to buy a used car, before you begin shopping, decide how much you can afford to spend, decide which car models and options interest you, and the others. If as you shop find out what type of warranty comes with the car, what type of warranty comes with the car, what type of service contract comes with the car. you can get a used car by sources are new car dealers, used car dealers, private parties, or other sources. For shopping a new car, Decide which car model and specific options you wants, decide whether you need an optional service contract or credit insurance. Warranties are very important, when we buy a car we had to get warranty. Warranties such as As-is (no warranty), Dealer warranties, Implied warranties, and Unexpired manufacturer's warranties.
Like a Credit card, shopping for a car loan also must have variable include APR, Length of the loan, Monthly payment, Total finance charge, Total to be repaid. The formula to calculate the total cost of loan same as calculate the total cost of credit card. There are type of auto insurance coverage, liability 40-50% of premium, collison up to 30% of premium, comprehensive about 12% of premium, medical, uninsured motorist, towing and labor, rental reimbursement. How insurance rate are set personal characteristics, geographic location, driving record, vehicle characteristics.
Terms and conditions of individual documents you must completed, the application form can be obtained at the nearest branch of car loans company, copy of ID prospective customers, copy of family card, copy the last 3 months of saving balances, copy SPT, telephone bill, electricity bill, copy of TIN , slip salary, copy of property separations agreement, copy of SIUP for entrepreneurs or self- employed.
My reflections with cars and loans, we will be more easy to buy a car but before we buy a car we have to consider both of our budget, from the quality of the car what we want to buy a new car or a used car, want to buy at the dealership or by private parties and even of its installment payment contracts, and of course with warranties.
Like a Credit card, shopping for a car loan also must have variable include APR, Length of the loan, Monthly payment, Total finance charge, Total to be repaid. The formula to calculate the total cost of loan same as calculate the total cost of credit card. There are type of auto insurance coverage, liability 40-50% of premium, collison up to 30% of premium, comprehensive about 12% of premium, medical, uninsured motorist, towing and labor, rental reimbursement. How insurance rate are set personal characteristics, geographic location, driving record, vehicle characteristics.
Terms and conditions of individual documents you must completed, the application form can be obtained at the nearest branch of car loans company, copy of ID prospective customers, copy of family card, copy the last 3 months of saving balances, copy SPT, telephone bill, electricity bill, copy of TIN , slip salary, copy of property separations agreement, copy of SIUP for entrepreneurs or self- employed.
My reflections with cars and loans, we will be more easy to buy a car but before we buy a car we have to consider both of our budget, from the quality of the car what we want to buy a new car or a used car, want to buy at the dealership or by private parties and even of its installment payment contracts, and of course with warranties.
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