Nowadays, a car is the main mode of transportation that people use to travel safely and comfortably. From a safety standpoint, it avoids heat and bad weather. Flexible travel time and the convenience of a private car during this new normal phase highlight the comfort aspect of car ownership. So how can everyone join the car ownership world? The simplest and the shortest answer is to pay for the car using our full hard cash at a new car dealership or a used car showroom. However, not everyone can acquire a vehicle using that method. The other quick and easy way to get into car ownership is to get some aid from financing companies or banks that can provide a car loan.
In short, a loan is an agreement between customers and the bank or financial service that says that they will give customers the money to buy a car. In return, the bank will keep the title of the vehicle, more commonly known as BPKB, in their possession until customers pay all monthly payments with interest on an agreed-upon time. Readers need to understand essential words before they sign a car loan: Tenor, more commonly known as terms, is the set period that we can choose when we apply for our loan. Typical terms are set from 1 until 4 years. Some financing companies such as BCA Finance can offer an up to an 8-year loan term. The second word we should know is Down Payment or (DP), an initial fee that we need to pay to the dealership or showroom. This payment will affect the loan amount. Down payment usually ranges between 20% to 30% of the car price. The loan principal or loan amount is the money that one borrows from the bank or the financing companies. The loan amount is calculated from the cost of the vehicle minus the down payment that the customers initially paid to the dealer or showroom. The next word is interest, which is fees customers must pay to credit providers in return for loans obtained. Credit interest in car loans is usually a flat interest, meaning it doesn't change throughout the loan term. Monthly payment or instalments are also crucial as it is defined by several fees that the customer must pay each month at a specific date to the bank for the term period. The monthly payment has to be agreed upon in advance. Last but not least is penalties; if the consumer fails to pay the instalment up to that specified date, the lender will give a penalty to the respective borrowers. The amount of the fine is usually calculated from the number of instalments and the number of days past the due date.
Those are some common languages that the public needs to know before getting into their first car loan. Usually, the bank or the financial service would only give the loan for those already financially matured, typically employed, or self-employed (i.e., having their own business). However, students who still want to apply for a car loan can still do so by attaching their parent's information per their approval as the collateral. BCA Finance is one of the financing services that can help the public to apply for their first car loan. BCA Finance is one of the subsidiaries of PT Bank Central Asia Tbk. With the big names of the BCA Bank behind it, there would be little doubt regarding the credibility and quality of BCA Finance on providing everyone with a great product and service for their first car loan! As a flagship product, BCA Finance offers a low-interest rate, such as 2.99% for a three year term period for customers who can get their dream car with a low monthly payment. BCA Finance could be considered as the perfect solution for everyone's financing needs.
Source:
BCA Finance
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