A car is a dream and a means of transport for many people. Although the price is quite high compared to motorcycles, in reality, car companies continue to see increased sales. This means that their products sell well in the market.
The high public interest in car ownership also opens up opportunities for leasing companies and banks to provide credit services to the public. With a car loan from a bank or financial institution, you can get your dream car.
Although offering car loans, banking and leasing have advantages and disadvantages that you should be aware of. Car loans from banks usually offer lower interest rates than finance companies. Of course, it is very easy for those who want cheap car loans with light down payments.
However, applying for a car loan from a bank is usually a longer and more complicated process than applying for a loan from a finance company. The approval process is generally more stringent than leasing.
Meanwhile, leasing is a faster and less complicated process. But you will be charged a higher interest rate than with a bank car loan. You will also have to pay for credit, insurance and savings.
So if you prefer a loan from a bank, here are 5 tips you should know before applying for a car loan from a bank.
Choose a car according to your budget
Using a line of credit does not mean you are free to choose the car you want to own. Put needs before needs. The reason is that you can enjoy various car models at attractive prices and offers at discount offers in car showrooms.
So before you go to a car dealership, you should calculate your budget and the type of car you need. Find the brand and type of vehicle that best suits your needs and budget. For example, if you decide to put down 200,000,000 rupees just for a 7-seater economy car, stick to that plan and don’t be tempted to sell.
Find out more about what responsibility you will take on.
Many retailers are now offering cheap promotions. Don’t be fooled by this event. Remember that cheap down payments usually come with long repayment periods and high interest rates. Therefore, the same applies to higher monthly payments.
Don’t forget to simulate your own credit. Then you will know what responsibility you have to take. You have the opportunity to compare one showroom with another and choose a reference price and installments.
correct financial records
The bank knows your financial records so you don’t have to lie to surveyors. If you don’t think you have a satisfactory financial history, address this issue a few months before applying for a loan. Balance your expenses and income. If possible, you should also leave a monthly balance.
Banks can also check your credit history with BI Check, so you know if your repayments are suitable before using your credit service. Your car loan application is less likely to be approved if you have trouble making your payments.
Three tips before applying for a bank car loan. In addition to these tips, you must of course meet all the documentation requirements your bank needs. The usual requirements are photocopies of identity cards, family cards, credit cards, pay slips, photocopies of passbooks for the last 3 months, electricity, telephone and water bills and photocopies of PBB. Are you ready to apply for a car loan from the bank?