When going to buy a car on credit, then it is fitting for you to know the amount of monthly installments and various kinds of fees that must be paid at the time of credit application. This is certainly very important to do, with the hope that you will have a clear picture and be able to measure the condition of your ability to pay for credit purchases to be made.
Various activities and busyness at office hours, often makes someone not have enough time to just go to a financial institution or bank and do a car loan simulation to buy, maybe you are also one of them. This is understandable, given the very limited time and distance that can take a long amount of time on the trip is also worth considering. But as a wise step in overcoming this, you can try to do a credit simulation yourself.
Car Loan Simulation
Even though you have a myriad of activities and activities that are obstacles to being able to do a car loan simulation at a financial institution or bank, you still have to make an effort to do the credit simulation before finally deciding to buy a car.
One way you can do to make your own credit simulation is by searching and finding sites that provide credit simulations online. There are many financial institutions that provide online simulations on their site and you can easily fill it out yourself. One of the best is the Cermati.com site.
Basically, the contents of each simulation can be different from one another, this is because the provisions owned by each financial institution are of course also different. But even so, the calculation scheme applied, in general, will remain the same.
Do some simulations, so you have the most appropriate picture and choice that suits your financial condition. Make sure you understand and understand clearly the various terms used in a simulation, this will help you do a simulation easily.
Terms in Car Loans
When going to do a credit simulation online, then you will be faced with a variety of terms that can make you confused. Check out the points below related to terms commonly used in car loan simulations:
1. Price on the road
The price of On The Road or commonly abbreviated as OTR is the purchase price of a car after adding all taxes and various other documents, such as vehicle registration and BPKB.
So in other words, the price of On The Road can be said to be the overall price you have to pay when you are going to bring a car home, where the price includes the price of the vehicle (car) along with its valuable documents (STNK and BPKB).
2. Off the Road Prices
The price of Off The Road is the purchase price of a car and is not included in the documents. When you buy a car with the price of Off The Road, then you only pay the price for the vehicle (car) only and you still have to pay a sum of funds to take care of the documents, namely STNK and BPKB.
The tenor is the term of the loan period that is usually determined in months or years. Basically, the tenor given for a used car loan will be shorter compared to the tenor given for a new car loan.
In the online simulation, the tenor will be filled automatically by the simulator or can be clicked through the column provided on the simulation page.
4. Credit Ceiling
The credit ceiling is the actual amount of debt that must be paid by creditors. Calculation of the amount of credit ceiling will be done by reducing the price of On The Road with a number of down payments paid.
The credit ceiling is the actual amount of debt submitted and must be paid after adding a number of fees and interest charged by the bank.
5. Insurance Policies and Premiums
Insurance policy and the premium is a form of agreement that occurs between the buyer and the insurance party. An insurance policy is an administrative fee that is collected by the insurer and will only be paid at the beginning.
While insurance premiums are costs that must be paid every month as a form of liability for a creditor for his participation in the insurance program.
In practice, leasing companies will implement an insurance program in the purchase of credit that you will do, usually, they will offer several types of insurance that you can choose as below:
- Comprehensive or All Risk Comprehensive
Comprehensive is another word for all-risk insurance. This is an insurance that will guarantee all costs needed for all types of damage that occur in your vehicle.
The amount will be determined based on a percentage, which is about 1.5-3% of the OTR price of your car each year. The more expensive the OTR price of a car, the smaller the percentage charged in the insurance.
- Total Loss Only
This type of insurance only guarantees the total loss that occurs in a car, where the loss is in the form of loss due to theft or heavy damage due to accidents that reach damage above 70%. TLO insurance costs are relatively cheaper, which is only around 1% per year.
Basically, leasing parties will usually use a combination of this two insurance in car loans, namely by applying the All Risk insurance in the first year and TLO insurance for the following year. But if you still want to use All Risk insurance in year 2, then you can add premiums for the second year.
6. Administrative Costs
Administrative costs are a number of costs incurred to administer credit administration and will only be paid once at the initial submission. The amount of administrative costs will vary and depends on the policies of each financial institution, usually around USD. 500 thousand – USD. 600 thousand.
7. Fiduciary Fees
Fiduciary cost guarantee is a debt agreement that states that the movable object that is being submitted for credit is owned by the debtor legally, even though it is still in credit status and the vehicle’s BPKB is used as collateral. Usually, fiduciary fees will be charged at the beginning and at the end of the credit agreement.
The amount of fiduciary costs will be adjusted to the price of the car to be credited, namely: USD 25,000 for vehicles under USD 50 million, USD 50,000 for vehicles whose prices are above USD 50 million. It’s a good idea to prepare a fund of USD 100,000, or according to the price of the vehicle, you are going to credit for the cost of fiduciary collateral.
Perform a Live Simulation
Although there are currently many online simulation services, it’s a good idea to keep doing the simulation directly by going to the financial institution of your choice and getting a detailed and certain explanation from the staff there.