Which Profit is Buying a Used or New Car

Nowadays, the car has become an important and needed vehicle to help with daily mobility. Not only that, the car has also become a necessity and many people have the desire to own it. Not only to help mobility, cars also have high comfort compared to other public transportation.

With so many people interested in owning a car, there are options that you can choose, namely, buying a used or new car. But, of course you will be confused to decide which one to take?

If your finances are large and stable, of course taking a new car loan is not a problem, but it’s a different story if your finances are minimal. Instead of continuing to be confused, here will be discussed about the advantages and disadvantages in choosing to buy a used or new car.

Not only new cars, but also many banks and financial institutions that offer used car installment facilities. The price of a used car usually tends to be cheaper, and of course it allows you to get a loan more easily.

Usually, by buying a used car, the interest rate from the bank is also lower, therefore the monthly installment costs will also be much lighter.

Good Quality with Low Price

Along with the many new car brands, of course the number of used cars will also increase. When viewed, generally the condition of the existing used cars is still relatively good quality, both engine and exterior.

Interestingly, by buying a used car you will get a cheaper price.

However, before buying a used or new car, you have to make sure the condition of the car is still good. Try to use the services of a professional to check it.
Can be used immediately

When you buy a new car, you can’t immediately use it to drive on the road. At the very least, you have to wait for weeks, even months, until the vehicle documents are completed.

Of course this is not a problem if you do not want to use the car. However, for those of you who want to quickly use it, it is certainly a little difficult.

Well, by buying a used car, chances are you can immediately use it. This is because, all letters can change hands immediately when you pay them off.

After that, you only need to change your name so that tax payments can be smooth.

Disadvantages of Buying a Used Car

Selling price tends to be low

When you buy a used car, then pay off all the credit installments, you will certainly see that the price of your car is different in the market.

The price won’t be high, but the low price one gets. Indeed, from year to year, car prices will continue to fall, especially if your car is used.

The emergence of new cars with features, making the price of previous cars continue to decline.

If you take a new car, you may experience the same thing, but of course the selling price of a new car will be higher than a used one.

Extra Maintenance Fee

Do not rush! 6 Considerations Before Buying a Car – buy a used or new car

When you are indecisive about buying a used or new car, then choose to buy a used car, you already know that other people have used it before.

Therefore, you definitely don’t know how the car was used before, whether it was well cared for or not.

Well, if the car of your choice is not maintained regularly, it is possible that when you have it in your hands, the car will have problems.

If that’s the case, before using it regularly, you have to pay extra for servicing the car.

Advantages of Buying a New Car

Guaranteed Guarantee

If you are considering buying a used or new car, then you choose to buy a new one.

In addition to being more shiny, the car is also usually equipped with a warranty from the manufacturer.

Usually car manufacturers will provide a warranty for 36 months or 100,000 kilo meters for all components except tires.

So later, when you find a factory defect in a component or body, the manufacturer will replace it for free.

But you have to make sure that the damage is not a factor of intent or negligence.

So later, when you find a factory defect in a component or body, the manufacturer will replace it for free.

But you have to make sure that the damage is not a factor of intent or negligence.

Get Free Service

Another advantage if you buy a new car is that you will get free service.

Usually every new car will be given free service facilities several times until a certain time limit or mileage.

Meanwhile, the services provided include oil changes and light engine services.

This is because, so that the performance of the car remains good for everyday use.

Guaranteed Car Quality

When you choose to buy a new car, of course it will feel much more fun.

By having a new car, psychologically it will certainly be different from when you buy a used car.

Not only that, you will also know the exact quality of the car, because it is new and has never been used before, so there is minimal damage.

You no longer need to worry about damage, because a new car must have the best quality.

Disadvantages of Buying a New Car
The price is more expensive

Of course, there is a way there is a price. By buying a new car, of course you will enjoy many beautiful and expensive features.

Therefore, buying a new car tends to take a lot of down payment and large monthly installments.

Therefore, if you decide to buy a new car on credit, pay attention to the installment interest rate and other costs such as insurance, administration and others.

Buy a Cash Car, Free From Debt Burden

If you can afford to buy a car in cash, you shouldn’t need to take out a car loan. Don’t be tempted to buy multiple products but on credit. You better focus on buying in cash the products you really need. Some of the advantages of buying a car in cash below can be a separate motivation for you not to be tempted to buy a car on credit.

1. Free of Charge, Easy to Refund

If buying on credit brings a burden, buying with cash actually eliminates the burden. Directly the absolute car belongs to the buyer. The proof is that the car ownership certificate is directly provided. Thus, if there is an urgent need after buying the car, the car can be cashed back and the money can be used.

This is different from the road of credit. You still have to wait for the payment to be paid until the car ownership is handed over to you. During the installment period there is at least a double burden, first of course you have to pay the installment fee every month, while on the other hand if there is a sudden need the car cannot immediately be resold.

2. Avoid Shock Therapy, with No Rising Interest Rates

It was previously reviewed that the interest rate for installments is highly dependent on the loan interest rate, which is all regulated by BI. This means that if at one time there is an increase, the number of installments that must be paid plus interest obviously swells. Therefore, buying with cash frees oneself from the volatile conditions associated with the loan interest rate.

3. Some Dealers Have Discount Programs for Cash Purchases

The discount program from the dealer is an immediate benefit that can be felt and the most visible. Have you ever calculated that buying on credit is much more expensive than buying in cash or cash? Try to calculate directly the purchase on credit and then accumulate the results when compared to buying a car in cash. The results will be surprising where buying on credit is many times more expensive when compared to buying a car with cash.

Purchasing credit will involve a lot of costs, starting from the down payment / down payment, monthly installments plus interest, not to mention the penalty for late monthly payments that can be included in the accumulation of calculations. While cash payments will provide the original price of the car. Not to mention, certain dealers have promos in the form of price discounts or others if the buyer pays in cash.

Adjust to Needs and Finances

Buying anything should be adjusted to the ability. This includes buying a car. It’s a good idea to make an in-depth recalculation of all the costs that must be paid so that they don’t become an excessive financial burden.

Pros of Buying a Car with Cash and Credit

Having a dream car to transport all family members while traveling is certainly the dream of many people. As an expensive asset, owning a car is a luxury so it takes a lot of struggle to buy it. But lately, improving economic conditions have made the growth of car owners in Indonesia also increase.

One of the factors driving the rapid growth of vehicles circulating on the road is the ease of buying vehicles on credit. The presence of a finance company (leasing) has a significant impact on the growth in the number of owners of these four-wheeled vehicles.

Since ancient times, it has been known that it is best to buy anything with cash. This has become a basic economic principle that will free a person from debt that can be a burden both morally, especially materially.

Advantages of Buying a Car on Credit

If you can’t afford to buy a car in cash and have a big desire to own a car, taking a car loan can be a practical solution. Here are the advantages you can get:

1. If for productive purposes, you can increase capital turnover

Even though it is intended as private ownership, there are also people who buy cars not just for family needs, one of which is to support business interests. If so, buying a car on credit could be the best way. The reason is because the capital turnover can still be maintained.

By buying credit, of course there is no need to pay the entire price. Simply by providing a down payment, the rest can be paid in installments. But of course what must be considered is the liquidity of income from the business in question. It must be maintained so that income is not greater than expenditure, this is of course aimed at preventing arrears and installments from growing and causing the car to be withdrawn by the leasing party which could be a source of loss.

2. Psychologically there is a light impression

The second advantage of buying on credit is from a psychological point of view. There is an impression that paying in installments is easier than paying directly in cash. Because the price of a car that ranges from tens to hundreds of millions is not a small amount for an expense at one time.

3. The Speed ​​Factor Is One Of The Reasons

One of the biggest reasons why some people buy a car on credit. With credit, of course, what you have to think about is the amount of DP and monthly installments that are in arrears to be paid. For some people, the desire to immediately own a car can turn into a need. Through leasing or credit, it is enough to pay a down payment and complete the requirements, a car can be driven immediately.

4. No need to pay the total price

Spending money once in the amount of hundreds of millions will obviously reduce the economic capacity at one time. With credit, only a down payment is paid while the rest can still be used to fund other needs. This is certainly much lighter than having to spend the entire savings to buy a car when there are other needs that are not fulfilled.

Disadvantages of Buying a Car on Credit

There are advantages of course there are disadvantages. Although the various advantages above can be considered to encourage buying a car on credit, the following disadvantages of buying on credit also need to be considered. Here are some of the losses that will be borne when buying a car on credit:

1. Become an Additional Financial Burden

Buying anything on credit, including a car, certainly presents its own burden. Because even though the dream car is owned, it is not fully private property. There is still a process before the car is paid off and actually becomes private property, of course through monthly payments that must be repaid within a certain time.

2. Increase Debt, Indirectly

From an economic point of view, healthy finances are debt-free. Installing a car is actually the same as adding to the debt burden that arises from each installment of the car payment.

3. If the Interest is High and Socio-Political Conditions are Unstable, the Burden will be Bigger

This factor is a factor that could arise. Where credit conditions are closely related to the stability of domestic banks. At the same time, if there are things that shake the socio-political conditions in the country, of course, car loans that are currently running are also affected. At least the most likely impact is if there is an increase in credit interest rates.

Each of the advantages and disadvantages as described above can be your consideration before deciding to buy a vehicle on credit. If your financial ability supports buying a car with cash, you can get the following benefits.