Discourse cheap mass production of car currently being bombastic . Car has become one of someone that had a higher social status . However , before buying a car , there are two major questions that should you decide .
What are the considerations ? Consider the exposure of Finance Financial Planner of ZAP Pritchard Hapsari detikOto Ghozie as quoted from the official website on Friday ( 09/20/2013 ) .
1 . Buy Used Car or New?
Ideally everyone would like to have a new car . It is important to remember that the car is not an investment . In fact , the car is one of the assets which decreased consumption of greatest value in the first year . Therefore , think about how the future level of use of your car . In addition , the benefits of buying a new car is the collateral package service of car dealers generally for the first 3 years .
When buying used car , you should know the history of the car is purchased . In addition , please feel free to read expert reviews or former users in newspapers or magazines on the type and brand of the car . Do not buy until you reduce the budget in the beginning , but the car will constantly get in the garage and took the high repair costs .
2 . Preferably Cash or Credit ?
In the current interest rate is high as it is today , of course it would be better if we buy in cash . Thus , the monthly cash flow can be set aside for the greater interest of saving and investment , in addition to be used for living expenses . However , if the funds are not sufficient , while the need is urgent , then the choice of course on credit . If purchased with a credit vehicle of choice , consider the following ;
Total Cost Car Purchase = Purchase Price + interest + other charges ( insurance , repairs ) .
Compare loan options . Identify at least three alternative credit facility of 3 bank or financial institution before you buy the car . Compare how the effective interest rate ( ilustasi : 6 % pa flat rate = 11.5 % pa effective ) , administrative costs , insurance costs , and fees .
Do not forget to provide a down payment of at least 35 % of the total purchase price of the car .
Vehicle installment amount does not exceed 20 % monthly income .
