Aurora K To apply for a used car credit, there are several important requirements that you must meet, starting from choosing the right car to ensuring timely payments.
Buying a used car through credit can be a practical solution for those of you who want to own a vehicle without having to pay the entire amount directly.
However, before applying for a used car credit, there are a number of requirements that you need to know so that the credit process runs smoothly and is approved by the financing institution.
Starting from choosing the right car, choosing a trusted leasing company, to meeting the document requirements, each step plays an important role in ensuring that your credit application is approved.
In this article, we will discuss 10 used car credit requirements that you must pay attention to so that you can get your dream car with favorable terms.
1. Don’t Choose a Car That’s Too Old
One of the first requirements for Used Car Credit is choosing a car with the right age. Each leasing company or financing institution has rules regarding the age limit of cars that can be applied for credit.
Usually, used cars that can be applied for credit are cars that are no more than 15 years old. If the car is too old, your credit application may be rejected, because the leasing party considers the condition of the car which is more susceptible to damage.
So, make sure to choose a car that is still relatively young so that your credit application is more easily approved.
2. Choose a Trusted Leasing
After choosing your dream car, the next step is to choose a trusted leasing company. It is better to avoid companies that are not registered or supervised by the OJK (Financial Services Authority), because the company could operate illegally and pose a major risk in the future.
Choose a legal leasing company that has obtained official permission from the OJK to ensure that the credit process runs safely and in accordance with applicable regulations.
By choosing a trusted leasing company, you will also get legal protection if there is a problem in the credit payment process.
3. Fulfill Document Requirements
To apply for a used car loan, you will be asked to complete several important documents. These documents are very common and easy to obtain, such as:
- Identity card (KTP, SIM, or passport)
- Family cards
- Pay slip as proof of income
- Proof of payment of land and building tax (PBB), electricity bill, or PDAM as proof of domicile
- Taxpayer Identification Number (NPWP)
Make sure you have prepared these documents before applying for credit so that the approval process runs faster and smoother.
4. Survey from Leasing Company
One of the requirements for used car credit that you need to know is the existence of a survey conducted by the leasing company. Usually, the financing company will send an officer to check the condition of the vehicle that will be used as collateral.
The officer will assess whether the condition of the car is worthy of being given credit and whether the price of the car is in accordance with its physical condition and market.
In addition, the age of the car and the completeness of the car documentation are also considered in this process. Therefore, make sure the car you are applying for credit for is in good condition and in accordance with the set price.
5. Choose Insurance for Car Protection
One thing that is often forgotten by applicants for used car loans is choosing insurance for the car they are going to buy.
This insurance aims to protect the vehicle during the credit period, considering the risk of damage or loss that can occur at any time. There are two types of car insurance that are generally available:
- All Risk: Covers all risks that occur to the car, both minor and major damage.
- Total Loss Only (TLO): Covers damage to the car of more than 75% or if the car is lost.
Choosing the right type of insurance is very important to protect your investment and provide a sense of security during the credit period.
6. Choose the Appropriate Tenor or Term
The tenor or term of the credit is one of the things that needs to be considered when applying for a used car loan.
The longer the tenor, the lighter your monthly installments will be, but the interest charged tends to be higher.
Conversely, a shorter tenor will make the monthly installments larger, but you can pay off the debt faster.
Choose a tenor that suits your financial capabilities, so that you are not burdened with installments that are too large and can still meet your payment obligations on time.
7. Make Sure to Pay on Time
One of the credit requirements that must be adhered to is timely installment payments. In the credit agreement, you are required to pay installments every month according to the agreed date. Late payments can result in quite large fines, and worse, can damage your credit score.
Therefore, make sure you have good financial management to ensure timely payments, so that the credit can run smoothly and you do not face problems in the future.
8. Check the Reputation of the Leasing Company or Financing Institution
Before applying for credit, it is very important to check the reputation of the leasing company or financing institution you choose.
Check whether they have positive reviews from previous customers and whether they have a good track record in handling credit applications. This can give you a sense of security that the credit process will run transparently and professionally.
9. Check the Interest Rate Charged
Before applying for a used car loan, make sure you check the interest rate charged by the leasing company.
Each financial institution has a different interest policy, and higher interest can make your monthly installments larger. It is better to choose a company with reasonable interest and in accordance with your payment ability.
10. Understand Other Terms in the Agreement
When applying for a used car loan, you also need to understand other terms in the credit agreement, such as administration fees, insurance fees, and early repayment provisions.
Make sure you read and understand the entire contents of the agreement before signing the contract, so that there are no unwanted surprises later.
Applying for a used car loan is not as difficult as imagined, as long as you meet the applicable requirements. Starting from choosing a car with the right age, choosing a trusted leasing company, to understanding the provisions in the credit agreement.
By paying attention to each of these requirements, you can get a New Car Credit or used car loan that suits your needs and abilities.
Also, make sure you make all payment obligations on time, so that the credit process runs smoothly without any obstacles and helps maintain a good credit score.