The following is an example of calculating a used car loan simulation, so that you know the cost component and how to calculate it. This guide is an illustration, so you can better compare used car loans.
Examples of Used Car Loan Simulation Calculations
Have you ever done a calculation or simulation of a used car loan?
If you do a simulation of a used car loan, you will be asked to fill in some information, such as car prices, down payment amount and credit tenor. It is best before you fill out the calculator, you already understand the definition or definition of these terms.
If you have never done a calculation, try to consider the following example:
- ABC car loan simulation calculator
- IBB car loan simulation calculator
- NNI car credit simulation calculator
- AprilBank Indonesia car loan simulation calculator
- The ABC Finance car loan simulation calculator is here
- CNC car credit simulation calculator here
- Mobilmobil Finance car loan simulation calculator here
- Siramas Multifinance car loan simulation calculator here
The question is, how do banks and / or leasing companies calculate interest and installments of used car loans?
In general there are three components of costs that must be taken into account, namely: interest costs and principal installments, other costs (administrative costs) and insurance costs. Let’s discuss them one by one
Down Payment is a minimum of 20% of the price of the car.
Credit ceiling the difference between the price of the car and the down payment.
|Car Prices||= Rp. 200,000,000|
|Down Payment (DP)||= 20% x Rp. 200,000,000= Rp. 40,000,000|
|Credit Ceiling||= Rp. 160,000,000|
Interest that must be paid is calculated in a way
- Credit interest = 8% per year
- Credit Tenor = 36 months (3 years)
Monthly Installments = (Credit Ceiling + Interest to be Paid) / Tenor
|Monthly installments||= (IDR 160,000,000 + IDR 38,400,000) / 36= IDR 5,511,200|
- Insurance premium = 9.5% per year
- Administrative Fee = Rp 550,000
|Insurance premium||= 9.5% x Rp. 200,000,000= Rp. 19,000,000|
The total funds that must be prepared for the first payment to the bank or leasing company are:
Down Payment + First Month Installments + Insurance Premiums + Administration Fees
40,000,000 + 5,511,200 + 19,000,000 + 550,000 = Rp. 65,061,200
How about? Are you interested in buying a car? You can also prepare funds to buy a car by counting it in the our Application.
Are Used Car Loans Profitable?
Try to continue the calculation above:
- Year 1 = 65,061,200 + 11 x 5,511,200 = Rp 125,684,400
- Year 2 = 12 x 5,511,200 + (9.5% x 0.9 x Rp. 200,000,000) = Rp. 83,234,400
- Year 3 = 12 x 5,511,200 + (9.5% x 0.9 x Rp 180,000,000) = Rp 81,524,400
* calculation assumption : a decrease in the price (depreciation) of the car 10% annually.
Continuing the question, is used car credit profitable? The answer depends, depending on the value of the selling price of the used car.
- If at the end of year 3 the selling price of the car is IDR 80,000,000, then the used car loan is not profitable.
- If at the end of year 3 the selling price of the car is IDR 180,000,000, then the used car loan is still profitable.
Usually the calculation of used car loans becomes unprofitable if someone repays a car too long (installments of more than 3 years), cars with a market that is not too large and / or a car manufacturer stops operating in Indonesia.
In your opinion, are car loans including productive loans or consumer loans?