Fortunately Loss Package Car Loan and Insurance

The rapid sale of automotive business especially car insurance in Indonesia and one of them caused by the ease in obtaining loans . It also creates a new industry with rapid growth are leasing or financing company credit . Not only the banks that took the market potential , but also financial institutions other than banks that finance companies . As a consumer , you must be smart when to buy a car in cash or credit , and what the appropriate insurance product for you and where you take out the insurance products , either through dealers , finance companies or directly to the insurance company directly . The article below will discuss the advantages and disadvantages of these things in more detail .

Advantages and disadvantages of credit vehicles

If you have more money , buy a car in cash is certainly more cost effective than the credit because you will avoid interest charges . However, cash purchases also have some disadvantages , namely :

Loss of Opportunity ( Opportunity Loss )

Buying a car in cash to make cash / savings drained away so you you can not do any other investment or use of these funds for working capital which could potentially generate higher profits from lending . You can compare when buying on credit , you simply pay a down payment of 30 % so that 70 percent can use for working capital or other investments . Of course this is still speculative , that can be beneficial or even detrimental to you two times , because the loan interest expense and possible loss of business . The choice is in your hands .

Loss Time ( Lost Time )

For those of you who do not have much money and want to buy a car in cash , then you have to save it first for several years and after sufficient funds , you can buy a new car . It is also risky given the price of the car is very likely to rise as the rate of inflation .

Now what about your car insurance ? How can the right to choose the insurance product ?

Finance companies usually require you to take a loan package with insurance . Special first-year and new car loans ( not used) , you will usually be asked to take the All Risk insurance package to protect your car in total , only then you may choose another insurance package in the next year , of course with the same insurance company and has been determined by the lender who is already working with car dealers . So you can not choose other insurance companies as you like .

Advantage Package Car Loan and Insurance

The advantage of this package is an easy process , you do not need to bother thinking about the details of premium , file completeness insurance , survey the condition of the vehicle and so on , as all are listed in the package with your car loan approval process of the finance companies where you take a credit vehicle . You only need to think of a nominal advance credit application and document and measure your ability to pay installments .

Losses Package Car Loan and Insurance

If you buy a car at a dealer either credit or cash , the dealer will offer you a wide range of additional products . It is most wise when you experience this rejection is doing unless you really understand that the product offered is you need and you can get a reasonable price . In principle, if you take out an insurance package at the dealer , then you will get the following disadvantages :

more expensive when compared to taking a direct insurance company in the insurance

no cost should you spend as a reward for cooperation dealer that sells insurance products , and the cost was of course charged to the buyer

Beware of offers such irrational interest zero percent interest . It is generally just a marketing language , because in practice there are other costs increased as a cross-subsidy for the low interest . In addition , dealers sometimes offer "cash back" or a special discount program for fresh graduates as insurance , the owner of a particular bank credit card , military members , and so on . Programs like this that you should dig more complete information so that you can join the program and benefit from it .