financialtreat – will explain about Can You Finance Two Cars At Once? This is the answer! which you will get in the following article. let’s look at this article carefully!
Having two cars is not easy. In addition to the high price, the maintenance cost is also not cheap. Then, Can You Finance Two Cars At Once? If you want to own a car, you must have good financial planning.
Well, in financial planning, there are two points that need to be considered, namely the availability of car operating costs and emergency funds. These two components have different functions. And below are tips for managing finances for those of you who own a car.
Can You Finance Two Cars At Once? This is the answer!
1. Set aside money every month for car emergencies.
An emergency fund is a fund that will be used for unexpected things. In terms of car ownership, this can be classified as funds that will be required when the vehicle requires replacement parts, routine service, and other items.
The emergency fund for the car does not have to be as large as a personal emergency fund. Because this is not adjusted for personal expenses but rather for the price of car components that need to be replaced regularly, Set aside 1 percent or a maximum of 5 percent of your monthly income for a car expense account for emergencies.
2. Distinguish between monthly and annual operating costs.
Operational costs are expenses related to the use and ownership of a car that must also be budgeted for. To make things easier, divide the operational costs into monthly and yearly amounts.
Monthly costs can include gas money for a month, parking and toll fees, and other routine expenses. Meanwhile, the annual fee can include car tax and insurance. Car insurance can actually also be paid monthly if the owner indeed prefers the credit card payment feature and opts for the installment method.
3. Use a segregated account.
Create a new segregated account specifically for operational costs as well as a car-specific emergency fund. The purpose of a new account is so that expenses for the car are not mixed with daily expenses. Or you can also place some of the emergency fund savings for cars in money market mutual fund instruments, considering that the need for replacement parts has different periods of time.
That concludes our discussion of how to manage the finances of two cars.Next, the author will give tips on managing finances for a dream car loan.
Tips for Managing Finances for a Dream Car Loan
Buying a car with cash can help you save money because you won’t have to pay interest on the loan. However, buying a dream car with a vehicle loan or car loan may be an option for those of you who want to own a car but also need funds for other purposes.
Here are some guidelines that can help you apply for a car loan as well as protect your finances so that your finances are not broken, one of which is:
1. Determine the right car.
Make sure the car is in accordance with your needs and financial situation. Don’t buy a car solely for its prestige or style. Yes, because of the high price, you will be determined when you pay the credit installments.
2. Car price survey
After confirming the type of car you want to buy, the next step is to find out what price is offered in the market. You can find out that information by visiting car dealers immediately or through the official website of the dealer or multifinance company.
3. Determine the right source of financing.
In Indonesia itself, there are two sources of financing or car loans that can be used, namely banks and finance companies, or multifinance companies. Each of them certainly has advantages and disadvantages.
4. Prepare DP and other costs.
At this time, the government made a decision on the amount of the down payment for four-wheeled vehicle loans, which is a minimum of 30% of the car price. Think about paying a down payment beyond this minimum so that installments can be easier and paid off faster. As a result, the number of installments has no effect on financial flows.
5. Stay away from down payments on loans.
It’s a good idea to stay away from paying down payments on vehicle loans through borrowing, preferably from relatives or financial institutions. If this is done, it will cause financial difficulties because you will have two credit installments or two installments.
6. The tenor does not exceed the economic age of the car
The interest rate and tenor, or credit time period, that you specify also influence the amount of the credit installments. Make sure the tone specified does not exceed the car’s age or when the car is economical.
Generally, when the car reaches the age of five, prepare a reserve of funds for vehicle maintenance. This doubles your expenses, namely car payments plus vehicle maintenance costs.
7. Determine the best interest rate.
Usually, there are two types of interest rates used on vehicle loans, namely: 1.
- fixed rate
- floating rate.
Learn as much as you can about these two types of interest rates before deciding which one is best for you.
8. Prepare a reserve fund.
Try to continue to set aside some of the income for special savings, beyond expenses for installments. This is to face the ongoing risk of financial distress.
9. Easy requirements
Another thing that must be considered are the requirements. Both banking institutions and finance companies definitely require the ownership of identity cards, salary slips, and savings accounts. However, other borrowing institutions may require documents such as electricity or telephone accounts or land and building tax (PBB).
In applying for a car loan, there are several lending institutions that provide convenience and speed in their services. It is meant to free up your time so that you don’t have to worry about filling out other documents. Make sure all those requirements are complete.
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10. Choose the right insurance
Choose a source of financing (banking or leasing) that cooperates with the right insurance company. Find information about the easy claim procedure at the insurance company. Garda Oto provides convenience for customers during the claim submission process by presenting the Otocare mobile application and also the Garda Center.
The conclusion that can be conveyed on this occasion is “Can you finance two cars at the same time? The answer is that it depends on yourself. Follow our tips, and you’ll be able to set the road and how to finance two cars at the same time.