Life Style

A Simulation: How to Correctly Calculate your Car Loan

7 October, 2021

Cars are one of the most popular types of vehicles in Indonesia because cars have more complete facilities than motorbikes. Taking a loan is a way to purchase a car at a lower cost. Many banks or leasing companies now provide car loan simulations, so that taking a credit becomes easier.

The concept of calculating a car loan is very important to learn before you decide to pay a down payment (DP) and have installments for credit. There are several simple ways to learn a car loan calculation simulation.

Simulation of Car Loan Calculation

When you want to have a new or used car and want to buy it on credit, you have to first find out about the leasing company that provides the service. Essentially, first of all, you want to choose one known as a professional leasing company.

Each leasing company usually prepares various credit offers, so you can choose the credit that suits you. In choosing a lease you need to be careful because not all companies can be trusted.

There are several recommended leasing criteria for you to choose, such as providing competitive down payment offers, flexible credit terms, lower interest rates, and realistic price offers to compete with competitors.

On top of it, you can look for various information related to car loans on the internet. You can also ask directly to the company or bank that provides credit services to get clearer information. If your understanding is complete, then you can immediately adjust the funding for the car loan to ensure that it is suitable for your financial condition. Don’t let the installments be too big as it can burden your expenses later.

Adjustment of financial conditions will be very useful to determine the DP that will be paid first. Not only that, but this will also affect the determination of monthly car installments.

Basically, the greater the amount of down payment you spend, the more opportunities you have to get credit with light installments. To make light installments, you can ask for a DP discount from the leasing party.

How To Calculate the Right Car Loan Simulation

1. Determine Down Payment

When you buy a car with a price range of 150 million and a 20% down payment, then you have to pay around Rp 30,000,000 for DP. In general, the minimum amount of DP will usually be determined by the leasing party or the bank that will provide the credit.

The 20% percentage is the most common DP that you can find. To get you a full picture of where the RP 30,000,000 DP comes from, you can understand the calculation formula below:

• Down Payment = 20% x Total Car Price.
• The result, 20% x Rp 150,000,000 = Rp 30,000,000.

2. Determine the Principal Amount of Credit

If you have received the required amount of DP, of course, you must immediately calculate the remaining amount of credit or credit principal. Knowing the results is very easy, because the formula is very simple:

• Credit Principal = Total Car Price – Down Payment
• The result, Rp. 150,000,000 – Rp 30,000,000 = Rp 120,000,000

3. Determine the Amount of Credit Interest

After knowing the principal of the loan, you can then calculate the interest rate that needs to be paid. Similar to calculating the principal of a loan, determining or calculating the amount of the rate is also very easy.

You can start by multiplying the loan principal by the interest rate, which is usually determined according to the credit term or tenor that has been agreed with the leasing party.

• Interest Rate = Credit Principal x Interest Rate According to Percentage

If you take a credit tenor of 3 years, the percentage interest rate is around 8%. The result, Rp 120,000,000 x 8% = Rp 9,600,000 x 3 Years = Rp 28,800,000.

4. Determine the Installment Amount

You can do the amount of car loan installments quickly because it’s very easy to do. After obtaining the amount of credit interest that needs to be paid for the next 3 years, then you can enter the calculation of the amount of credit.

The way to calculate it is by adding the loan principal with the interest rate and dividing it directly by the tenor or credit period.

The result, (Rp 120,000,000 + Rp 28,800,000) : 3 years (36 months) = Rp. 4,133,333.

5. Determine Administration Fee & Insurance Fee

Car insurance rates on credit are also necessary to be calculated. To do so, take 9.5% (total insurance costs for a tenor of 3 years) x total price of the car = 9.5% x Rp 150,000,000 = Rp 14,250,000.

Not only insurance, but you can also calculate the administrative costs that need to be incurred when making a car loan. The total administrative cost of a car loan for a 3-year tenor is usually around Rp 550,000.

The total cost for the initial payment of a car loan is: Down Payment + Insurance Rates + First Month Installment + Administration = Rp 30,000,000 + Rp 14,250,000 + Rp. 4,133,333 + Rp 550,000 = Rp 48,933,333.

Car Loans with Wuling Finance

For those who are planning to buy a Wuling car, the Wuling Finance credit processing service is now available and accessible more easily through the latest technology. Wuling Finance offers practical and easy steps for the credit process.

First, we will confirm your eligibility for credit. If accepted, the next step is to calculate the monthly payment. After that, you can choose the desired Wuling car and submit a financial application. After all the processes are accepted, you can start borrowing money and bring your Wuling car home.

To make a payment, you can choose a credit payment system via ATM, Internet Banking, Mobile Banking, or a teller at the bank. Contact Wuling customer care at 0800-111-5050 for car loan details at Wuling Finance.

That is all a complete review of the simulation of car loan calculation. We hope it useful for you!

Cars are one of the most popular types of vehicles in Indonesia because cars have more complete facilities than motorbikes. Taking a loan is a way to purchase a car at a lower cost. Many banks or leasing companies now provide car loan simulations, so that taking a credit becomes easier.

The concept of calculating a car loan is very important to learn before you decide to pay a down payment (DP) and have installments for credit. There are several simple ways to learn a car loan calculation simulation.