Getting a Car Loan? Don't Forget This Formula

KatadataOTO – Many vehicle purchases in Indonesia, especially in the entry-level segment, are made on credit or by installment. The schemes are also diverse and can be adjusted to the consumer's ability.

There are several things prospective customers need to consider when deciding to finance a four-wheeled vehicle. One of them is the installment amount.

“We have a rule, (total installments) should be 30 percent of income. We continuously try to communicate this to consumers,” said David Thamrin, Product and Growth Division Head of Seva, when met in Jakarta some time ago.

He emphasized that the maximum figure is 35 percent of the consumer's total salary or income. 

Photo : TAM

This formula is claimed to be ideal for ensuring the sustainability of car installments until they can be fully paid off by the buyer.

“From a leasing perspective, for a car application, we usually see that the installment itself should not be more than 30 to 35 percent (of the salary), which is actually quite ideal,” David affirmed.

To make it easier for consumers to determine car installments according to their needs and financial condition, David explained that there is a service provided through the Seva application.

“We have prepared the features, for example, a loan calculator and instant approval. This can certainly be a tool to help the people of Indonesia be wiser in choosing a suitable car,” said David.

Then there is a car discovery platform feature for consumers when they want to find a vehicle that matches their down payment.

This set of tools from Seva is expected to serve as a guide for the public when they want to buy a four-wheeled vehicle in installments, so that the process runs smoothly until the car is paid off.

Entering the month of Ramadan, Seva has also provided a number of programs to facilitate vehicle purchases, such as discounts.

Photo : Courtesy

“There is a cashback of IDR 500 thousand, a new car cashback of IDR 2 million on top of the dealer's discount, we add more. It should be very attractive,” said David.

Then after making a purchase, the car sales and credit service under the auspices of Astra also helps manage documents and vehicle papers like the STNK, until everything is complete.

“We hope this year we can get the Lebaran effect to increase sales,” he said.