Financing for Transportation Needs

The growth of the number of cars in Indonesia from year to year indicatesthe public’s high interestand needsof cars as means of transportation.

According to data compiled by Statistics Indonesia (BPS), the number of cars in Indonesia in five years up to 2015 showed 9% increase on average.People too can choose from various new models that are released every now and then.

On the other hand, theirpurchasing power is subject to the rising prices of new cars.

According to Indonesia Sales Satisfaction Index in 2016 published by JD Power, the selling price of vehicles is 11% higher than the previous year’s average.

Thus, it is not surprising that buyers turn to loan to purchase cars to fulfill their transportation needs.

As an illustration, Association of Indonesian Automotive Manufacturers (Gaikindo) Chair Sudirman Maman Rusdi has said before thatin 2015 83%-85% of car sales were made on loan, a rise from 75% in 2014.

“It means that in fact, people need cars, but they are hampered by purchasing power eventhough the loan tenure has been prolonged to four years from the initial three years,” Sudirman said as cited fromKompas.com, on Tuesday (August 11, 2015).

Many people then opt for used cars, while still choosing loan for payment. Opting for used cars is also not surprising, considering the net income of Indonesians that are high school graduatesis at Rp2.8 million on average, according to data by BPSin February 2017, while for Jakarta the net income is at Rp3.028 million on average.

Based on this data, around one-third to half of the income can be set aside to pay the installments of used cars. Moreover, most car dealers have provided loan payment scheme with five-year tenure, rather than four.

Besides that, with the release of new models of cars every year, buyers have more and more options to choose from according to their needs.

Mobil88, a subsidiary of Serasi Autoraya (SERA) and part of Astra, offers various choices of used, well-maintained cars.

Mobil88, specializing in the trade of used cars, offers buyback guarantee. It means that the cars on sale are functioning normally, have not been involved in accident or flood, have untampered odometer with valid number of kilometers, and have documents with guaranteed authenticity.

Thus, the guarantees and availability of loan facility as mentioned above enable customers to have their needs of cars fulfilled safely and comfortably.