Nowadays, private cars have become a primary need for people with high mobility. However, considering that cars cost dozens to hundreds of millions of rupiah, we need to arrange the strategy to own cars without upsetting cash flow.
From financial side, owning a car is no longer difficult because we can now buy car using auto loan. This certainly makes it easier for us when planning our finance.
However, before deciding to take auto loan, we must consider several things such as the type of car needed as well as our financial situation. Choosing the type of car is not only about specifications and features, but also about price that fits our budget.
So, before choosing the right type of car, it is better that we review first our financial situation. We should not fall into debt because we want a car with a price that is outside our budget.
According to financial planner Prita Hapsari Ghozie, as cited from Detik Finance, the main principle of debt that must not be disregarded is that the ratio should not be more than 35% of monthly income. So, the first thing that needs to be checked is our current debt ratio.
Debt ratio is the ratio of the total debt we have every month (for example, house loan and credit card) to our monthly income. If our total debt is still below 35% of our income, calculate the margin to know how much money still can be allocated for paying car installments.
Take for example that our monthly income is Rp10 million with a debt of Rp1.5 million from credit card and other debts. The ratio of healthy debt is 35% of Rp10 million, which is Rp3.5 million. Therefore, car installments should not be more than Rp2 million every month.
However, this amount can be increased if we are willing to reduce other debts. One of the ways is to reduce credit card usage. After paying off credit card debt, stop using it so that the money can be used to pay car installments instead.
After knowing the amount of healthy debt for cash flow, we can start searching for the car that suits our needs and budget most. If the budget is low, we can choose Low Cost Green Car (LCGC) that nowadays come in many modern and comprehensive models.
LCGCs are offered at an affordable price. Moreover, it consumes less fuel and is easier to maintain so that we can reduce the monthly cost.
This type of car is usually priced around Rp90 million–Rp150 million, depending on the model. Of course, we still can buy it for an even lower price by buying a used one, which is even friendlier to our pocket than buying a new one.
Furthermore, the price is often offered with low down payment. So, we do not have to drain our savings for the down payment. We can also choose an installment scheme that will be easier on our monthly expense.
However, this financial strategy must be accompanied by foresight when buying the used car. We must choose a trusted used car showroom that can guarantee the car we’re buying is in a good condition.
This guarantee is offered by the showroom of mobil88, subsidiary of PT Serasi Autoraya (SERA) that is experienced in the selling and buying of used cars. All cars bought from mobil88 will receive buyback guarantee.
This guarantee ensures that the car has never suffered from flood or a crash. Moreover, the odometer is not tampered with, so customer can trust the car’s age. The car documents are also authentic and complete so that customer will feel safe and comfortable.
Not only that, mobil88 also performs comprehensive checks before selling the car. Customer will get high-quality used car because car checks are done four times to maintain quality.It is hoped that people with high mobility can still own cars to support their daily activities without upsetting their cash flow so that their financial goals can still be achieved.