Difference between Motor Loans and Leasing and Banks
Motorcycle loans are a way to buy a motorbike with payments in installments or in installments. The ease of ownership of two-wheeled vehicles is what makes the population increase every year.
There are two motorcycle lending institutions, namely leasing and banks. Each has its advantages and disadvantages. Submitting a motorcycle loan can be done to purchase new motorbikes or used motorcycles. Of course the conditions also vary.
Installment of Motorbikes Through Leasing
Leasing is known in Indonesia as a provider of financial services. The process of applying for credit through leasing is even considered easier with requirements that are not too difficult.
New Motorcycle Credit Terms through Leasing
- ID card for the husband and wife or guarantor (if married).
- Family card or marriage certificate.
- NPWP (Specifically for credit value above IDR 50 million).
- Proof of ownership of residence.
- Proof of income or income information, such as salary slips.
- Pay down payment.
The above requirements are general and are usually requested when applying for a motorcycle loan. It is not uncommon for the conditions to be made easier by simply showing the KTP and Family Card and enough to pay the down payment.
Clearly, the credit rules have been regulated by the Financial Services Authority (OJK), especially related to the regulation of advances of 5-25 percent of the price of motorcycles. These rules are contained in the Circular of OJK No47 / SEOKK.05 / 2016 concerning the down payment for motorized vehicles for both conventional and sharia finance companies.
Leasing in general already has its own motorcycle credit table. The table shows the price of the motorbike, the amount of down payment, tenor, and installments to be paid.
As a motorcycle loan simulation, the price of the CW Beat Honda in 2019 is around Rp. 15,550,000. With the simulation provided by one of the leases online, the following information is obtained.
|12 months||24 months||36 months|
|Down payment||IDR 3,200,000||IDR 3,200,000||IDR 3,200,000|
|Credit Points||Rp15,885,384||Rp. 18,524,160||Rp21,403,368|
|Total payment||Rp. 19,085,384||Rp21,724,160||Rp24,603,368|
Leasing or other financial institutions never inform the interest set. But from the simulation it can be seen that the longer the installment duration, the higher the interest rate will be even though it seems that the monthly payment is lower.
Motorcycle Installments Through Banks
Purchasing a motorbike on credit can also be submitted to a bank that provides motorcycle loans. Requirements for filing motorbike loans through banks are not very different from leasing . In fact, the requirements set by banks are usually more, including:
- Copy of ID card.
- Photocopy of savings book cover .
- Current account proof or account mutation.
- Copy of partner ID card.
- Copy of family card.
- Salary Slip / Income Statement.
- Photocopy of electricity / telephone / photocopy of house certificate.
Often this question is always present. Which is better, credit through leasing or bank? When viewed from the interest rate set, credit through banks is much lighter. It’s just that the process is tight and can take a long time.
The following is an example of starting a motorcycle loan with the same item, but the difference is now using credit services from the bank.
|12 months||24 months||36 months|
|Credit Points||Rp14,228,916||Rp15,842,784||IDR 17,564,400|
Strengths and Weaknesses of Motorcycle Loans
There must be two sides to a decision, including when applying for a motorcycle loan. Before that, first read the information in the following:
Motorcycle loans have become an easy and inexpensive alternative to owning a dream motorcycle. The interest offered is quite varied depending on the brand of the motorbike, the price of the motorbike, and the installment tenor.
Motorcycle loans are generally protected by insurance. So that the owner can feel more secure and comfortable because the motorbike has been protected. Thanks to the mild installment fees, you can allocate funds to other posts so that it won’t disrupt the monthly balance sheet.
Lack of Motorcycle Loans
Some people often do not take into account maintenance costs as a new burden on monthly expenses. Therefore, be sure to prepare a maintenance budget before applying for a motorcycle loan.
Motorcycle loans are not without risk. If there is a late installment payment according to maturity, then there is a fine that must be paid. In fact, if you don’t pay installments in a row, the creditor will confiscate the motorbike.
As you can learn from a motorcycle credit simulation that the interest given is very high, especially if the chosen tenor is long enough. So choosing a motorbike loan requires a wise decision given the large difference in price.