Surely we feel excited to envelop you once a car loan application has been approved. Feeling proud, there is a new reason to work, but you can now use an expensive car. Even those who have worked for a long time have not been able to get an expensive and new car.
But you forget, the high monthly installment and reaching almost 50% of salary does not include other incidental costs such as car fuel, maintenance costs, tolls, parking, road tax, takaful and so on. Wrong day of the month, at the end of the month there is no money to eat.
All the money is spent on setting up the car.
For most young people, lifestyle is still very important. While a luxury car is not a guarantee of a pleasant life. It may be easy in people's eyes, but it's hard to feel.
Let's look at some of the bad effects when it comes to buying the wrong car.
#1. It's hard to buy a house
When you already have a large commitment, it means you are facing difficulties in making a loan to buy a home. The bank also finds it difficult to approve the loan.
See for yourself from the experience of others who until now have regretted failing to get a home loan due to high car loans.
There is no doubt that cars are transportation that has become a necessity for everyone to facilitate movement from one destination to another.
But instead we also have public transport such as LRT, bus, monorail and so on. Or you can take e-hailing like Grab or taxi to your destination-at a lower cost.
After all, cars are assets that depreciate in value every year. Once we buy a car and get out of the car showroom, some are already down 10%. And he said every year the price of the cars we have will drop another 10%.
Are we willing to buy a car that is declining in value? While we have the opportunity to buy a house that will increase in value every year?
#2. No savings and investments
When car installments and other related costs have reached half of your monthly salary, can you still afford to make savings and investments? Wrong day of the month, the money goes out more than the money comes in, we have to go into debt to continue living.
Some had to reduce their quality of life such as tying their stomachs and some had to do 2-3 jobs to supplement their income.
On the other hand, if the car installment is lower, you have the opportunity to make savings and investments with a higher amount.
It is these savings and investments that can help us in the future. We don't know what will happen, that's why we have to prepare. As the saying goes, "prepare an umbrella before it rains".
The heart also becomes calmer, because you do not have to worry about the bad things that will happen to you or your family.
