Jakarta, Armfalcon.com – Ramadhan may be the moment when car manufacturers and multi-finance companies hold promos ahead of Idul Fitri.
It is undeniable that this moment is often a moment that cannot be missed, especially for those who want to go home with a new car.
The THR is down and payday is not long in coming, maybe that is the justification why someone dares to dig deep into their pockets to buy a new car.
Not to mention, there are discount offers of up to tens of millions of rupiah and a down payment (DP) of 5% of the total price of the car, as well as low interest payments, of course, so that someone can have their dream car in the blink of an eye.
It’s not wrong to buy a car at this time, but know that not everyone is financially “fit” to buy a new car at this time.
For some people, buying a car during Ramadan, especially by credit, can actually make their finances even worse in the future.
Want to know, what are the criteria for people who are not eligible to buy a car in the month of Ramadan? Here’s the review.
Already have a lot of debt repayments
You may have ongoing mortgage installments, credit card installments, or other installments. It could be, there is no room for new car loans.
As is known, the maximum debt repayments that can still be considered ideal is 30% of your monthly income.
When the amount of your debt repayments is close to 30% of income, it’s better not to buy a new car with a credit facility.
The value of unpaid debts already exceeds ½ of assets
Your debt repayments may be ideal, but the total principal of your ongoing debt has already exceeded 50% of your total asset value.
Instead of spending big money to buy a new car, it’s better to use THR to reduce the principal of your already too large debt.
A car is just a tertiary need, paying off debt is a mandatory expense that you have to do.
Don’t have an emergency fund
A flat tire in the middle of the road, and a part that suddenly breaks down or needs to be replaced are risks of car ownership that you should anticipate.
If you don’t even have an emergency fund, owning a car can drain your savings even more.
It’s not wise to let your finances fall apart just because you’ve purchased an expensive asset that continues to depreciate in value.
Not disciplined in managing finances
If in just a month you are still having trouble saving, then know that a car requires a lot of costs for operations, routine maintenance, and annual taxes.
Incompetence in managing finances, could force you to use emergency fund savings for things like this.
Of course, you have special savings for things related to your car.