Navigating the Complexities: Ensuring Financial Stability and Resale Value in Vehicle Financing


In the pursuit of financing vehicles through installment plans, consumers are urged to consider crucial factors to ensure financial stability. Dewa Made Susila, President Director of PT Adira Dinamika Multi Finance Tbk (Adira Finance), emphasized the significance of maintaining a balance between income and installment payments.

Speaking at the Performance Presentation of Adira Finance for 2023 on Thursday (February 16, 2024), Susila highlighted the necessity for individuals to carefully assess their income-to-installment ratio. "I advise maintaining a healthy balance between income and installments. It's essential not to stretch oneself too thin, as unexpected expenses are inevitable in life," he remarked.

Susila further indicated that most multifinance companies typically offer financing with installments amounting to around 30 percent of one's income. Additionally, he noted that owning a vehicle often entails planning for future resale, a consideration that influences many Indonesians when opting for vehicle financing.

"In my experience, what's crucial is calculating the total ownership cost," Susila explained. This cost encompasses not only the installment payments but also other expenses such as fuel, maintenance, taxes, and any additional costs incurred until the eventual resale of the vehicle.

To illustrate, Susila presented a scenario where two vehicles are sold after three years of use. Despite having similar installment plans initially, the total ownership cost of one vehicle could be three times higher than the other, influenced by the resale value of each vehicle. While one type of vehicle may depreciate by only 10 percent from its purchase price, others may depreciate by 30-60 percent.

"Even if the installments and initial prices of Item A and Item B are the same, their total costs over three years can differ significantly," he emphasized. Therefore, Susila encouraged prospective customers to choose vehicles with relatively stable resale values.

Highlighting the importance of understanding total ownership costs, Susila noted that many individuals remain unaware of this aspect. In line with this commitment to consumer education, Adira Finance, together with the MUFG Group ecosystem in Indonesia, will support the Indonesia International Motor Show (IIMS) 2024 from February 15 to 25, 2024, at JIExpo Kemayoran, Jakarta.

Swandajani Gunadi, Director of Marketing at Adira Finance, expressed their enthusiasm for the event, stating that Adira Finance will have a more significant presence than ever before. Gunadi revealed plans for five large booths scattered throughout the venue, with separate booths for Adira Finance's e-commerce platforms, Momotor, and Momobil.

At IIMS 2024, Adira Finance aims for a financing growth rate ranging from 30 to 40 percent, reflecting their commitment to supporting consumers in making informed decisions regarding vehicle ownership and financing.

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