In Indonesia a car loan is an option to finance the purchase of a new or used vehicle. The Indonesian car buyer borrows money from a bank and pay back after a certain period of time which cannot exceed 5 years.
Indonesia instead of a car loan offers the possibility to purchase a vehicle by taking the advantage of a manufacturer’s zero interest financing offer which can be far better than the one offered by the banks. Indonesian car manufacturers are using zero interest loans to promote their own sales.
Another option to car loans in Indonesia is the possibility of leasing a vehicle for a limited time which is equivalent to renting a car for a period of a couple of years. This can be an advantage to business owner in terms of tax advantages and liquidity management.