How does 2nd hand car financing work?

**Pikit** · September 19th, 2016 02:49 PM

I'm looking into buying a 2nd hand car worth around 300k-350k and considering taking a loan from a bank or private lender to cover the balance after I pay 20%-30% downpayment. The problem is that I absolutely have no idea about this kind of transaction. Madali sana kung cash kasi kaliwaan lang kaso malamang hindi. So I have a few questions that I will very much appreciate if somebody can shed some light to:

a. what's the best place to get a loan?
b. what do i need to prepare? when do I need it?
c. would there be additional expenses except for the DP?
d. what's the participation of the seller
e. dealer vs private seller?

Salamat!

**abongon65** · September 19th, 2016 03:05 PM

Asialink Finance Corporation

Asialink is famous in financing 2nd hand cars, medyo may kataasan lang interest nila (for me). Try to inquire and find it out.

**seymorebutts** · September 19th, 2016 03:33 PM

Originally Posted by abongon65

Asialink Finance Corporation

Asialink is famous in financing 2nd hand cars, medyo may kataasan lang interest nila (for me). Try to inquire and find it out.

pagkakaalam ko pag 2nd hand cars, mas mataas talaga ang interest.

TS why not buy a brand new car, you said you can pay 30% of 300k - 350k, pwedeng pwede na yan pang down sa brand new

**Pikit** · September 19th, 2016 03:52 PM

Originally Posted by seymorebutts

TS why not buy a brand new car, you said you can pay 30% of 300k - 350k, pwedeng pwede na yan pang down sa brand new

Pass sa brand new. Kahit may pang down ayaw kong bunuin yung balanse ng limang taon. baka after two years ako na nagbebenta -- *Assume Balance*

Nagbabayad pa ko ng bahay at motor. Sakto na ang 2nd hand lalo at first car ito saka na lang mag upgrade pag may experience na.

**dreamur** · September 19th, 2016 04:03 PM

Originally Posted by Pikit

Pass sa brand new. Kahit may pang down ayaw kong bunuin yung balanse ng limang taon. baka after two years ako na nagbebenta -- *Assume Balance*

Nagbabayad pa ko ng bahay at motor. Sakto na ang 2nd hand lalo at first car ito saka na lang mag upgrade pag may experience na.

Good thinking!

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**i.am.aids** · September 19th, 2016 04:04 PM

Originally Posted by Pikit

I'm looking into buying a 2nd hand car worth around 300k-350k and considering taking a loan from a bank or private lender to cover the balance after I pay 20%-30% downpayment. The problem is that I absolutely have no idea about this kind of transaction. Madali sana kung cash kasi kaliwaan lang kaso malamang hindi. So I have a few questions that I will very much appreciate if somebody can shed some light to:

a. what's the best place to get a loan?
b. what do i need to prepare? when do I need it?
c. would there be additional expenses except for the DP?
d. what's the participation of the seller
e. dealer vs private seller?

Salamat!

I inquired about this with BPI. The main advantage is that they will take care of the paper work and the vehicle would be subjected to their inspection. The main disadvantage is the loan rate, I was not able to find a car cheap enough to be of considerable difference with a new one.

Have a quote requested with your bank. They'll provide you with details.

Edit:
Better to just save up and buy cash. Also consider other loan options. I guess personal loan is of the same rate as 2nd hand car loan without the car serving as collateral.

**papi smith** · September 19th, 2016 04:13 PM

BPI Auto Loans

**1D4LV** · September 19th, 2016 04:15 PM

Originally Posted by i.am.aids

I inquired about this with BPI. The main advantage is that they will take care of the paper work and the vehicle would be subjected to their inspection. The main disadvantage is the loan rate, I was not able to find a car cheap enough to be of considerable difference with a new one.

Have a quote requested with your bank. They'll provide you with details.

Edit:
Better to just save up and buy cash. Also consider other loan options. I guess personal loan is of the same rate as 2nd hand car loan without the car serving as collateral.

however, personal loan interest rates are higher than carloans because of the lack of collateral. so it would be a very expensive loan.

interest rates for second hand cars are really higher than brand new cars because of the limited and short pay period.

and yes, i agree that it would be better to save up and buy cash....
or if you company has an internal car loan program and benefits, dun ka kumuha.

**Pikit** · September 19th, 2016 04:42 PM

Originally Posted by i.am.aids

I inquired about this with BPI. The main advantage is that they will take care of the paper work and the vehicle would be subjected to their inspection. The main disadvantage is the loan rate, I was not able to find a car cheap enough to be of considerable difference with a new one.

Have a quote requested with your bank. They'll provide you with details.

Edit:
Better to just save up and buy cash. Also consider other loan options. I guess personal loan is of the same rate as 2nd hand car loan without the car serving as collateral.

I submitted an online loan application to BDO kasi dun ang account ko but still yet to hear from them. Di ko naman mapasyalan yung branch dahil may pasok ako ng weekdays. Nag submit na rin ako sa mga private lenders, gusto lang kasi makita yung approx na monthly ammortization sa 24-36 months na loan para makatulong sa pag decide.

Di na kasi kaya mag-ipon pambili ng cash. My mom is coming home this year to recover from too much chemo kaya kailangan ng sasakyan pang service at pang gala out of town.

**i.am.aids** · September 19th, 2016 04:54 PM

Talk to the manager, it will be faster. Here's what they sent me, this is around January this year.

Second Hand Process:

1) Application for approval . Year model of the unit must not exceed 5 years and LTO OR/CR is not registered at LTO Taguig which does not allow Car History Verification making car financing not acceptable.

2) Once application has been approved, you can have the unit appraised here at the Head Office from 9:00 to 11:00am and 2:00 to 4:00pm only.
Please bring the original RC/OR and P1,000.00 for the appraisal and car history fee
Appraisal results out in 2 days
Initial car history 3-5 days*prior to appraisal of the unit

IMPORTANT NOTE: RC/OR should be FREE from any encumbrance and must be initially registered within LTO Metro Manila EXCEPT LTO Taguig prior to appraisal request.

3) Loan Documents for signing will be prepared once there's an appraisal and car history report. Approved Loan Amount will be based on the appraised value of the unit.

4) After you have signed on loan documents, it will be forwarded to BFB Head Office together with the payment for CHATTEL and One Month Advance (OMA) if you decided to avail OMA Rate and requirements required by credit such as 2 valid gov't issued ids of subject/spouse or co-maker, cedula, latest ITR, Completely filled out BFB Autoloans Application Form, Automatic Debit Authorization (ADA), Comprehensive Insurance policy under the name of BUYER with Mortgagee and Non-Cancellation Clause in favor of BPI Family Savings Bank, Inc.

- Down Payment ( which is the difference from the loan amount and selling price) should be payable to your seller
- Chattel Fees and OMA is payable to the bank

5) Bank Guaranty will be prepared after the the signed documents and requirements have been received.

Requirements to seller/clients indicated on Bank Guaranty Letter

- Clear Photocopy of Cancellation of Mortgage (If previously closed loan)

- Original LTO Certificate of Registration and Official Receipt under the name of (BUYER) registered within LTO Metro Manila with plate number and LTO sticker number

- Clear and complete stencils of the motor and serial numbers on :
LTO blue form ( 2 sets )
Ordinary/Onion paper ( 3 sets ) *avoid putting scotch tape as this is improvised stenciling, if inevitable then secure Certification of Improvised Stencils from LTO

- Original deed of sale between seller to buyer with printed name and signature of 2 witnesses.

- Insurance Policy, Inception date must be on or before notarial date of the Deed of Sale. (make sure to instruct your Insurance underwriter to endorse "in favor of BPI Family Savings Bank, Inc.")

- 2 valid gov't issued I.D.'s of Seller (not expired)

Take Note: 1. Issuance & preparation of Bank Guaranty Letter to seller only after subject/borrower has signed and submitted requirements to bank.
2. Disbursement of Proceeds to seller Only when all requirements are complied with and acceptable results from Final/Post Car
History Report from LTO, which will be stated as well on the Bank Guaranty Letter issued to the seller after you have signed loan
documents.

Indicative quotations :

Loan Amount of P250,000 payable in 5 years - monthly is P5,933.00
Loan Amount of P400,000 payable in 5 years - monthyl is P9,493.00

Please feel free to call or email us for any concern.

Thank you and Happy New Year!