How does 2nd hand car financing work?

[Pikit]

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!

Ayos to. At least may idea na sa process. Salamat!

Sa pagbabasa pa lang, parang kumplikado na. Tapos dapat willing din yung seller sa mga abala.

[i.am.aids]

Also consider yung personal loan. Inquire about it too. It's about the same rate (January 2016, 25-30%) as 2nd-hand car loan. If they are of the same rate, personal loan is preferred as this is collateral-free.

[Pikit]

Also consider yung personal loan. Inquire about it too. It's about the same rate (January 2016, 25-30%) as 2nd-hand car loan. If they are of the same rate, personal loan is preferred as this is collateral-free.

Pwede rin i-consider to para hiwalay na ang usapan sa lender at sa seller. Pero depende pa rin sa terms.