car loan

[Linkk]

hi, first time ko po mag car loan sa banko and have totally no idea how it works, please help me to understand the step by step procedure, requirements and how long the is the whole process? anything you could tell me about the in and outs, dos or donts ay malaking tulong.

[yebo]

first, do have all your papers ready:
- if employed, employment certificate with your position, salary and length of service clearly stated
- if you are in business, business registration and DTI papers plus income statements for the last 3 years.
- income tax returns for the last 2 years (some require ITR for last 3 years)
- bank account records (they want to see that you have extra income that you put in the bank regularly, otherwise then you can't be able to make the monthly payments)
- current residence certificate (needed for signing the loan papers)
- checking account (they will ask you to issue X amount of checks corresponding to the lenght of repayment).
- if you think that your income is just enough to pay the loan, then be prepared also to have a "co-maker" ready to sign with you. most banks will also require this especially if you don't have any credit history.

once you have all those then go to the dealer and apply for the loan. most will have the approval ready within the day, providing your supporting papers are complete.

in addition to the cost of the down payment, you will also be required to pay certain fees like chattel mortgage, insurance, registration, etcetera. in some instances you can request for these fees to be added to your monthly amortization cost should you prefer to do so.

[tawengo]

canvass ka muna sa mga banks how much interest rates nila. a 1% difference is already big.

also, if you have friends working in the bank, they can be a big help.. ask for lower interest rates-the bank can give you up to 5% lower than their published rate (depende if me kakilala ka sa bank).

ask also if they (bank) have car loan promos-laking discount or freebies din makukuha mo jan.

[erickdpogi]

* Linkk

step 1: Consider the amount of DP you can afford first, usually dealerships have 15% low dp. The bank though has usually 20% DP of the actual unit.

step 2: Know your bank.

It helps going to the banks first before going for a quatation from your friendly agents from the dealer of the car you want to purchase.

I suggest go to PSBank and Banco de Oro. the rates of BDO are fabolous specially if you're on a tight budget. When i went to SM Southmall BDO branch, the plan was flexible up to 72 months (6 years) with 7.832% interest per annum plus a bonus gift check for gas or an iPOD shuffle for higher value purchases, i think the offer is until june 30, 2007 only. As for PSBank, the interest rate per annum is 7.074% for 60 months (5 years) as computed by our friendly banker here in alabang. Also try East-West Bank, i've heard they have also flexible terms.

step 3: Know the requirements.

As was stated during the previous posts here, know them very well.

step 4: Learn on how to have big discounts.

Usually, going to the dealerships for the quotation and application filed by your agents there will be costly. Why? bankers refer to it as Three Party System. The dealerships earn from you from their high quotations say for example the all important "CHATTEL MORTGAGE". As for own experience, from the cashout presented to me by the dealer, i saved 9,000 php when i consider that my CM be paid to the bank rather than the dealership itself. Also, when presented with the Insurance, ask for the bank to give you an alternative. With this, you can also save at least 4,000 php. The only thing you need to pay the dealer is the LTO registration (3 years standard) and optional ammenities such as Rustproofing.

step 5: The waiting begins.

After the Purchase Order (PO) is faxed to the dealer after all the requirements have been accomplished, be patient. Usually the unit (locally made or CBUs) are delivered at least one day at the fastest and 2 weeks at the least depending on the availability and the que.

Good Day!

[erickdpogi]

Here's also a formula I made in computing your monthly ammortizatio(MA):

Cost of Vehicle : A
DP : B
Interest Rate : C but for computation purposes, lets try 1.C, e.g., 1.47 if your IR is 47%
months to pay : D

[( A - B ) * 1.C] / D = Monthly Ammortization.

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The General Rule in Car Loans is, as much as possible to minimize the MA, either pay a bigger DP say, 30-50% (if you can afford), or go for the longer term payment schemes such as 48-60 months. It is usually seldom that you'll encounter 72 months since this scheme is too long.

Also be ready for yearly adjustments.

Hope this helps you.

[meldy12]

better to get a car loan from the bank rather from the car dealer. as what the previous tsikoteers advised, ask around. its a big difference pag may kakilala ka sa bank.
good luck, happy hunting

[hominid]

Also be ready for yearly adjustments.

Hindi ko alam ito ah. Ganito ba sa PSBank? Well, naka post dated na un payments ko eh. Mababago pa ba nila un?

[jul08]

Hi! Wats d best bank to loan?

[eph11]

Hi! Wats d best bank to loan?

try mo sa metrobank, so far sya ang may pinakamababang rate ngayon dahil sa promo nila.

[jul08]

try mo sa metrobank, so far sya ang may pinakamababang rate ngayon dahil sa promo nila.

Thanks!any ideas on what rates kya cla for 5yrs?

[eph11]

Thanks!any ideas on what rates kya cla for 5yrs?

check mo dito bro. Metrobank
nagsisi nga ko kasi nakakuha na ako sa ibang bank nung nalaman ko yung promo eh.

[jul08]

check mo dito bro. Metrobank
nagsisi nga ko kasi nakakuha na ako sa ibang bank nung nalaman ko yung promo eh.

Thanks buddy! Anung bank b nkuha m if u dnt mind? Hehe

[cal0i]

Hi Guys,

I have a question, medyo nakakalito lang kasi yung inhouse financing ng mga auto dealers

when you say inhouse kasi, diba dapat yung dealer magpapa-utang? bakit idadaan din nila sa bangko? and would that mean different rates? so why not go directly to the bank? tama ba ako?

Also, i tried visiting a hyundai car dealer BDO last time. I requested for a computation sa hyundai salesman, after getting the quote, I went to BDO and requested one as well for comparison. Since mas mababa offer ni BDO, i txted the salesman saying that I will use the BDO autoload instead, he replied requesting me to present him BDO's computation and tatapatan daw nya.

Is that how inhouse financing really works? and if tapatan nya talaga yung quote ni BDO, ok na ba if dun ako sa dealer considering the amount of freebies na makukuha ko??

thanks in advance guys!

[rockiee_s]

oo ganyan nga yan.

pag sinabing "in house", ibig sabihin lang, ang dealership ang maglalakad ng mga papers mo with the bank. pero bank pa rin ang magpapautang sa yo.

when i buying my vehicle, i did the whole exercise of comparing all the quotations given by the dealers and the banks. in the end, the bank rate is much lower than any dealer's rate.

sasabihin lang sa yo nya na tatapatan, pero di naman nila talaga kaya kasi wala na silang kikitain.

[fjoseph]

oo ganyan nga yan.

pag sinabing "in house", ibig sabihin lang, ang dealership ang maglalakad ng mga papers mo with the bank. pero bank pa rin ang magpapautang sa yo.

when i buying my vehicle, i did the whole exercise of comparing all the quotations given by the dealers and the banks. in the end, the bank rate is much lower than any dealer's rate.

sasabihin lang sa yo nya na tatapatan, pero di naman nila talaga kaya kasi wala na silang kikitain.

Which kung compute niyo, ang laki ng tubo nila. I went din po sa isang malaking branch ng KIA, which sabi ng SA, padadanin din pala nila sa bangko. I'm planning to buy this new 2012 Rio Sedan 1.2. Gulo?!!!haha

[luchi_bie]

Sirs,

Baka me idea kayo ng interest rates for pre-owned cars?

Thanks in advance.

[fourtheboys96]

kung tatapatan lang nung salesman, BDO ka na.

bakit ka lilipat kung wala naman improvement dun sa best offer na hawak mo na.

[popoy78]

tanung lang po, after how many months pwede mag apply ulit ng car loan? na decline na po kasi ako ng bank na nag approve sa akin last year. malamang dahil sa lumipat ako ng company last nov and di pa ako regular sa bago kong employer. may pag-asa pa ba ako maapprove? salamat sa makakasagot

[jul08]

^thanks jun! Btw possible ba maapprove kung may comaker ako? Planning to buy an hyundai accent or toyota avanza *20% dp..

[yamyam]

Got my auto loan approved from Unionbank. I was approved the price for a car without deducting the discount yet. Now Ford is offering me a 30k discount. If I just apply the whole 30k discount to include accessories for the car, di ba magkakaproblema yung loan ko? TIA peeps.