Need advice, 1st time car and it will be financed.

[gh0str1d3r]

Hi

I'm planning on buying my 1st car, it will be a new car. This is my first time going to finance a car, I was already approved by a bank for car loan. What I would like to know is the process. Yeah sure I can ask my SA about it but I also would want 2nd opinion from experts, to ask people here in this forum. Who has experience loaning a car recently.

What's the process? after getting approve? Also would like to know when on the process will give them my down payment? Should I give them the money, when the car is already there for me to pick it up. What to look on the contract before signing it?

I'm really a noob on this, really needs some experts advice. Money is Money, hard to earn it, even if the "all in promo" is that low.


Thanks in advance

[yobma]

If you paid a reservation fee you could request to pay your down payment together with your post dated cheques on the day they release your new car to you. Some would however need you to pay the advance payment first before they can start processing the release of your new car (usually takes about 2-3 days) this is true specially if your getting your vehicle feom a provincial dealer. Hope this helps

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[willyfernando]

If the bank approves your loan scout for the best dealer offer and work out the details of your choice like color, trims, discounts, etc. Soon as you have iron out the selection and ordering process, have your loan account officer talk with the dealer/seller of your final agreement and they shall finalize everything. From hereon you shall be given instructions by the bank to give them your agreed deposit amount, sign the appropriate loan agreement and issue the appropriate Post dated checks for your term payment. If the dealership is far from your bank branch just simply request the bank to assist you by assigning another branch nearest to the dealership and arrange for said DP and loan signing, etc. Proceed back to the dealership and present your accomplished bank requirements and work out the release of your unit.
Some tips on buying:
1. Do not be blinded by discounts and freebies. Most of the items they claim free are really standard items in a car purchase.
2. Find out w/c dealership is the best in terms of service record and customer satisfaction (TLC) before you give your business to anyone else. Work out the servicing agreement (PMS) schedule and find out the potential cost of your car's maintenance.
3. Your bank requires for you to have an insurance so it is better to have this packaged with your loan to get better rates and term payments as well as the backing of your bank's insurance brokerage in the event of a claim.
4. If you can manage to squeeze your loan payments from 24-36 months that would be the most practical borrowing term.
5. Do not be disappointed by problems like no stock of your choice of color or trim. Ask the dealer if they can get you your order from another dealership rather than switch to a different car brand.
6. Do not settle for a single dealership choice when working out your purchase. At least try to talk with 2 or 3 dealerships and assert your discount and freebies based on the competing offer of each dealership. This will improve your package offer.
7. Walk into the dealership with confidence and get the best offer you can. This is your first car so enjoy the moment and do not be pressured by the SA into carelessly buying something you may regret afterwards. Get the car that you really want.

[yebo]

^^ looks like "approved by a bank" here means in-house ang financing nya, not straight bank loan. sad to say that if you already applied for those "all-in" low down payment in-house bank loans that you can no longer apply for a direct bank loan for at least 3 months. sabagay if what you are after is low down payment then you have no other course of action than to go "in-house". sa direct bank financing kasi the dp is the full 20% plus chattel mortgage fee and insurance, which can seem costly but actually cheaper in the long run.

straight bank financing involves going to the bank first, get pre-approved for a loan then go to a dealership. mas mataas ang dp pero mas mababa ang interest rates.

[_Qwerty_]

if comprehensive insurance is not free or if you wished to get it outside, make sure it is available on the day you will get the unit.

if you get the loan from a bank, you will need the document from bank, down payment, chattel mortgage if not free, comprehensive insurance.

[Juan Martinez]

If the bank approves your loan scout for the best dealer offer and work out the details of your choice like color, trims, discounts, etc. Soon as you have iron out the selection and ordering process, have your loan account officer talk with the dealer/seller of your final agreement and they shall finalize everything. From hereon you shall be given instructions by the bank to give them your agreed deposit amount, sign the appropriate loan agreement and issue the appropriate Post dated checks for your term payment. If the dealership is far from your bank branch just simply request the bank to assist you by assigning another branch nearest to the dealership and arrange for said DP and loan signing, etc. Proceed back to the dealership and present your accomplished bank requirements and work out the release of your unit.
Some tips on buying:
1. Do not be blinded by discounts and freebies. Most of the items they claim free are really standard items in a car purchase.
2. Find out w/c dealership is the best in terms of service record and customer satisfaction (TLC) before you give your business to anyone else. Work out the servicing agreement (PMS) schedule and find out the potential cost of your car's maintenance.
3. Your bank requires for you to have an insurance so it is better to have this packaged with your loan to get better rates and term payments as well as the backing of your bank's insurance brokerage in the event of a claim.
4. If you can manage to squeeze your loan payments from 24-36 months that would be the most practical borrowing term.
5. Do not be disappointed by problems like no stock of your choice of color or trim. Ask the dealer if they can get you your order from another dealership rather than switch to a different car brand.
6. Do not settle for a single dealership choice when working out your purchase. At least try to talk with 2 or 3 dealerships and assert your discount and freebies based on the competing offer of each dealership. This will improve your package offer.
7. Walk into the dealership with confidence and get the best offer you can. This is your first car so enjoy the moment and do not be pressured by the SA into carelessly buying something you may regret afterwards. Get the car that you really want.

very sound advice

[gh0str1d3r]

Sorry forgot to mention, in house financing po from the dealer. Can't afford full 20% down. Is "in-house" a bad idea? I know it's a little bit higher monthly than through bank. I can also handle the monthly of in house but for 5years. I badly need a car. Is there other bad thing about "in-house" that dealer is not mentioning? It's there hidden charges that will surprise me on the monthly payments through inn house?

[playplugg]

Sorry forgot to mention, in house financing po from the dealer. Can't afford full 20% down. Is "in-house" a bad idea? I know it's a little bit higher monthly than through bank. I can also handle the monthly of in house but for 5years. I badly need a car. Is there other bad thing about "in-house" that dealer is not mentioning? It's there hidden charges that will surprise me on the monthly payments through inn house?

Sir gh0str1d3r ,

In-house, mataas ang interest, sa Bank, mas mababa ang interest rate, sasakyan man or property po,

kung yung sales agent nyo po ay walang paki-alam (isip lang po ay maka-quota) forget about it..

kung meron naman po kayong account sa certain bank, pwede nyo naman po sila lapitan for application ng loan, (mas expertise po sila lalo sa financial management)...to seek advice and what to do po, para iwas repossessed.....

saan nyo ba gagamitin ang sasakyan?! "wants?! po ba or needs?!"

[Lew_Alcindor]

Sorry forgot to mention, in house financing po from the dealer. Can't afford full 20% down. Is "in-house" a bad idea? I know it's a little bit higher monthly than through bank. I can also handle the monthly of in house but for 5years. I badly need a car. Is there other bad thing about "in-house" that dealer is not mentioning? It's there hidden charges that will surprise me on the monthly payments through inn house?

Sorry if my question offends you.

How badly do you need a car, and a brand new one?

Low DP is tempting but my guess is that most repossessed cars were acquired through "Low DP" promos becaue=se these buyers are not aware of the long term financial implications.

[_Qwerty_]

meron na ding mga in house na mababa interest.. example yung nakita kong Kia Carens sa isang mall.. this is from KIA caloocan yata..

SRP = 1.275M
ALL in DP - 30T
Monthly for 60 months = 26T
Total Payment = 1.59M

Interest = 315T or 24.7% or 4.94% per annum na lang din

[Lew_Alcindor]

meron na ding mga in house na mababa interest.. example yung nakita kong Kia Carens sa isang mall.. this is from KIA caloocan yata..

SRP = 1.275M
ALL in DP - 30T
Monthly for 60 months = 26T
Total Payment = 1.59M

Interest = 315T or 24.7% or 4.94% per annum na lang din

Totooa ba ito? Mas mataas pa interest kesa sa car loan namin sa banko hehehe

[khalee]

Low DP is tempting but my guess is that most repossessed cars were acquired through "Low DP" promos becaue=se these buyers are not aware of the long term financial implications.

Agree with this. You also have to consider, gas, parking, PMS etc when owning car. So weigh what works for you.

I just got my car a week ago through direct bank financing. High DP works better for me than paying a high monthly amortization as I also have other monthly dues.

If you're going tru in house, try haggling with your dealer. Tell them the banks offer (you can use banks auto loan calculator to get an idea how much it would cost) then ask your dealer if they can offer you the same or somewhat close to it.

Goodluck on your car hunting sir!

[Synth007]

I guess he badly needed it as mentioned above. Most of the steps are already mentioned above. Though as we all suggest... and as much as possible... dont go inhouse since the addon interest is way up there. Just save until you can afford atleast 20%down. Anyway some dealers do provide competative financing if you know how to haggle. Best way is to give them a qoutation from the bank and let your agent start from there. When it comes to hidden charges, usually the agreed monthly would be charge unless theres something about the contract that says so... read carefully the contract! There you go... hope you could buy your first bnew car without hassle

[dr. d]

i ask myself:
what is the cash price of the car?
what is the monthly, and what does the total amount add up to, after everything has been completely paid for? am i really willing to pay that much?

can't i use the money to buy something more permanent, like a house, instead?
really, i'd buy a house first before i buy a baby that will never grow up, despite its increasing appetite..
(if TS already has a house, TS will disregard the last two statements.)

[willyfernando]

TS says he badly needs a car however there are some red signs I worry about. If he couldn't afford to raise an acceptable down payment (20 -30%) then managing an agonizing 5 year term loan will pain him. Just thinking, if the in-house approval was given a nod then why not explore the bank loan angle to save some hard earned money? Though banks are more conservative they can give you an idea of how financially sound you are in taking a loan. This way you can really be more sensible with what you buy for your first car, budget and term wise. IMHO, in-house deals are a pain and often times sales quota motivated but in the end it's like you paid almost twice for the car especially for those longer than 3 years term.

[shemcristobal]

Have everything documented in a quote from dealer, including all the freebies for the car you want.

Then apply for bank approval. If you talk directly to the bank you'll get to negotiate for lower down payment and monthly amortization. {In-house financing is a sure way to go (just like others said) but costs you more. Well weigh in if you can suck up the costs versus the relative difficulty of pushing a bank approve a car loan plus finding that dealer to agree that your not in-house financing it.}

Once you get Bank approval, negotiate with the dealer. The dealer will follow the terms and conditions of the bank anyhow.

Once dealer agrees, pay the reservation fee (deductible from your downpayment) and when unit is available for release, dealer will instruct you to process the bank documents, prepare the manager's check (sum of all bank fees, remaining downpayment, LTO) payable to the dealer, coordinate bank P.O. submission to dealer, then pick up of your car follows.

For an 875K car, you would likely shell out around 160K; and a monthly ammortization of close to 16K for 60 months (will be deducted from your bank account - no more cheques to issue).

Now it really boils down how much you can cash out upfront.








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[gh0str1d3r]

Thanks for the replies Very informative.

I'll try out the banks for lower interest. But if the DP is still that high compared to the "all-in" promos of dealer, I'll have to settle with the dealers and find the lowest monlthy or interest. I really need a car for daily use, home to office and week end rides

Which bank offers the best car loan? and also which approve fast?

Is there better promos when it comes to December (Christmas), dealers have Christmas promos right? should I wait for that, what will they offer. Currently still using my sister car temporarily.

[shemcristobal]

Which bank offers the best car loan? and also which approve fast?

Is there better promos when it comes to December (Christmas), dealers have Christmas promos right? should I wait for that, what will they offer. Currently still using my sister car temporarily.

Good question and to answer that you have best chance with your own bank right now. I assume your salary is creditted to some bank and that bank is the best candidate as they already have record of your income history.

If you have credit cards, it is best to have a good credit standing with them.

Promos are good but will delay you or might not include the car of your interest.



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[dr. d]

as mentioned earlier, if TS has difficulty coming up with the down payment, it may be an indication that TS won't be able to afford the monthlies and maintenance later..
i have seen car owners whose desperation at acquiring a car, was overshadowed only by their desperation at getting rid of the same car, after only a few months..

if TS is amenable, settle for a cheaper, pre-owned car. something you won't have to pay for every month for more than 6 months.
marami diyang ok na used car. konting tiyaga at dasal lang.. used vios, sentra, even corolla..

and oh! the oxymoron: when in a rush to buy a car, any car, don't rush. the next car might just turn out to be the better buy.

is it possible that TS has an upcoming activity that needs a car? if so, my suggestion is, rent one. after the activity, just return the car and he'll have no problems at maintaining it.

[larry0609]

Toyota Pasig branch is now having their Christmas promo. You might want to check their website to find out more about it.


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