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  1. Join Date
    Oct 2002
    Posts
    232
    #1
    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.

  2. Join Date
    Oct 2002
    Posts
    10,820
    #2
    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.

  3. Join Date
    Apr 2007
    Posts
    59
    #3
    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.

  4. Join Date
    Jul 2006
    Posts
    234
    #4
    * 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!

  5. Join Date
    Jul 2006
    Posts
    234
    #5
    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.

    ----------------------------------

    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.

  6. Join Date
    Jan 2007
    Posts
    251
    #6
    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

  7. Join Date
    Dec 2003
    Posts
    11,317
    #7
    IMO, mas okay kung ipunin mo nalang muna pera mo, then after 2-3yrs, buy the car you want in CASH. laki rin matitipid mo sa interests and you can haggle for discounts pa. the best dyan wala kang poproblemahing monthly payments.

  8. Join Date
    Jun 2007
    Posts
    166
    #8
    someone posted this on shout box..

    http://www.amafastcarloan.com

    they have 0.58% monthly interest

    haven't tried it myself...

  9. Join Date
    Oct 2002
    Posts
    10,820
    #9
    Quote Originally Posted by proxies View Post
    someone posted this on shout box..

    http://www.amafastcarloan.com

    they have 0.58% monthly interest
    i think the thread starter was asking about getting a bank loan to purchase a car, not to use his car as collateral to get a loan.

  10. Join Date
    Mar 2007
    Posts
    239
    #10
    BDO offer re-financing. It works this way: you pay the car in cash then apply to BDO for re-financing. You save a lot because there's no more dealer incentive which usually amount to 1-2% of the car price

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