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.

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

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

[BlueBimmer]

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.

[proxies]

someone posted this on shout box..

http://www.amafastcarloan.com

they have 0.58% monthly interest

haven't tried it myself...

[yebo]

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.

[surg]

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

[erickdpogi]

* Linkk

The application usually takes 1 hour, the approval at the fastest should be 3-4hours. Depends actually, on my exp., we have existing records on the bank with good ratings so when I applied for loan 2pm, the banker told me that i was approved 8pm.

For first timers like you sir, the application will take around 1-3 days normal on any bank.

As was explained previously, accomplishing all requirements properly will yield faster transactions. be sure to bring 2 valid IDs, CoE (if needed), ITR(if needed), passbooks of existing records or loans (if needed) and if you're the co-maker, the Special Power of Attorney, SPA and remmitance slips if the principal car loan maker is working oveseas (OFW).

Good Day again!

[tawengo]

as for my experience..
i inquired at the showroom 4pm.. SA told me to fill up PSbank carloan so that if ever we decide to buy the car na talaga, the papers would be ready.. so fill up nalang din ako. (i don't have any documents whatsoever, just the application form filled up),we left the showroom at 4:30. 5:30 pm i received a call from PSBank head office to check if the details i wrote were true.. 5mins after our conversation i received a text message from them telling me that my car loan application was approved!

i was so amazed on how fast they approved my loan without giving them any documents or whatever. i dont even have an account with them. and it's my first time ever to loan, no records in any bank, wala din ako kakilala sa bank na yun. i don't know why they approved my loan that fast..

but i loaned at epci.. hehe mas mura bigay nila interest rate eh. ok lang wait ng 1week..

[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?

[hominid]

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.

Ayus sana pero pamahal naman ng pamahal kotse yearly. And for sure newer models will be higher priced. Baka un interest na nabayad mo in say like 3 yrs equivalent na rin nun price hike nya in that period. Un car ko nga in a yr. tumaas na ng 20k, and Im sure sa ibang models mas mataas pa. 50k lahat magiging interest ko. So kung continuous un 20k increase per yr., nakatipid pa ko P10k in 3 yrs.

Pero best talaga ala utang.

[Linkk]

First of all, many thanks po to all of you who replied, at least now I have an idea how the whole thing works. Unang una ko sigurong aayusin mga requirements muna and talk to our bank. Eto po kase scenario ko, by September benta ko na car namin sa relative namin, tagal na kaseng inaawitan..We decided to get a new car valued around 900k, mag down ng 50%(450K) and the rest get a loan from our bank ( EPCIB) and thinking of paying it in 2 yrs.Ano pa ba mga extra costs aside from chattel mortgage, registration and insurance?

Sir tawengo pm naman po sa akin kung ano bigay na interest sayo para may idea ako.

[Linkk]

Still have few questions po.
1.What other fees that I need to pay aside from chattel mortgage, insurance and lto registration?
2.After submitting the requirements and have been approved, what’s next?
3.Is it me who will look for the dealer and get the car that I want or will the bank take care of everything?
4.How does the bank normally handle any freebies or discount from the dealer?
5What documents will I get from the dealer/bank eg. Photocopies or original copies of OR/CR, etc.
6.Will they deliver the car to my place or should I pick it up myself from the dealer?
7.Lastly if i finished paying my loan, do i need to pay anything else? will the bank change the owner of the car to my name?
Thanks

[devdevlin]

ako din may tanong, correct me if im wrong. if one chooses to have the car financed in a bank, the dealer considers the sale as "CASH" kasi the bank will issue a check with the full amount of the unit. tama ba analysis ko? if so, dapat mas malaki ang discounts at freebies kse cash buyer yun client compared to having it financed.

[erickdpogi]

Still have few questions po.
1.What other fees that I need to pay aside from chattel mortgage, insurance and lto registration?
2.After submitting the requirements and have been approved, what’s next?
3.Is it me who will look for the dealer and get the car that I want or will the bank take care of everything?
4.How does the bank normally handle any freebies or discount from the dealer?
5What documents will I get from the dealer/bank eg. Photocopies or original copies of OR/CR, etc.
6.Will they deliver the car to my place or should I pick it up myself from the dealer?
7.Lastly if i finished paying my loan, do i need to pay anything else? will the bank change the owner of the car to my name?
Thanks

answer to q.1 > it depends primarily on the dealer, some dealers require rust proofing, try inquiring about it sa mga dealers or so their quotations.

answer to q.2 > after being approved first time (the application form w/c most dealers asked you to accomplish if there is a sense of need), go to the bank that you got approved and asked the banker in charge of the auto loan to start processing the necessary documents. The 2nd part comes in as stated during the previous post. you must, again, supply the necessary documents needed since you're already applying the bank usually, they'll ask you, 2 valid IDs, current CoE, recent payslips (if employed), etc. etc. this is required. Pay the downpayment and others.

answer to q.3 > not necessarily but if you opted for a dealership that's near you why not? anyway, in case there is no available unit that you want, the bank will transact with different branches to search for an available one. giving you yet another option. Also, you ask the dealer to just process everything, just be ready with the required cash out.

answer to q.4 > usually its seperate. BDO had freebies when you got a deal with their autoloan. As for the dealer, In my exp., they gave me an umbrella, sun shade, seat cover, floor mats, EWD, Jack and tools and a special tshirt with a brochure that is only available if you purchase that unit, Lucky! . They don't cancel out each other.

answer to q.5 > Dealer : Vehicle's Sales Invoice (cust. copy), this is required for your car not get impounded . the rest is standard. The bank will give you your passbook (if auto debit) or atm for you to deposit your MA, the reciepts of the transactions too.

answer to q.6 > the main procedure is usually they deliver it to your home for confirmation, but you can/may also opt to recieve the car directly at the dealership's branch (that's what I did). Just bring the necessary documents:
Authorization letter (if its entitled to other family members), a valid ID from that member, 1-2 valid IDs of your own. Of course you have to sign the documents there yourself in the stead of the one entitled.

answer to q.7 > I dont think the bank will ask you to pay anything other than the option of paying up in advance.

[erickdpogi]

Still have few questions po.
1.What other fees that I need to pay aside from chattel mortgage, insurance and lto registration?
2.After submitting the requirements and have been approved, what’s next?
3.Is it me who will look for the dealer and get the car that I want or will the bank take care of everything?
4.How does the bank normally handle any freebies or discount from the dealer?
5What documents will I get from the dealer/bank eg. Photocopies or original copies of OR/CR, etc.
6.Will they deliver the car to my place or should I pick it up myself from the dealer?
7.Lastly if i finished paying my loan, do i need to pay anything else? will the bank change the owner of the car to my name?
Thanks

answer to q.1 > it depends primarily on the dealer, some dealers require rust proofing, try inquiring about it sa mga dealers or so their quotations.

answer to q.2 > after being approved first time (the application form w/c most dealers asked you to accomplish if there is a sense of need), go to the bank that you got approved and asked the banker in charge of the auto loan to start processing the necessary documents. The 2nd part comes in as stated during the previous post. you must, again, supply the necessary documents needed since you're already applying the bank usually, they'll ask you, 2 valid IDs, current CoE, recent payslips (if employed), etc. etc. this is required. Pay the downpayment and others.

answer to q.3 > not necessarily but if you opted for a dealership that's near you why not? anyway, in case there is no available unit that you want, the bank will transact with different branches to search for an available one. giving you yet another option. Also, you ask the dealer to just process everything, just be ready with the required cash out.

answer to q.4 > usually its seperate. BDO had freebies when you got a deal with their autoloan. As for the dealer, In my exp., they gave me an umbrella, sun shade, seat cover, floor mats, EWD, Jack and tools and a special tshirt with a brochure that is only available if you purchase that unit, Lucky! . They don't cancel out each other.

answer to q.5 > Dealer : Vehicle's Sales Invoice (cust. copy), this is required for your car not get impounded . the rest is standard. The bank will give you your passbook (if auto debit) or atm for you to deposit your MA, the reciepts of the transactions too.

answer to q.6 > the main procedure is usually they deliver it to your home for confirmation, but you can/may also opt to recieve the car directly at the dealership's branch (that's what I did). Just bring the necessary documents:
Authorization letter (if its entitled to other family members), a valid ID from that member, 1-2 valid IDs of your own. Of course you have to sign the documents there yourself in the stead of the one entitled.

answer to q.7 > I dont think the bank will ask you to pay anything other than the option of paying up in advance.

Hope this answer your questions!

Good Day!

[erickdpogi]

padelete po ng repost thanks