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  1. Join Date
    Oct 2011
    Posts
    293
    #1
    If your company will shoulder the interest of your auto loan, which way to go?

    A. Bank financing - lower rates, less freebies? (chattel, insurance additional expenses)
    B. In-house financing - can negotiate for more freebies? (free LTO, chattel and insurance)

    Let us know your thoughts on this guys.


  2. Join Date
    Oct 2002
    Posts
    17,340
    #2
    Best thing to do is to get computations for both and add it all up to find the best deal. The dealer also tries to give rates that are competitive with the bank AFAIK (unless you're going after a hot-selling unit).

  3. Join Date
    Sep 2005
    Posts
    15,326
    #3
    kung shoulder naman nang company yung interest.. eh di don na sa in-house para madaming freebies.. all-in pa. free lto, chattel, yung iba w/ free insurance na din.. so wala nang cash out..

  4. Join Date
    Oct 2002
    Posts
    2,075
    #4
    Better make sure of your benefits though. Some companies only recognizes the interest schedules from banks as your support paper for re-imbursing interest payments and they do not accredit in-house financing.

    If they do both, then choose the one that has more freebies.

  5. Join Date
    Oct 2011
    Posts
    293
    #5
    Thank you for the comments/suggestions.

    I don't know if what I'm thinking is right. The main reason we go to bank financing is for lower interest rates? But we'll need to pay chattel, insurance etc.

    So if we are going to throw the interest out of the equation (benefit), would In-house financing be considered the better deal after all with free insurance, chattel and can negotiate for more freebies?

  6. Join Date
    Oct 2006
    Posts
    261
    #6
    Can the chattel, insurance, etc. be included in the the total loan amount with the bank?

  7. Join Date
    Dec 2005
    Posts
    39,162
    #7
    Quote Originally Posted by loverlionus View Post
    Can the chattel, insurance, etc. be included in the the total loan amount with the bank?
    Normally, they're not, and are paid upfront.

    Of course, you can arrange to pay the insurance for example in 3 equal payments or so...

    15.7K:lalala:

  8. Join Date
    Oct 2002
    Posts
    40,038
    #8
    Ikaw ba makipag negotiate? Hinde ba company mo na bahala kung saan sila Mas makakamura?


    Sent from my iPad using Tapatalk HD

  9. Join Date
    Oct 2011
    Posts
    293
    #9
    Quote Originally Posted by shadow View Post
    Ikaw ba makipag negotiate? Hinde ba company mo na bahala kung saan sila Mas makakamura?


    Sent from my iPad using Tapatalk HD
    Ikaw makikipagnegotiate Sir. Pag may loan ka na, submit mo na lang mga necessary documents like amortization sched for the whole year.

  10. Join Date
    Aug 2011
    Posts
    171
    #10
    Be sure sir sa benefit ah... Yung company ng wife ko ganyan din. Company ang magbabayad ng interest. Pero they have recommended banks. Specific din sa branch and loan agent. If hindi dun kinuha, papasok sya sa personal loan... Ganun din pag in-house financing sa casa. Personal loan din.

    Pero kung sure ka naman na i-cover pa rin ng company kahit via in house financing ng car dealer. Dun ka na, kasi marami ka mahihingi freebies. I guess di talaga freebie kasi ang laki ng interest compared sa bank.

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If you have this company benefit, which way to go? Bank or In-house Financing?