lowest auto loan rate

[_Qwerty_]

this is for real estate.. for cars.. it's fixed.. if they give you the interest rate.. that will be the interest rate for the duration of the loan..

the 24.86% is the entire rate for 5 years.. so it's 4.97% per year...

You need to use a loan calculator. The interest amount is based on the principal which declines over time as you pay off your loan. Each monthly payment is allocated between interest and principal. The interest amount is not static because it is always based on the principal amount which is declining every time you make a monthly payment. Also, the 24.86% is an annual rate and not a one time rate.

[boytsiks]

this is for real estate.. for cars.. it's fixed.. if they give you the interest rate.. that will be the interest rate for the duration of the loan..

the 24.86% is the entire rate for 5 years.. so it's 4.97% per year...

This is what I know as well. Annual rate is for real estate.


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[slapz]

yup your (and _Qwerty_'s) computation is correct. so roughly around 125,295 ang total interest niya for 5 yrs.

in my case, since Jazz 1.5V is 808k, my DP is 242,400 (30%) and monthly is 13982.10 for 48 months. mga 105,540 ang total interest na babayaran for 4 years. mejo malaki nga lang ang total cash out dahil walang free insurance and chattel. pero more or less sa mas mataas na interest na may free na ganung items parang na-spread out lang sya sa monthly installment.

Free Insurance sa BPI, for 500K loan amount.

Dun sa ibang usapan:
Add-on Rate po ang binibigay ng banks. And it's not a simple divide it by number of years to get the annual rate, kasi kung monthly payments po yan, every month nababawasan ang principal.

So for a Loan of 500K, 36 months, Add-on Rate of 15%, ang Effective Annual rate po nyan is around 9.3%. Hindi po 5%.

Just saying lang po...

[Monty]

^Thanks for clarifying that the 24% is the total interest for 5 years. Based on that, both your computations are correct. The annual rate of interest is therefore around 8% for the car loan.

[Monty]

Free Insurance sa BPI, for 500K loan amount.

Dun sa ibang usapan:
Add-on Rate po ang binibigay ng banks. And it's not a simple divide it by number of years to get the annual rate, kasi kung monthly payments po yan, every month nababawasan ang principal. Just saying lang po.

I agree.

[DeathRow]

What's the general rule of thumb regarding monthly ammortization and net income again? Is it 30% or below of main + spouse/co-borrower?

Thanks

Any takers? :D

[sientobente]

Any takers? :D

what i saw from a bpi advertisement inside the bank was, your total monthly ammortization(includes house not just car) should not exceed 30% of your net pay monthly. and i believe they are referring to your own pay alone without the spouse yet.

[sientobente]

by the way, if you have a savings acount in the bank large enough to pay for the car that you would like to purchase, there is something they call back-to-back making your savings as a collateral. the rates are much much lower than a regular auto loan.

[Walter]

by the way, if you have a savings acount in the bank large enough to pay for the car that you would like to purchase, there is something they call back-to-back making your savings as a collateral. the rates are much much lower than a regular auto loan.

The funds in that account will be locked and you won't be able to use them for the duration of the loan.

[DeathRow]

Q: Just been approved for a P1.5M - 500k DP bank loan, what if I've change my mind and want to get a P1.7M vehicle with the same 500k DP - would I have to re-apply from scratch or can the bank provide a quick fix?