You are getting that dream car! Just be sure to know these things before getting an Auto Loan.
Investing in aCar has always been a dream for everyone but can be too grand for some. These investments need a lot of learning but can guarantee you a life of ease in the future.
If you plan to get your first ever vehicle, may it be brand new or second (2nd) hand, you should know these things about Auto Loan:
Important Things to Know before getting Auto Loan:
Best Offer and Quotation
Make sure to visit the different car dealerships and don’t just focus on one (1) car dealer or brand for easy comparison. Different car dealership provides different pricing so be sure to collate all of their brochures and payment terms for you to choose the best offer that fits your budget. Choose a dealership that will give you additional benefits or freebies like Free Change Oil, Car Care Kit, or simple merchandise.
If you’re hesitant to visit the dealership physically and too shy to inquire about Auto Loan, just visit these websites, check the required down payment, monthly amortization & terms:
Note: Be sure to check other Car Dealerships too. Compare and review the best Auto Loan offer favorable for you!
Reasonable Interest Rate
Car dealerships have accredited or partner banks for your Auto Loan. It is best to check their interest rate per month and analyze which bank will be of great help in getting your dream car. One good piece of advice, choose a bank that you’ve trusted for so long or a bank that you have an account with. It’s easier for the bank to know your background and your financial capability as you are their bank consumer.
Check out these banks calculator and know their offers:
Extra Charges
In getting that dream car, down payment and monthly amortization are not just your priority. Be sure to save up for your car’s PMS or “Periodic Maintenance Service” to prolong the life of your vehicle. Car Insurance is also your top priority so be sure to have this agreement with your car dealer. For other taxes or additional charges, always ask for an Official Receipt so you can track down your expenses and save up for the next year’s payment or car service.
Your Budget
Make sure you have a stable job or own business that will help you settle for your monthly Auto Loan bill. Re-consider applying for an Auto Loan if you have existing debt, credit card balance, or no savings yet. Avoid getting in trouble in the near future!
Main Reason to Apply for Auto Loan
Be clear with your goal. Why are you applying for an Auto Loan? Are you tired of commuting and wanted to feel comfortable daily travel? Is your job or business stable? Can it pay for your monthly Auto Loan bills without breaking your piggy bank or withdrawing all of your savings from the bank?
How to Apply for Auto Loan?
Complete the pre-approval requirements or form from your chosen car dealership. If you are an OFW, Salary or Source of Income is insufficient, a Minor, a Foreign Resident in the PH or a Senior Citizen, you need a co-maker that stands as your partner in the financial agreement you will sign.
In the actual application or submission of your forms, make sure you have the following documents to avoid delays in your Auto Loan application:
- Two (2) Valid Government-issued IDs
- Proof of Billing (Electricity, Credit Card or Water Bill that has your current home address)
- Latest Bank Statement (if only asked or required by the bank)
- Certificate of Employment (with compensation details), ITR, Latest Pay Slip
- For Self-Employed or Business owner, provide Business Registration, Latest ITR w/ Audited Financial Statement
- For OFW (Overseas Filipino Worker), provide COE or POEA Contract, Proof of remittance to a beneficiary in the Philippines
After completing the requirements, be sure to ask your car agent if there’s a need to submit additional documents to guarantee your Auto Loan approval.
Note: Never miss a requirement!
A friendly reminder before signing your Auto Loan application:
Getting your dream car is never easy and can be very tricky. But with the right mindset and goal, you can easily get an Auto Loan approval from your chosen car dealership & bank! Just choose the best offer and you’ll drive that dream car in no time!
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