(Second Hand Car)
Auto loan is one of the most sought after financial products in the market right now. Transportation has grown to be more of a necessity rather than a luxury in the Philippines mainly due to substandard transportation system and the heavy traffic around the metro. Whether it's for a used or brand new car, auto loan gives the opportunity for Filipino families, especially the growing middle class, the chance to purchase their own car.
iMoney helps you choose which auto loan is right for you! There are two ways to avail for auto loans with major banks. One is the traditional way where the bank has an inventory of cars (usually provided by affiliates) that the client can choose from. The other method is for the client to pick their car of choice (usually for second hand cars), and the bank provides for a used car loan.
There is no need for consumers to compute for your loan amortization schedule since iMoney has done the job for you. A built in car loan calculator is available for everyone to use and it's for free!
Simply key in the information essential to compute for your monthly amortization (monthly payments). Input the car cost, down payment and loan period. Also indicate if it’s a brand new car or second hand. After completing all required details, click calculate and the auto loan comparison table will show the monthly payments, total interest paid over time, and applicable interest rates.
Paying in cash is simply risky for buying a car. It destroys your cash flow and even before a normal working Pinoy has that amount of cash, the value of the car has already diminished. Car financing through a loan is the best option for anyone who plans to enjoy the benefits of the car and to also make sure that someone’s cash flow is in top shape.
Definitely! Most banks provide a loan for used cars. Car financing in the Philippines for a used vehicle can also be financed in a traditional way (straight line) or pay the premiums 30 days in advance to gain a lower interest rate. Consumers have to remember though that interest rate for used cars is bigger than the new ones.
When availing a second-hand car loan, interest rates are usually higher because 2nd hand cars are riskier investments than brand new cars, due to the possibility of it breaking down or going for repairs which would be more frequent compared to a brand new car. Banks consider this as their safety net for these investments in order for them not to suffer any loss in case repossession occurs. Interest rates for new cars differ by a whopping 2-5% difference and are the most common form of car financing in the Philippines. Websites are posting interest rates on auto loans in arrears which gives a rough estimate on how much does it really cost in total.
Documents showing proof of income and identification are primary requirements for getting a car loan. An ITR (Income Tax Return) and Government issued ID’s are for citizens, while resident foreigners need to show documents or proof of residency and income. For eligibility purposes, 30% of your income should cover the monthly repayments of all debt, may it be a house, personal or car loan.
Once your car loan is approved, make sure you’re getting the right auto insurance. Check the most affordable option by trying our free comprehensive car insurance calculator! Easily compare various car insurance deals in the Philippines and find out which coverage is right for your need. Give it a try and get a quote now!