car loan

**erickdpogi** · June 23rd, 2007 06:17 PM

* 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** · June 23rd, 2007 06:44 PM

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.

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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** · June 24th, 2007 04:45 PM

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** · June 24th, 2007 04:55 PM

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.

**hominid** · June 25th, 2007 09:37 PM

Originally Posted by 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.

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** · June 25th, 2007 10:51 PM

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** · June 27th, 2007 05:44 AM

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