Second Hand Car Financing

**slapz** · August 16th, 2013 08:13 PM

How does it work?

I mean, direct seller of, let's say a 2012 Kia Picanto, how would you buy this car thru Financing? Go to a small bank?

Anyone experienced this before?

**archielew** · August 16th, 2013 08:52 PM

Originally Posted by slapz

How does it work?

I mean, direct seller of, let's say a 2012 Kia Picanto, how would you buy this car thru Financing? Go to a small bank?

Anyone experienced this before?

I inquired about this at BPI before I decided to just buy brand new. What I found out about their 2nd hand car financing:

1. Car should be at the most 5 years old.
2. Prospect car should be first brought to the bank for their appraisal.
3. They will only finance up to 70% of their appraised amount.
4. Interest rate for 2nd hand financing is higher than interest rate for brand new cars.
5. If car is 5 years old already, the applicable term is only 2 years.

HTH

**slapz** · August 16th, 2013 09:34 PM

Yeah, BPI is strict about it. But most of the time, small banks are willing to provide financing even to the older models.

**leodawesome** · August 16th, 2013 09:58 PM

Originally Posted by slapz

Yeah, BPI is strict about it. But most of the time, small banks are willing to provide financing even to the older models.

Yup, but sometimes they offer interest rates on-par or higher with those of big name banks, for the sole reason that they know big name banks won't let you finance older models and they are the only option you got. And also, financing 2nd hand cars from independent parties/institutions are a big NO NO because they give monster interest rates. AFAIK, sa banks ka lang makakakuha ng lowest rates.

**nhiecah_nice29** · August 17th, 2013 05:12 PM

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**tr1ck5h07** · August 17th, 2013 07:42 PM

Originally Posted by nhiecah_nice29

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**KERSMcRae** · August 21st, 2013 05:36 PM

Originally Posted by archielew

I inquired about this at BPI before I decided to just buy brand new. What I found out about their 2nd hand car financing:

1. Car should be at the most 5 years old.
2. Prospect car should be first brought to the bank for their appraisal.
3. They will only finance up to 70% of their appraised amount.
4. Interest rate for 2nd hand financing is higher than interest rate for brand new cars.
5. If car is 5 years old already, the applicable term is only 2 years.

HTH

what's the usual rate (%)? I've seen one ad sa sulit and it's almost 44% for the duration of the term. How about direct quotation from the bank? anyone?

For BDO, I think the vehicle should not be more than 6 yrs old until the end of the loan, based on their website.
Min DP of 30% and minimum loan amount of 100K
- - - -
but with the recent flooding, I have to defer scouting 2nd hand vehicle again..

**tr1ck5h07** · August 21st, 2013 06:45 PM

IMO, now is the best time to scout for 2nd hand cars because the flooded ones will be obvious to your inspection. As opposed to waiting a few months where the signs of water damage have already been repaired or hidden.

Sent from my Nexus 4