HAVING an own car is almost everyone’s dream and a big achievement.
Nowadays buying a car is much as easy compared to previous years. As long as your salary ranges from P20,000 and up and you have a stable job, you will have an easier loan approval. You are considered qualified to have a brand new car.
In this modern world, having a car is considered a necessity.
For almost five years of working in a top non-life insurance company, I’m having daily engagements with different banks to facilitate their insurance needs. From different clients that we assist daily on their unit repairs, I have noticed good car deals car or bank loans promo available in the market. Also due to different bank companies and car brand competitions, lots of promos are coming out like mushrooms. Some of the banks offer called it the All-in promo or it can be the lowest rate that are surely be very convincing to our eyes and ears.
Here are some of my friendly tips on buying a car and get the best car loan deal:
If you’re planning to buy a car with a tight budget, I suggest to at least cascade five banks and have a loan computation and not only search what bank is the fastest in approving the application. The all-in promo that is offered by various banks is also a good deal if you allocate less amount of down payment and want to utilize your money with some other practical stuff. With free chattel, Insurance and LTO registration, its already a good deal, but take note on the monthly amortization, its more bigger that the normal car loan; obviously to recover the expenses that the bank will shoulder with those free stuff.
If you have enough funds on your dream car take the regular loan, as it offers less monthly amortization, but you need to shoulder the chattel, Insurance, LTO registration and standard down payment. It’s better also to buy the car through cash as you will more enjoy discounts at the car’s actual SRP and no more headache for the monthly amortization. But reality you need a big amount to have it cash and it’s very hard to achieve especially for us average employees.
Be a wise buyer as always, and look for more discounts, lower rates and always compare notes. Do not rush in availing loan and always ask questions, like the consequences if you fully pay the loan early within the agreed contract. Some of the banks have service charges which maybe a disadvantage in availing a car loan.
Consider sometimes the advices and think about it, like is your finances already stable and are you able to pay the monthly amortization. Talk with a friend who handles car loans. Per his advice you can already decide if you’re ready to avail a car loan if the monthly amortization value is only 20 percent to 30 percent of your salary. Remember it’s not only the amortization itself, each car will always ask for gasoline, periodic maintenance like change oil, etc., and unexpected events like accidents. Even though it has insurance but still you will pay the participation, also insurance expenses are also costly as premium will depend on the value of the car.
Will be glad if you will read the continuation of my topic next week about choosing the car for you.
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Published in the SunStar Cagayan de Oro newspaper on July 17, 2017.