Jefanie Genilla
I am an OFW and I want to get a car loan for my family in the Philippines, but I don’t know how.
Purchasing a car is a move to be very excited about because this would mean you’ll have a more convenient mode of transport. For our OFW friends out there who are planning to purchase a vehicle using a loan, just make sure to avoid the mistakes listed in this post to get a good contract.
For many OFWs, working abroad is a just means to earn more, the ultimate purpose of which is to have the things you dream of for yourself and your family.
Owning a car is probably one of your goals in life, along with other milestones in life like going on a vacation abroad or buying real properties. One thing to keep in mind, though, is to think and plan carefully first before making the purchase. Remember, a car is an expensive commodity. The good thing about car shopping today is the availability of various car loan options to choose from. Unless you want to buy in cash, getting a car loan is a good way to maximize your money and put your cash in other investment vehicles.
Also, you have to bear in mind that not all auto financing products are created equal. You need to invest time and effort to research, verify and compare the prices of different providers to get a good offer. To land a suitable deal, make sure to avoid these mistakes:
- Not doing enough research
This is the worst mistake OFWs can make when buying a car. More so if they opt to take out a car loan for the purchase. The country’s lending industry is now very competitive with providers doing ways to attract clients with misleading low-cost loans. Before you sign a contract or even talk with one of your prospect providers, make sure that you have a list of the car features you want, as well as the model, price range, expected maintenance cost and interest rate.
- Not being clear on what you need
Don’t just join the bandwagon or trend. Instead, specify the features you like your car to have, as well as your intended usage. Also, calculate your capacity to pay, especially on how much you can afford to shell out each month for the loan amortization.
- Not taking a holistic approach to the purchase
Aside from the price, there are actually a lot of other factors to consider when choosing a car. Specifically, you have to look into the mileage, maintenance cost and interest rate. The total cost in itself also has different components such as the purchase price, monthly amortization and interest rate. The trick here is to list all the possible aspects you need to consider and rank them according to your priorities. This will allow you to determine which aspect is negotiable and non-negotiable and which is necessary and unnecessary.
- Not reading the fine print of the contract
Many lenders, especially those loan sharks, trick their clients by putting catchy terms in the front page of the agreement. A naive borrower would immediately get attracted to this offer without bothering to read the rest of the contract, which may probably have unfavorable terms.
- Not waiting for the perfect timing
Borrowers might like to keep updated as to when car manufacturers would put any of their units on sale or at a discounted price.
Purchasing a car is a thing to be very excited about. Just make sure to keep the points above in mind when looking for a car loan to buy to ensure you really get the vehicle you want at a price that suits your budget.
How do you avoid all these mistakes? Look below.
Get Help from Experts
If you don’t like to undergo the hassles of researching for the best loan to get and processing your application yourself, ask assistance from these guys – Loansolutions. This 2-year old Fintech startup pride itself of its comprehensive service and their easy 3-Step Online Application Process that offers convenience to borrowers.
