Maricor Bunal
2016 will be a lucrative year for car manufacturers, many experts say. And this is due to the improvement in the public’s purchasing power coupled with the favorable car loan packages banks and private lenders offer. Many car financing providers have made their packages more accessible to the masses, lowering income requirements, giving non-collateral options, lengthening the terms and reducing the interest rates.
BANKS OFFERING CAR LOAN WITH CORRESPONDING RATES
Besides, the two-digit revenue growth started last year served as a head-start, for both car makers and financing providers. One thing people need to be wise about, though, is in finding a suitable lender who can match your needs as a borrower. With that in mind, this chart might get you started in comparing the prices and features.
| Bank Name | New Vehicle Down Payment | Minimum Loanable Amount | Tenure |
| BPI | 20% | PHP 200,000 | 1-6 years |
| BDO | 20% | PHP 100,000 | 1-6 years |
| Metrobank | Flexi | PHP 250,000 | 1-5 years |
| PSBank | 20% | PHP 100,000 | 1-5 years |
| PNB | Flexi | PHP 300,000 | 1-5 years |
| UCPB | 20% | PHP 100,000 | 1-5 years |
Getting a car loan can be a bit tricky if you don’t know what to look for. While it’s common to focus on the interest rate, many consultants would advise you to consider these aspects, as well:
Convenient mode of repayment
Mobile and online banking are the most convenient. But there are also banks with post-dated cheques and auto-debit payment options if you like it that way.
Customer service
Pay attention to how the bank handles you as borrower. You’ll need their support throughout the loan tenure, so you better choose the one with good customer service.
The car’s purchase price
Study the specs of the car you want before you go to a dealer. Then, don’t hesitate to say no to add-on features you don’t really need. This will greatly reduce the vehicle’s purchase price and, consequently, the interest rate.
Fast approval
Know the bank’s processing time and submit your pre-qualifying requirements on time. Banks usually approve applications from those with all the documents. So, this aspect party depends on your ability to present relevant papers.
Ease of application
Many lenders offer online application portals, which you might be so wise to use.
Money matters can easily get out of hand if you’re not keen to details, overlooking the small numbers (e.g., car’s add-on features, tenure) that may have a great impact on your overall loan. One good way to ensure everything is well-handled is to use a loan calculator. This will allow you to experiment on the figures and determine the best amount to loan so that you can make payments consistently until the maturity date. Apart from this, it also helps to contact Loansolutions PH financial consultants to help you compare the perks, facilitate your application and make the right choice.
