Many people can’t afford to pay all at once for a car. Therefore, installing a car is increasingly popular, especially in the Philippines.
This article will show you the benefits of car monthly payment Philippines and the loan process. If you are curious about this form of car payment, scroll down.
2 Car Monthly Payment Philippines Options You Should Know
You can choose bank financing if you have a good credit reputation with banks in the Philippines. Car buyers will borrow directly from the bank without going through any intermediaries.
With this form, you will pay the loan monthly for 12 to 60 months. Besides the money to buy the car, you will have to pay more interest to the bank.
The advantage of bank financing is that you can choose between different banks. Bank interest rates are 4% to 5% lower than dealership financing.
Dealership financing will be the right choice if you want to buy a car and get an installment loan at the same place. This form is almost similar to bank financing.
The loan application process is faster and easier than with the bank. You can also choose between many different dealers. However, the interest rate will be much higher than a bank’s.
Benefits Of Car Monthly Payment Philippines
The Cost Is Spread Out Over Month
Instead of paying a large sum all at once, the amount is spread out over the months. This will reduce the burden on car buyers. Paying off debt each month will also increase your motivation to work.
Get A Vehicle Despite A Limited Budget
This form of buying a car will be perfect if your finances are not good, but you still want to own a good car. Especially for those who use cars to make a living, buying a car in installments is even more necessary.
There Are Many Options To Choose
In the Philippines, every bank and dealer takes out an installment loan to buy a car. So you can choose between lenders to find the most suitable one.
The Process Of Getting Car Monthly Payment Philippines
Step 1: Check Your Eligibility
If you borrow through a bank, Philippine banks will have certain conditions for lending. These conditions relate to your age, nationality, salary, and current job.
Your credit score is also extremely important. It determines whether you can get a loan or not and at what interest rate.
For borrowers through a dealer, the conditions will not be as complicated, but there will still be certain conditions that you must meet.
Step 2: Consider Your Financial Capabilities
Consider how much you can pay each month because the bank will take your car back if you don’t pay your loan on time. Calculate the costs you must spend on the car, such as gas, insurance, and maintenance.
Once you have determined your loan, you can calculate how much you’ll have to pay each month. Most banks have a loan calculator for you to calculate this amount.
Step 3: Choose Where To Borrow
First, consider whether bank or dealership financing is more suitable for you. Once you’ve decided, determine which bank or dealer is in your best interest.
Consider based on the interest rate, loan term, and loan terms. Each bank has different policies for each model, so consider your car model.
Step 4: Fully Prepared For The Loan
Please prepare all the documents based on the lender’s requirements. In the Philippines, most places require valid government-issued ID, employment certificate, financial statements, etc.
Step 5: Submit Your Loan Application And Wait
After fully preparing the lender’s requirements, you must apply for your loan. At some banks, you can do that online.
Once your application has been submitted, it will take time for the bank to review it. Once approved, the bank will contact you if there are any missing documents and when the loan is completed.
The article has given the options you can choose when buying a car on installment. It also gives benefits of car monthly payment Philippines and loan process. In addition, you can see more car buying promotions here: https://philkotse.com/all-promotions-in-the-philippines
We hope we have helped you make your decision. Make your choice based on your wishes.