Steps in Buying a car

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buying a car

Is buying a car part of your 2016 goals? If so, it is a good idea to have an idea on how to buy a car. Buying a car shouldn’t be a complicated scenario. As a rule of thumb, you don’t want to get a car that doesn’t fit your overall needs. Here are steps on how to buy a car.

 

Know what fits your needs

What is the purpose of buying the vehicle? Is it getting from point A to point B with your family? Or perhaps, it is a luxury car? Determining the purpose of the car will allow you to know what really fits your needs.

Most families get a sedan for practical reasons. It is more affordable, not to mention it is the size that they need. On the other hand, if you have a larger family consisting of five kids, then perhaps, a van would most likely be a better option.

 

Do you buy brand new or used?

There’s a massive market for new cars in the Philippines. In fact, a lot of individuals are getting new cars because of the convenience. An 8-year-old sedan could just be around P300,000. That is a far cry from its original price which is around P800,000. But with the condition of the brand new vehicles, it lessens the worries of car buyers.

 

Test drive the vehicle

Now that you have made your choice, it is time to test drive the vehicle. For used cars, you want to take note of all the issues on the vehicle. This way, you’ll find out if you really want to make the purchase or not.

 

Finance the vehicle

There are different options on how you can finance the vehicle. You could pay it for 12 months to 5 years. As a rule of thumb, you need to remember that financing option differs in interest rate. The longer it takes to pay the vehicle, the higher the interest is going to be.

How much money do you need to prepare? It is imperative that you cover for the 3-year LTO registration, comprehensive mortgage along with the fee for the loan contract.

 

Finding the best loan option

Banks will typically scrutinize if you could pay the loan. You have to understand that a credit check will most likely include your bank account, income tax return, employment certificate, or even a business permit. These things will already give the bank an idea of whether or not you are deserving of the loan.

Paying the loan can either be made electronically via online banking, or it could also be done via postdated checks.

Once you have all the documents ready for the loan, the dealership could now release the car. The release of the car really depends on the bank.

 

Insurance

How do car insurance policies enter the picture? In order to be approved of particular loans, banks typically require that you submit the necessary car insurance documents. This way, the bank is sure that you are not going to end up in financial ruins in case you encounter an accident.

Buying a car is an exciting experience. Regardless if it is brand new or used, a car is considered a most coveted asset in the Philippines. It is a good idea that before you invest your money, you figure out how the process works exactly.

 

 

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