Steps in Financing a Car
Let’s say that you’ve had it using cabs, Uber, GrabCar, and other modes of public transportation and you’ve finally decided to have your own car. Having your own car gives you that personal space that the Philippine public transport system can’t provide.
Next, you have found the car that you want to purchase. Once you’ve done this, it is crucial that you know the necessary steps in auto-financing.
Financing a car can be a grey area for a lot of Filipinos. Auto-financing is not as complicated as everyone thinks it is. Here are the necessary steps that you need to accomplish.
Choosing between a bank or in house financing
First is that you need to choose between in-house or bank financing options. Both function the same way. If you are going to get a car financed via banks, you need to show them your income tax return, business permit, or your employee’s certificate. This proves that you have a steady income. Then, they will also be checking your bank account with them.
For an in-house financing option, it is easy to get approved. But of course, they will also do the necessary character investigation. They will call your house, employment and even visit the place where you live. This will ensure that you have what it takes to pay for the monthly amortization for your car.
Submitting the requirements
Requirements are quite straight forward for both the in-house and the bank financing option. For the banks, they can give you the option either to pay via postdated checks or simply hook your online bank account wherein you’ll be settling the bill automatically. Also, you will need to show some valid IDs along with the bank statement, income tax return, and proof of income whether it is from a business or employment. And of course, you also have to prepare the down payment.
So how much is the down payment? The down payment is normally at 20% of the total cost of the vehicle. But of course, there are instances when you could pay as little as 10%. If you opt to just pay a small amount of down payment, you also have to consider the fact that you will have a higher monthly amortization.
Signing the paper
Once you have submitted all the requirements, you will then be signing the paperwork. If you are already married, the car will be conjugal property. This makes the wife automatically your co-maker.
Financing a vehicle shouldn’t be too complicated. You have to realize the fact that it is a good idea to learn these steps in order to lessen worries and anxieties. It is also advisable that you stick to your own bank, especially if you had an account with them for years. Banks take care of their depositors.
And of course, you should never forget to haggle. If you are going to pay for the vehicle for the next years to come, try to haggle for the interest rate. It isn’t as complicated as you think it is. Following these simple steps and you are good to go.
