Nowadays, taking out a car loan in the Philippines becomes easier than ever owing to easier rates, more efficient schemes and accessible information via the Internet. In the context of a buoyant economy, car buyers are likewise more intelligent as well as prudent when giving better decisions of choosing a suitable car loan among countless options in the market today.
Taking out a car loan in the Philippines now becomes easier than ever
In this article, Philkotse.com has gathered several popular car financing options which are currently available in the country to help your task of finding a right car loan more effortless. Before we start, please keep in mind that the final decision crucially depends on your specific needs and situation.
How to Find the Cheapest Car Loan
1. Bank loans
As the saying goes, this is the easiest car financing option you can opt for. Banks are located everywhere, not to mention the fact that you can go online to carry out transactions.
Banks are located everywhere, not to mention the fact that you can go online to carry out transactions
The reason why bank loans are well-liked is that interest rates are low. Of course, the rates are variable for particular bank and period yet they’re still outstandingly competitive. Moreover, apply for a bank loan is very simple if you have a bank account. Your entire task is just to let the bank retrieve your information from their database.
The lengthier your loan period is, the more money you have to spend on interest rates
Before choosing a bank loan, keep in mind that the lengthier your loan period is, the more money you have to spend on interest rates. Normally, banks can spread your monthly amortization for up to 5 years. Therefore, thoroughly think about this one if you intend to get in debt for 5 years or more.
2. Co-operative or credit union loans
Also providing you with good interest rates are co-operatives or credit unions.
This option provides you with good interest rates too
To be approved for their car loans, first of all, you must be their member. But do not worry as a plus point this financing option is that those establishments are not as strict as banks in terms of checking customers’ credit scores. As a result, no matter how your credit rating is, your chance of approval is still higher than seeking for a bank loan.
Your chance of approval is higher than seeking for a bank loan
3. Car lease
Car lease is a car financing option which is less popular than the two above. For this method, the lender buys the car you want and lend you that car for a given period. To you – the borrower, you have to pay the lender fixed monthly payments. At the same time, you obliged to be in charge of the whole costs incurred covering car maintenance, repair, car wash… during that time. Of note, while leasing the car, you will not be listed as its owner.
The lender buys the car you want and lend you that car for a given period
The special point of this scheme is that once it expires, you can consider among three choices:
- Return the vehicle
- Refinance it
- Purchase it
If you choose the last one, you only need to pay the remaining amount. And for now, you can definitely become the legal owner.
Those are 3 car financing options we would like to introduce in this part. Another three ones will be coming up next in our Part 2. So remember to visit our page regularly to keep an eye out for it as well as learning more about useful car tips and advice.