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How to Apply For a Car Loan
 
With loan shopping, you might feel you are the only one on the spot, but that's not true. Just as much as lenders are looking at you, you are interviewing them. Be prepared with your own list of questions:
  • What supporting documentation do I need?
  • Do you require me to purchase a vehicle through a licensed dealership?
  • How long will the process take?
  • What factor will my credit rating have?
  • What should my down payment be? Do you require a set amount?
  • What is the trade-in value on my car? (This question is relevant for dealer financing only.)
  • What would my base interest rate be? Will it ever change? Is that the best rate available? (Your base rate is the total yearly interest rate applied to your loan.)
  • To secure this rate, do I have to pay points? (Points are a percentage of the loan the lender may charge you as a fee.)
  • Over the course of the loan, how much interest would I end up paying?
  • What will my APR be? (APR stands for annual percentage rate and includes the base interest rate and any other costs associated with your loan.)
  • What fees are included?
  • What would my monthly payments be and for how long? At the end of my term, will a lump sum payment (typically a larger final payment) come due? Can I lock in on the quoted rates/points? Is there a fee to lock in? (Locking in means the lender keeps your interest rate and points firm for a certain amount of time.)
  • Can I make payments early without penalty?
  • Can you require full payment of my loan and why?

Auto Loan Check List: Questions to Ask Your Lender

With loan shopping, you might feel you are the only one on the spot, but that's not true. Just as much as lenders are looking at you, you are interviewing them. Be prepared with your own list of questions:

  • What supporting documentation do I need?
  • Do you require me to purchase a vehicle through a licensed dealership?
  • How long will the process take?
  • What factor will my credit rating have?
  • What should my down payment be? Do you require a set amount?
  • What is the trade-in value on my car? (This question is relevant for dealer financing only.)
  • What would my base interest rate be? Will it ever change? Is that the best rate available? (Your base rate is the total yearly interest rate applied to your loan.)
  • To secure this rate, do I have to pay points? (Points are a percentage of the loan the lender may charge you as a fee.)
  • Over the course of the loan, how much interest would I end up paying?
  • What will my APR be? (APR stands for annual percentage rate and includes the base interest rate and any other costs associated with your loan.)
  • What fees are included?
  • What would my monthly payments be and for how long? At the end of my term, will a lump sum payment (typically a larger final payment) come due? Can I lock in on the quoted rates/points? Is there a fee to lock in? (Locking in means the lender keeps your interest rate and points firm for a certain amount of time.)
  • Can I make payments early without penalty?
  • Can you require full payment of my loan and why?
How to Apply for a Car Loan
by: by Elizabeth Sprouse
 
car loan,auto loan,car loan philippines,ama bank car loan,refinancing,loansIt's 7:15 p.m. and you're finally on your way home from work. It's been a long day, but it's not over yet. You still have to pick up dinner and the dry cleaning before you can catch the bus. It's going to be 9:00 p.m. before you get home. As you finally find yourself seated under a pile of packages on the bus, you begin to daydream about having a car. No more taking the bus or train. No more riding your bike in bad weather. No more sitting in the back seat of the carpool -- you could be the one behind the wheel.
Your neighbor just got a cute new coupe. If only you could too. But how would you pay for a car? By doing what most car buyers do -- apply for a car loan. Purchasing a vehicle can be a little overwhelming, especially handling the financing part. But it doesn't have to be. It is possible to navigate the car buying and financing process smoothly. First, you need to have a good understanding of who the lenders are.
If you have an established relationship with a bank or credit union, that might be a good option to consider. Typically, banks have conservative policies and are geared toward individuals with good credit. It can be harder to get a bank loan, but it could mean a better interest rate. As non-profits, credit unions usually have low operating costs, which can mean better interest rates.
A finance company acts as a retailer selling money. It borrows money at wholesale, marks it up and lends it, and it's likely to have higher interest rates. Dealerships offer financing, acting as the intermediary between you and the lender. Buyers beware -- they make money offering this service through fees and markups.
If you own your own home, you can use it to get money through either a home-equity loan or a home-equity line of credit. Usually these loans have low interest rates and may be tax-deductible. However, should your home's value drop and you sell, you're responsible for repaying the home-equity loan, even if you don't make that money back. With a home-equity line of credit, you'll likely have prepayment penalties and a lien on your home until it is paid. In a lien, the lien holder (the lender) has first right to that asset until the lien is satisfied.
Now that you know who the lenders are, it's time to consider your credit.

Auto Loan: What can you comfortably afford?
reference from: http://money.howstuffworks.com/personal-finance/debt-management/apply-fo...
by: by Elizabeth Sprouse

Determining how much you can afford to pay is the most important step when considering a car purchase and applying for a car loan. In general, you should not spend more than 20 percent of your take-home pay (the amount on your paycheck, not your original salary) on all of your household's vehicles -- that means your car, your spouse's car and that old convertible tucked under the tarp in the garage. The exception to this standard might be a graduate just coming out of college who is living rent-free with family or friends but does have a steady, if entry-level, salary [source: Booth Hubbard].

Now before you start having visions of a fully loaded luxury SUV, keep in mind that a lot factors in to the 20 percent rule beyond the purchase price of your car. You need to consider how much money you can put down, the loan's interest rate and other factors. All of this adds up to the true cost of ownership, which includes:

Depreciation:  Cars are a depreciating asset; they lose value as they age.

Interest rate: This is the annual interest fee applied to your loan.

Insurance premiums: Find out how much your insurance will cost. Different types of cars may have higher insurance premiums than others do, especially if repair costs tend to be higher.

Fuel: Consider which grade of fuel your vehicle requires. How far will you be driving each week? How much gas will you need?

Taxes and fees: You'll be paying sales tax and fees to register your car with the state as well as annual property taxes.

Maintenance: Maintenance on vehicles varies, and there is not a tried-and-true way to gauge these costs -- but keep in mind things like oil changes and new tires.

Repairs: Repairs might not be an issue for new cars, but over time and with pre-owned cars, repairs will have to be factored in to your budget.

Federal tax credits: Are there any government incentives available for purchasing a certain type of car?

All of these calculations and factors may seem daunting, and no doubt there is math involved. However, there are lots of tools online, including payment calculators.
If you've used one of those calculators and you're ready to go shopping, don't go just yet; you can still do a bit more homework to streamline the process.

Car Loan Philippines charges rate for as low as 0.5%. The best offer you can get. Contact us now.

car loan,auto loan,car loan philippines,ama bank car loan,refinancing,loansAre you dreaming of buying a new car or even a slightly used one? Thinking of purchasing a car is a dilemma for most Filipinos as chances are, they don't have enough money saved to pay in cash.
 
There's no other way to achieve your goal but to get a car loan. Many banks and financial institutions offer this kind of loan which is similar to a personal loan but the only difference is that it can only be used for the purchase of a car. Auto loans are sometimes backed by a security or collateral but most are not depending on the kind of car you are buying.
 
Interest rates for an auto loan varies from institution to institution but here at Car Loan Philippines | Auto Loan Philippines (carloanpilipinas.com), we only charge a very attractive rate as low as .5% per month. Aside from our lowest rate, our car loan services are different from others because we not only strive for flexibility, convenience, and customer satisfaction, but we are achieving these goals on a daily basis. Regardless of what your current credit situation is, or has been, we are very confident that there is a car loan which can meet or exceed your needs for a new or used automobile.
 

Interested in Car Loan Philippines offer?

 
car loan,auto loan,car loan philippines,ama bank car loan,refinancing,loansFinancing a new car purchase requires some research. Before venturing out to the car dealerships uninformed, let's take a look at what you will need to know about the car buying process.

First of all, about 70% of all new car purchases are financed. So unless you plan on paying cash for your new car, or you are going to apply for a car loan, chances are you will be financing your purchase.

 
 
 
1. Determine your financial situation
This is the first and most important step in the car buying process. You must know how much you can spend before you can determine what you can afford. You don’t want to get stuck making a bloated car payment that will leave you eating bologna sandwiches for three years.
 
First of all, you need to have a monthly budget. This is very easy to calculate. Add up all of your fixed monthly expenses, such as your rent/mortgage, phone bill, etc. Subtract that from your net income. Then subtract your estimated extraneous expenses, such as food, gas, entertainment, whatever. The result should be an amount of money you have to play with.
 
2. Decide which car you want
Now that you have settled on a monthly allotment, now you can look at which vehicles fit into your price range.
 
This is really about personal choice, but a good criteria to go buy is to look at what your needs are. 
 
Once you’ve narrowed your choices down to a couple, it’s time to do some car research.
 
3. Do your homework
 
Look at interest rates. You’ll want to get the lowest possible interest rate, as it will help you pay less in the long run. Many car buyers focus on getting the lowest possible down payment. If a car dealer gives you a low down payment, the money you are saving has to be made back. Car dealers will find ways to lower your down payment, and as a result will find ways to compensate for their generosity. By deferring the down payment “savings,” with interest, you’ll end up paying more in the long run.
 
You should also look out for rebates. When incentives are offered, this often means the manufacturer wants to either get rid of slow-selling cars or reduce the inventory. Therefore, they may also offer the buyer a cash rebate and a low financing rate, or an option of one of the two.
 
4. Go to the car dealerships (Car Loan Philippines)
Now that you have an understanding of what kind of rate you will be offered, you now want to go out to the car dealerships. You already have an idea of what kind of car you want, how much you can spend and what kind of perks you can get. Also you have an idea as to what different car dealerships are offering. This is quite a bit of information for you to carry with you into the negotiating process. But again, the more you know, the better off you’ll be.
 
But remember:
 
Remember that you are in control at all times. You have the right and ability to stand up and walk out of the office at any point and the dealer will lose the sale. Don’t let a car dealer intimidate you. Be relaxed and comfortable you know all the information and that you hold all the cards.