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Finding the Best Car Loan Deal in the Philippines

by Money Team
31 Jul 2017 | 2:10 PM

For many Filipinos, applying for a car loan is an easy way to get behind the wheel of the vehicle they want.  Whether it's for personal or business use, buyers have plenty of loan options to choose from. Many banks and financing institutions offer car loans in the Philippines. It's up to you to choose the lender that provides the most convenient deal.

Driving your dream car is a wonderful and fulfilling experience. The difficult part for most buyers seems to be finding the right financing solution. Well, worry no more, as this article talks about how you'll make the most out of car financing. Learn about the things you need to know and do when looking for the best car loan deal in the country.

Setting Your Goal

Goal setting is an important part of the entire car buying process. You need to be certain about the type of car you want to buy through financing. Will you go for a Toyota, a Mitsubishi, or a Honda? You should know exactly what you want to make the process easier and faster. Choose the car type and model that suits your needs. Consult your family members if you're undecided. They may provide inputs that will help make up your mind.

Assessing Your Finances

You know yourself better than anyone else does. That also applies when it comes to your finances. Know your financial capability before you even choose a car. Your employment status, savings, and monthly income are some of the most important factors to think about. It's ideal to finance a car that suits your budget and payment capability.

Starting the Search

You already know what you want and how much you can afford. It's time to look for the best car loan deal. Banks are among your best options when it comes to auto loans. Big and small banking institutions have unique offerings, so take time to compare. Some offer as low as 6.5% interest rates, depending on the vehicle type and model. Remember that interest rates may vary depending on the loan you choose. Talk to the loan provider to learn about your options.

What Affects the Loan and Interest Rate?

The car loan and interest rate don't only depend on what you see on the product description provided by the auto lender. Your decisions will also affect the loan amount and interest rate of your vehicle. Paying a higher down payment, for example, is a good way to reduce the monthly interest rates. The same is true with choosing a shorter loan term. This, however, depends on your financial capability. Shorter terms mean higher monthly payments, so review your finances before making a decision.

The Best Way to Estimate Your Loan Payments

Banks and other car loan providers offer a quick way to estimate monthly loan payments. Try using their online loan calculator to get a clear idea of how much you'll pay every month. You just have to enter the vehicle price and choose a down payment rate, along with a specific loan term.

Get ready to get behind the wheel of your dream car. Browse the Internet or read print ads to learn about the latest car loan deals offered by different dealers and lenders nationwide.