When purchasing your first car is a rite of passage into adulthood but what if you can’t afford to spend your entire life savings on a car? Nowadays, it’s been easier than ever to get an auto loan from a bank that is why bank is always in the people’s side when they want to get a car without problem by having a loan.
A car dealers also offer auto loans it’s usually best to stick with a bank especially one you already have a relationship with you still might want to check out promos and freebies from the dealer, but don’t forget to watch out for hidden charges, always check the receipt and possibilities of hidden charges that you didn’t know. Most dealers charge a higher interest rate since they serve as the middleman between you and the bank. Plus, they earn commission from the transaction.
For first-time car buyers in the Philippines, here’s a guide on how to apply for an auto loan from a bank.
These are the typical requirements for a car loan applicant in the Philippines are the following:
- You need to be at least 21 years old and no older than 65 years old upon loan maturity.
- You must have a minimum monthly household or family income (from P30,000 to P50,000).
- You have to be a resident of the Philippines; for OFWs, the beneficiary has to be a resident of the Philippines.
- You have to be a regular employee for at least two years.
Once you’re sure you meet the minimum requirements it’s time to crunch those numbers and then make a budget of income and expenses. Be as honest and realistic as possible now before making the financial commitment to take on an auto loan. You should end up with an estimate of how much you can spare for your car loan.