Infographic: How to get a car loan

Posted at 04/13/14 8:37 AM

(Editor's note: This article was written by MoneyMax, the Philippines’ foremost online platform for comparing financial and telecom products and services, for ABS-CBNnews.com. Find out more at MoneyMax.ph.)

MANILA, Philippines – Everyone dreams of driving their first car. Who doesn't?

But have you ever thought about actually getting one? Some say that it will take them a few working years to purchase their first vehicle. Most would hopelessly claim that it’s a decade or a lifetime of saving money before they can even buy one. Making a personal investment,such as buying a car, always competes with meeting the expectation of being financially independent and fulfilling family obligations which are often top priorities.

While the auto industry is expected to grow at a rapid rate because of an increase in loan applications and approvals, there are still a lot of consumers who are quite hesitant when they hear the word “loan” as it automatically implies “utang” with soaring interest rates.

Just like the other types of loans, an auto loan gives you the financial flexibility that you need to purchase a brand-new or a secondhand vehicle even if you don’t have enough savings. Yes, there’s a chattel mortgage fee and interest.

However, you can easily identify ways on how you can minimize the additional fees that you will have to pay for throughout the loan term.

As consumers, you need to constantly educate yourselves about products and services before making any transaction. Oftentimes, the information initially provided by banks or car dealers are just enough to attract you to buy and sign a contract. Read more about all terms and conditions and all other pertinent details concerning the payment scheme.

The key is to compare.

Don’t get too excited when scouting for a vehicle or sending an auto loan application. Make an assessment of the vehicle that you want to buy and be sure that you select the best auto loan with the lowest interest rate and the best payment terms.

Set a timeframe for yourself.

There’s no need to rush, but you certainly don’t need to wait for your hair to turn grey before purchasing your first car.

MoneyMax.ph has prepared an infographic to ease you through your auto loan application: