Do you know what to consider in a car loan?
Purchasing your own car is a dream for a lot of Filipinos.
Having a ride does not only mean a social status symbol, it also brings convenience in your everyday travel. You can also invest in a car and use it as a sideline.
However, buying a car is not as easy as banks want you to believe. It may make cars more affordable, but it takes more than just shopping for a pretty car.
It is vital to understand car loans, how it affects your finances, how it works and what to consider.
With too many car loans offered to Filipinos, will Asia United Bank Car Loan be your best option? Take time to read before jumping to any decision.
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AUB Auto Loan Eligibility
Why is it important to know the general requirements or eligibility? This will give you an idea if it is possible to get an approval for a car loan. It saves time, effort and money. It’s not fun getting declined because you did not qualify for the eligibility.
As for the Asia United Bank Car Loan, most of the general requirements are not disclosed. What we can be sure of is that borrowers must be of legal age and with a regular source of income.
Most banks and other lending institutions require their car loan applicants to be at least 21 years old with a year of employment as a regular worker in the current company.
Self-employed individuals must also prove that their business has been thriving for at least two years.
AUB Auto Loan Requirements
The required documents are usually in three categories: valid IDs, proof of billing and proof of income. While these are only three types of documents, they come in various forms depending on your work, your lifestyle or business. Take note that banks have various lists of required documents.
AUB requires its car loan applicants to present a filled-out application form, two valid IDs (preferably government issued), Income Tax Return, Certificate of Employment (COE) for employed applicants, last six months bank statement, and DTI Registration for self-employed applicants.
AUB Auto Loan Amount
Why should you consider the car loan’s loanable amount?
It is crucial to borrow only what you need. AUB offers P200,000 as the minimum loanable amount for its car loan. You must not be tempted to borrow such amount if you don’t need it. Remember that the higher amount you borrow, the higher interest you must pay.
AUB Auto Loan Term
Loan term is the time period for a loan to be settled. Longer terms usually have lower monthly amortization, however, this means that you are getting a financial responsibility for a couple of years. And having a long-term loan may lead you to pay higher interest. AUB offers car loans which can be as short as 12 months up to 60 months or five (5) years.
AUB Car Loan Interest Rate
We all know how important it is to consider the loan’s interest rate. AUB does not disclose its interest rates. You have to make a personal inquiry to get an idea on how much they charge for interest.
Interest rates usually depend on the loan term. Other banks charge lower interests to their loyal clients.
AUB Car Loan Mode of Payment
This loan is payable via Post-dated Checks or Auto Debit Arrangement.
Make sure that if you are applying for a car loan, you can pay each monthly installment with ease. AUB, like most banks, get loan amortizations through Post-dated Checks or Auto Debit Arrangement.
Tips for Getting a Car Loan
Tip 1: Consider your finances
Getting a car loan is acquiring financial responsibility. You need to pay each month for your car. Failure to meet the monthly amortization may incur penalties.
Another thing to consider is the total amount of loan and fees you are going to pay. Banks do not just earn through interest charges! They also charge processing fees, appraisal fee (if applicable), stamp duties, car insurance and others. It is best to ask for a detailed quote first.
Tip 2: Choose the car you need not just what you want
When buying a car, you need to draw a line between your needs and wants. Cars are not cheap unless you are rich. They are expensive and made affordable with a car loan.
It is best to choose the one you need because you are going to use it for a long time. It will be too bad if you realize that you chose an overly expensive car out of a whim. Then it will be too late because you have to pay the car loan for a couple of years.
Tip 3: Use AUB car loan calculator
It is best to use a loan calculator before formally applying for a car loan. You can easily estimate how much you have to pay for a month and if you handle it without sacrificing your basic needs.
Tip 4: Take care of your credit score first
Before you apply for a car loan (or any loan in banks), it is best to analyze your credit history. You know in yourself if you have unpaid loans. Even if you try to hide it, banks can easily review your credit history through credit bureaus.
Tip 5: Learn to negotiate
If you are getting your car from a dealer, learn to negotiate if you are being offered packages or freebies. Decide which one do you really need and swap it for the offered packages which you don’t need. Ask what type of insurance you have to get or if you can get it from a non-affiliated provider who offers a cheaper. This can make your loan amount lower.
Before getting a car loan, it is best to take your time and compare their features.
On the other hand, if you just need a loan for a minor car repair, you can get a flexible online loan from Cash Mart.