Updated March 16, 2017
Terrible traffic is inevitable for commuters along with the inconveniences it brings, especially during the rainy seasons. We have heard countless stories of stranded passengers, those who have braved the flood, the ones who walked the MRT rails as the train broke down again, and those who have encountered rude taxi drivers. Banks have created their own auto loans in response to Filipino’s growing desire to have their own car.
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One of the most availed auto loans is the BDO Auto Loan, yet how flexible is it?
BDO Auto Loan Eligibility
BDO Auto Loans are available for Filipinos aged 21 to 65 years old. If you are a foreigner, you can also apply only if you are already residing in the country for two years with the required Visa. Your family must have a minimum gross income of P50, 000 a month. Before you can get a loan, you must be employed for the past two years in your current company. If you are an entrepreneur or a freelance worker, then you must be able to prove at least 2 years of profitable income with bank statements and ITR.
BDO Auto Loan Calculator
When considering an auto loan, it is important to use the auto loan calculator to give you an idea on the bank's offered interest rate ans loanable amount.
- Interest Rate
When Filipinos get a loan, one of the first things they check is the interest rate. It is a great idea to compare the charged interest rate from one bank to another, however, it will be hard to visualize its total impact to the borrowers’ lives. It is best to use a loan calculator to make a better-informed decision than just by looking at the interest rate.
With a loan calculator, you will not only compare the interest rates, you will also see the monthly repayment you have to do and if you can pay it at ease without sacrificing your daily needs. BDO offers auto loans for both used and pre-owned cars. The loans for brand new vehicles have an interest rate of 16.48 to 29.51%, while the pre-owned cars are charged with 16.39 to 34.93%.
- Loanable Amount
The loanable amount varies in every bank. The BDO Auto Loan minimum loanable amount is P100, 000, however the maximum loanable amount will depend whether you are buying a new car or a used car. You have to pay a higher downpayment for used vehicles than the new ones, this is because it is riskier to finance a used car since it has already depreciated and there might be underlying issues with it. New cars will yield more returns if it is repossessed by the bank and sold in some way.
- Loan Purpose
An auto loan has various uses. While it’s main use is to acquire a vehicle either used or brand new, you can also use the BDO Auto Loan to reimburse the brand new unit you had purchase either for personal or business use.
- Payment Method
One of the important considerations you have to check is the convenience of the loan repayment method. BDO Auto Loan can be paid through Automatic Debit Arrangement (ADA), Post-Dated Checks (PDC) and Over-the-Counter. For the first two options, you have to make sure that your account has enough money to service the repayment, as for the over-the-counter, you have to personally go to the bank and make your payments. If you have a tight schedule, it will be hard to squeeze it in.
- Loan Process
Since you are borrowing from a bank, the loan process is expected to take days. While they say that your loan process will be approved in 24 hours, you have to be sure all your requirements are complete. Your request will not be processed unless you comply with all the requirements. Also, even if the loan approval takes only 24 hours, the cash disbursement will also take time.
- “All Inclusive” Financing
BDO has an “All-in Financing Offer” which includes a 3-year LTO Registration, Chattel Mortgage Fees, and the first year of the Car Insurance Premium. This is one of the marketing edges developed by BDO to get more auto loan applications.
BDO offers various promos and exclusive discounts such as free gas depending on the amount of loan you are going to get. You can also earn points and get rewards and freebies from SM Malls and other partnering stores.
- Promo has very limited terms
While it is amusing to get free gas (Who wouldn’t love free gas?), the period of term is very limited and it is only offered to those who are going to use the auto loans to finance a brand new car. The BDO rewards option is only for those who already have an existing BDO Rewards Memberships.
- The minimum required monthly salary is higher than other auto loans
Other banks require only P30, 000 minimum monthly salary, while BDO entails their applicants to have at least P50, 000. If you are earning less than this, then you can’t get an auto loan from BDO.
- Car insurance is required
When Filipinos plan to get a loan, they shop online and check the loanable amount and the interest rate they will be potentially charged with, however, they forget to prepare for the other fees needed to settle. As for the BDO Auto Loan, the borrower must also avail the bank’s car insurance to be approved of the loan.
- Must be currently employed for two consecutive years in a company
You must be employed for at least two years in your current company. This requirement, same as other banks, makes it impossible for those who haven’t been employed for 2 consecutive years to get an auto loan.
Being a bank, the BDO Auto Loan has its own limits which lessen its flexibility. If you need a flexible loan, you can get it from Cash Mart and experience a hassle free application.