10 Important Things You Need to Know About BPI Auto Loan
BPI Car Loan Requirements
Suppose you are now ready to have your first car, then either you pay the ride in cash without any worries of monthly amortization or choose an auto loan that you think you can handle with ease. If you choose BPI Auto Loans, then you must be a Filipino citizen or a foreign resident who can present a Filipino co-maker. The Filipino co-maker must have stable income and of legal age. Those ages below 18 are still too young to avail the loan, while applicants who are above 70 years old are required to have a co-borrower below 70 years old.
The BPI Auto Loan is available for both employed and self-employed with a monthly family income of at least Php 30,000.00 and has the intent to borrow at least Php 200,000 to pay for a vehicle.
BPI Car Loan Calculator
Each bank has its own way of calculating loan amortizations. It is important to check out BPI’s auto loan calculator to have an idea on your loanable amount depending on your salary, interest rate, loan term, and downpayment.
BPI Auto Loan Interest Rate
The BPI Auto Loan has competitive interest rates which may vary depending if you are going to purchase a brand new vehicle or a used one. Used cars tend to have higher interest rates as banks see them to have higher credit risk than new cars. In case of repossession, the brand new car will yield more returns than a used one. If you pay on the agreed due date, your loan will be charged with 4.77 to 27.28 percent for brand new cars and 7.72 to 44.17 percent for used cars. Fortunately, the charged interest rate will be lower if you start your repayment 30 days before your actual due date.
Brand New Car
4.77 to 27.28%
4.10 to 26.28%
7.72 to 44.17%
6.57 to 42.39%
Not all banks offer auto loans for used cars and trucks. With the BPI Auto Loan, you can have more options not only with the vehicles you can choose from but also with the offered tenure. You can get an auto loan stretching as long as 6 years for brand new cars and up to 5 years for used cars. If you are an entrepreneur, you can take advantage of this auto loan and get a brand new truck which you can pay in installments for 3 years.
Down Payment for BPI Auto Loan
When getting an auto loan, you also have to consider the downpayment you should pay upfront. After paying the downpayment, the cash you are required to produce, the bank will pay the rest of the amount. Then you have to pay the bank in installments topped with an interest rate. BPI requires the auto loan applicant to shoulder the downpayment of at least 20% for brand new cars and 30% for both used cars and brand new trucks.
You can borrow as low as Php200,000.00 up to 80% of the purchase price for brand new cars and 70% for used cars and new trucks. Also, your loanable amount is based on your income and creditworthiness as estimated by the bank’s credit investigation staff.
BPI Car Loan 2nd Hand Appraisal Fee
BPI requires a professional appraisal if you choose to buy a used car. If the car can be brought to the head office, you only have to pay Php1,000, but if the appraisal takes place at another location, you might have to pay PHP1,500 or higher. The appraisal will determine the value of the vehicle since vehicles depreciate over time.
While thinking of getting a car loan, do not forget to consider the number of months you are willing to strech your loan. It is better not to look at the amount of repayment every month, but to make your own calculations with the online loan calculator.
Mode of Payment
There are five flexible ways you can make your repayment: Over-the-Counter, Auto Debit Arrangement (ADA), online through www.bpiexpressonline.com, with a call to BPI hotline 89-100 or via the BPI Mobile text facility. You can even monitor your repayment through BPI Express Online. Should you miss your repayment, you will be charged an additional 5%.
Covers a wide range of cars
BPI has partnered with over 300 auto dealerships. It has also created a user friendly platform in its website where you can actually choose from a wide range of cars and brands. From there, you can also easily know if you can afford the ride with your eligibility and current income. Depending on your preferences, you can get a brand new car, a used car not older than 5 years or a brand new truck. BPI also finances brand new imported cars.
You can take a self-assessment in less than a minute to know if you are eligible for an auto loan. Once you are pre-qualified for a loan you can start your online loan process and get an approval in 3 to 8 hours provided that you have completed the requirements.
Convenient repayment method
There are five ways to repay your auto loan. You can use Auto Debit Arrangement (ADA), so there is no need to worry if you are forgetful of important dates. The bank will automatically deduct the amortization amount from your bank account to pay your loan. You can also repay through online, text, call and over the counter (cash or check).
With incentives and freebies
Sometimes BPI introduces perks such as a free one month amortization. The perks are only offered for a certain period of time. Before you get an auto loan, check if the bank has a current promo you can avail of.
Downsides of BPI Auto Loan
Needs co-makers for certain clients
According to the eligibility requirements, foreigners and those older than 70 can avail of their auto loan. However, there is a need to present a Filipino co-borrower who can also meet the set of requirements.
Only accredited insurance companies are accepted.
If you have chosen an insurance company that is non-BPI accredited, you need to ask for the bank’s approval. You cannot refund the paid documentary stamps if the insurance gets denied. You can get cash from Cash Mart today if you need more cash to drive your ride home.
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