How to Get a Used Car Loan in the Philippines

How to Get a Used Car Loan in the Philippines

A long time ago , long before the current financial meltdown, there was a time when people in the Philippines could buy or rent a used car. This happened due to a lack of infrastructure, or simply the cost of importing cars from abroad. However, now, these days, this option is no longer available as most of the car imports are already coming from China, Japan and the other Asian Tigers.

Https:// Now, how can Filipinos avail of used car loan rates in the Philippines?

They will do it the traditional way – going to their bank or financial institution, filling out their personal credit applications. Most banks here still require that borrowers have a good credit standing before they can avail of any used auto loan rates. This is so they can protect themselves from being scammed by those who want to take advantage of those who are desperate for money. It is also so the bank can make sure the borrower is really trying to get into a used auto loan and not just walking out with some of the money in his pocket.

But then again, why is this? Why does a country with a relatively new financial system find itself having banks that are reluctant to extend credit? There are a lot of theories on this. Some believe the whole system is controlled by major players in the country’s business establishments. Other think that the banks were slow to react to the proliferation of electronic invoicing and that they were hit by the subprime mortgage crisis, which is a bigger problem these days.

How to Get a Used Car Loan in the Philippines

Regardless of what the reasons are, the bottom line is the used auto loan rates in the Philippines are now within reach of almost everybody. You do not need to own a home. In fact, most of the people here are housewives or working people who still want the conveniences of an automobile. The country has an excellent infrastructure, and it is a great place to live in. It may just be that people are getting used to living with less, even if they have to pay a little more.

Getting a bank loan in the Philippines has been made easier because the government has a very low interest rate on its loans. Almost all bank accounts offer the lowest rate of interest imaginable. This is great news for the average citizen. They will not have to pay as much as they would in the US or Europe.

This is where the Filipino bank loan comes in.

But not all people can afford to buy a used car, especially since gas prices are at an all-time high. If you want to own an auto, you are going to have to go to a dealership. Even then, there is a chance that you will not like the one you pick up. The problem is that the dealer overcharges for the car, and the car turns out to be a disaster when it gets to the street.

How to Get a Used Car Loan in the Philippines

Bank loans are easy to obtain in the Philippines. A simple application will get you a check in a few days. If you want to finance a vehicle, you can head to your local bank and ask them for details on how to do so.

Most bank offices in the Philippines accept international credit cards, so even if you do not have a bank account with them, you can still get financing. Head to the nearest ATM and withdraw your cash. Be sure to get an auto insurance and car registration before you head to the bank. The more paperwork you fill up before you head to the bank, the more time it will take you to get your purchase approved. This will be a waste of time, money, and energy.