BPI Auto Loans is MIAS major presentor
THIS coming April, BPI Family Savings Bank, the country's biggest auto loan provider, will once again be the auto loan partner and major presentor of the 2015 Manila International Auto Show.
BPI Family Auto Loan provides car buyers access to online loan applications 24/7, making it the convenient and affordable loan channel for one to own a dream car.
For those prospective buyers and loan applicants who are out-of-the-country or based in distant locations, or simply too busy to physically visit the event locations, one can simply check out the bank's website which has a comprehensive car buyer's guide complete with car specifications and updated prices.
The BPI Family Bank's interactive auto loan website can be access through www.bpiautoloans.com. You can immediately start shopping for the dream car of your choice and compute for the best financing option among the various payment schemes to suit the budget.
BPI Family offers the convenience of loan applications via online whether on a desktop PC or laptop or even on a web-ready smart phone. With online auto loan applications, families with qualified family members working overseas can just finish their application online and buy a brand new car at their fingertips.
BPI Family offers a few simple steps in applying for an auto loan. First, log on to its website. Then, choose a car from the buyer's guide section which contains hundreds of available car models to choose from. Once a choice has been made, compute for the monthly amortization by choosing how much downpayment one is willing to put up. Lastly, fill up and submit the online application form to complete the process.
One can expect a reply from the bank in just a few hours whether the loan application is successful or not.
Be a responsible borrower
While there are several considerations in making sure you avail of the right auto loan to successfully purchase your dream car, you need to make sure you choose the right car as well as find the right balance between your equity (downpayment) and amount to be financed.
It is prudent to first look into how you will finance your car purchase before actually going out to shop for a new car. By doing some research, you should be able to come up with a package that suits your lifestyle and fits your cashflow.
Whether it is a brand new car or commercial truck, or even a second hand vehicle, BPI Family Auto Loans offers low downpayment terms. You can pay as low as 20 percent of the loan value for brand new cars and as low as 30 percent for a brand new truck or second hand vehicle.
For brand new cars, terms of payment can stretch for as long as six years; and up to five years for second hand vehicles. For new trucks, the terms of payment can be as long as three years.
Second hand cars should not be over 5 years old, while new cars can be a locally and officially distributed car brand or an imported vehicle with the correct customs duties and taxes properly paid.
Second hand cars will be properly assessed and appraised by the bank's authorized appraisers. The loanable value will be based on the assessed value by the bank less the downpayment, not based on the asking price of the seller of the car.
When shopping for the right auto loan package, make sure to check the terms of your auto loan which will determine how much you pay now and how much the auto loan costs overall by the time you finish paying off the loan.
Choosing a more expensive car because of the low downpayment required increases the total cost of your auto loan, and usually has an "upside-down" effect (meaning you owe more on the vehicle than it's worth) for years to come. It does not mean that a low downpayment is the answer to choosing a car that is beyond your paying capacity. You still need to compute the monthly amortization and how much total you will spend for it.
Make sure you have enough buffer income for emergencies on top of paying off your usual expenses.
Some banks, like BPI's auto loan website, have very user friendly websites that can offer loan calculators that can give various options in real time. You can figure out exactly what your loans payments will be like and compute the various options by selecting the many downpayment options available.
Aside from the loan payments and initial downpayments, you have to check what other fees you need to pay, i.e., annual insurance and the one-time chattel mortgage fee that banks charge for obtaining a loan.
Make sure you have car insurance so in the event the vehicle is stolen or damaged, you are still covered. Remember, you are still responsible for paying off your loan even if you suffer a total loss in the event of a bad accident or if the car gets stolen.
Since loan payments recur every month, missing one payment will not only pile up but greatly hurt your credit standing. This could eventually lead to having your vehicle repossessed if you miss more payments. Some banks, like BPI, offer automatic payment transfers that are linked to your bank accounts. While this is convenient, just make your that you monitor your bank statements regularly.
Plan for rainy days to happen
Once the loan is approved and all the paperwork is done and the car has been released, it is important to note that the monthly payments should be diligently made to avoid complications that come with running behind amortization payments.
Managing one's cashflow seems easier said than done, specially when your spending dynamics change over the course of time. Factor in the cost of having a growing family, inflation, additional household-even medical expenses, and the like.
Responsible loan applicants know that planning one's ex-