How to Apply and Process Used Car Financing
Being in the car financing industry in the Philippines for more than 16 years, Auto Loan Ph have assisted hundreds of clients looking to buy a used car. There are even times when the unit to finance by a loan borrower is a second hand truck. Let me reiterate that either which you may be interested to apply with our help here at Auto Loan Ph - OR CR Sangla, the same process applies. The same requirements also apply except for special cases where the party interested to buy a vehicle is a company or corporate entity. In this case, it may be necessary to provide additional corporate documents such as GIS or SEC Registration and a corporate account bank statement plus a few signatory key people from the enlisted corporate investors. Another important issue here is the need for a secretary certificate allowing the person or entity to apply for vehicle financing on behalf of the company. Documents needed are the same for both individual and corporate applicants.
If the other party is truly serious in pursuing to process car financing, I strongly suggest that do provide complete documents to have a smooth loan approval process and to avoid delays. Our experience with corporate accounts span as long as 10 years of FREE assistance and consultation. With this on hand, we'd like to inform you that additional documents may be necessary to be provided by the lendee. Also, the documents and application will have to undergo strict scrutiny by at least 4 different departments of the lending company provider. This being said, the loan borrower needs to take extra patience all the time. There may be times when a key people from the lending company may ask the same pertinent questions or a repeat document which the applicant may have already submitted. The purpose of this is to test the patience of the applicant and the willingness to commit to the smooth processing of an loan approval.
If you are an individual applicant, it may be a lot easier for you to get an approval of your vehicle financing application. Just another reminder though that whether you are buying a car or truck, you will need to go through the same process. Truck financing on the other hand requires that the applicant must have a 1 year minimum established trucking-related business with latest projects or contract and will be required to submit business references for confirmation purposes. Individuals need not bother about these issues but a very convincing capacity to pay or income source is necessary to support the paying ability of a loan borrower. In case the applicant had very low to minimal income, the solution is to provide a co-maker/co-borrower immediate family member or relative to increase capacity to pay for the loan. If this requirement is not met, this may result the possibility of getting the application approved with very minimal financiable amount, worse, you may be declined of your application.
As of the writing of this article, there is only one bank that we know would allow processing 2nd hand vehicle financing.This is AMA Bank. Other players may sell repossessed cars but on a cash basis only and will not allow used car financing.
Since there is only 1 bank we have revealed competing with private lenders in the car financing arena, it is a no brainer which option is the best. We also know that banks process from fastest possible approval of 2 weeks and may take 1 month or even longer by our own experience. The only advantage with applying in a bank is the low interest rate. Overall, if you are to ask me, I'd still prefer to process my loan with a private lender or private financing company. For those who are very particular with interest rates, it is advisable to move away and process with a bank.
As mentioned above, it is far more better to process your vehicle financing application with banks versus any private lending company. The reason behind is obvious - lower interest rate. While banks may offer as low as 1% monthly interest, private lenders can only give you as low as 1.25% on average low and up to as high as 3%. An important consideration though is to make sure to buy only 5 year old vehicles and not older than that. Beyond 5 years, the interest rate may drastically be unfavorable to they buyer. It could even make you think of buying a brand new car when you opt in to ask for a FREE quotation to see how much your monthly amortization will turn out to be.
Please note that there is a slightly different list of requirements for individual and corporate applicants. Please refer to the information above for corporate accounts. A slightly longer process may take place for corporations. Applicant will be required to provide or pay vehicle dealer or seller at least 20%-30% cash based from the selling price. Better yet, ask first for a quotation. It's FREE! You can ask for this in our affiliate - ORCR Loan.
By now, you might have done everything you need to do and know what need to be studied in order to make the process of fiancing your first second hand vehicle fast. If I may suggest, please visit our Application Form to fill up our form. You may also Contact Us - 8542-8105 (PLDT Landline) / 0917-1332994 or 0917-5019245 (Globe and Viber) / 0939-9269335 (Smart) / 0932-8725532 (Sun)