Auto Loan Philippines | Car Loan Philippines
Car loan Philippines
We are committed in guiding you from processing to fulfillment of your car loan in the Philippines. To start off, here are some insights to help you decide whether to go for a short-term or long-term auto loan.
The following are listed types and descriptions of car loan terms normally available when purchasing a new or used car in the Philiippines:
SHORT TERM AUTO LOANS are car loans in the Philippines made for the purchase of a new or used car and have payment terms of 12 months (1 year) up to 36 months (3 years). These types of loans are designed to help a consumer quickly pay off a loan obligation for a new or used car purchase. However, the payment amounts of shorter term loans can be somewhat high or burdensome for some. This generally offer lower interest rates than do longer term loans, thus, people with bad credit may be required to use shorter term loans in order to approved by certain auto loan lenders. Interest rates can be somewhat higher than normal as people with bad credit can sometimes be expected to”buy back their auto credit”. Short term loans enable a person with bad or poor credit, to re-establish his or her credit history.
Advantages of short-term Car loan Philippines:
- Quick Pay off of a car loan obligation
- Increased trade in value after the completion of the car loan
- Much lower interest payments and lower overall cost of ownership
- High or expensive individual monthly payments
- May require additional sacrifices to afford higher monthly payments
- May be difficult to sustain if the customer loses a job or income
LONG TERM AUTO LOANS are usually car loans that have payment terms longer than 60 months (5 years). Longer duration auto loans in the Philippines are designed to allow customers to make smaller, more affordable monthly payments on a car or truck. While the individual monthly payment amounts are much lower with long term auto loans, the amount of interest paid over the life of the loan increases dramatically. The increased accrued and paid interest can substantially increase the overall cost of ownership with new or used car or truck.
Advantages of short-term Auto loan Philippines:
- Smaller and more affordable monthly payments
- Frees up money for other obligations and expenses
- May be able to be sustained if a customer loses a job or income
- Car or truck may be little, or significantly reduced, trade-in value at the end of the auto loan term
- Substantial increase in amount of interest paid and accrued
- Increased overall cost of ownership.