Used Car Loan: How to get Approved- the Ultimate Guide
One day, you were in the midst of canvassing for an auto and you happen to stumble upon a great deal for a used one. Great! Now comes the tricky part of paying for it. You look through your options and decided it would be better to buy the car using a used car loan.
Luckily, Philippine banks are more than willing to lend you money, as long as they can be reasonably assured they'll get their money back. Read more, to know more about the used auto loan process.
Note: Most cars in Automart.Ph are available for installment. You can apply for an autoloan after winning the bidding or auction for the car or vehicle in question. Automart will be there to guide you through the entire process so you don't have to worry about a thing!
Financing from Automart.Ph's partners at RFC
Established in 1935 as a humble radio repair shop, Radiowealth Finance Corporation has since grown into a major player in providing financial help for all Filipinos. And this includes financing or installment methods to help you purchase your dream car from us!
Is application for RFC financing free?
Yes, there is no application fee for online submissions.
Who is eligible for financing?
Before you prepare your ID's, RFC has basic eligibility guidelines for applicants, We have them here for you!
- Applicants must be Filipino citizens of at least eighteen years of age with good character and reputation.
- Residency of at least two years at their current address except in the case of a new home owner.
- A source of income. If employed, you should have been connected with your current employer for at least two years with a minimum basic monthly salary of P18,000. If you are a professional or self-employed, you should have been in the same profession or the same business for at least three (3) years, and your business should have been operational for at least two (2) continuous years with profitable operations.
What are the requirements for financing?
The requirements are very similar to the usual loan information. Here is the list:
- 2 valid government ID’s (if employed, please include company ID)
- Proof of Billing
- Proof of Income (3-month payslip)
- Residential, Business, or Employment Address Map
- Certificate of Employment
- Barangay/Business/DTI Permit (for business owners)
How long does it take to process my application?
It's possible to get approved in just 12 days if your requirements are complete. This might be faster than traditional financial institutions.
What are the terms of the installment?
1.5% per month, 30% downpayment and a max of 36 months to pay.
Is there a minimum or maximum amount for financing?
Yes, the unit must be priced at least P300,000 to be eligible for financing.
How to get a loan from the bank
In a nutshell, the bank is really just interested in some information about you, before they approve your used car auto loan. This is partly government regulated by the Bangko Sentral ng Pilipinas or BSP, and mostly for the bank's safety and due diligence. They want to:
- Find out who you are and your contact information, including your address.
- Make sure you have the capacity to pay them back for the car.
- Make sure you're using the funds and the car for things that are above-board.
It seems like a lot of paperwork and documents, but it's really easy and necessary. Though it may take a while, you are also assured that the bank will help you through the entire process.
What are the requirements for a used car loan?
It partly depends on whether you're taking the used auto loan as a business or as an individual. Here are the requirements based on Eastwest Bank's. Most other banks have very similar requirements too.
- Between 21 and 70 years old at the end of the loan term
- Gross family income of P40,000/ mo minimum
- Stable source of income from employment or business.
- Completely filled-up application form
- Employment Certificate / 3 Months Bank Statement
- Valid Government Issued ID
- Completely filled-up application form
- SEC Registration
- Articles of Incorporation
- Latest GIS
- Latest ITR
- Latest Bank Statements for 3 months
- Comparative AFS
What is a good interest rate on a car loan?
Banks have different interest rates depending on the loan term you prefer–the longer the loan, the higher the interest. Here are the rates for some Key Bank Partners that we have:
- 12 Months - 7.19%
- 24 Months - 16.37%
- 36 Months - 25.68%
- 48 Months - 36.04%
- 12 Months - Not Available
- 24 Months - 14.11%
- 36 Months - 22.52%
- 48 Months - 30.06%
How much is the downpayment on a car loan?
Banks typically require a minimum of 30% for downpayment and a max term of four years.
Further, depending on the bank, some have minimum prices for cars that can be loaned for. As an example, Eastwest Auto loans department will only give you a loan if the car you're buying has a starting price of at least P300,000 and above.
Automart.Ph will gladly give you an Auto Loan Computation or estimate for the cars that you are interested in buying. Get in touch with us and ask for a computation!
How long does it take for a used auto loan to be approved?
Once you win the vehicle, we'll give you the forms and help you apply and get approved for the loans. Loan application time frame ranges from 2 weeks to 3 months. Unfortunately, we don't have direct control over how long this process will take.
Ready to buy your car? Simply call or message us now, or chat with us on our website so we can help you!