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10 Dos in Car Loan Financing – Car Takeout Buyout in Banks and Private Credit Companies
In the Philippines, car loan is slowly but surely becoming a very popular offer for borrowers who need quick cash at the highest possible loanable amount and appraisal. To arrive at such a target, there are certain do’s and don’ts and as a professional Pinoy loan consultant, I would like to sort of chronicle and reveal these techniques so I can help you get the biggest loan possible in exchange of using your auto as collateral regardless of what type of vehicle you are using to pawn in exchange of cash loan. I’d like to call this my 10 dos in car loan financing. Take note that this is not the regular car loan wherein you will use a fully owned auto to borrow money from a lending company. This could be a bank or a private lending firm.
What is the Difference Between Car Loan and Car Financing?
A car loan is the type of collateral loan that uses an auto to pawn to any lending company in exchange of cash. In this case, the OR CR to be used should be under the name of the borrower and there is no notation of encumbrancy from any other lending firm or bank financing.
A car loan takeout or buyout on the other hand is almost the same as the regular car collateral loan. The only difference here is that you do not really fully own the vehicle and you are still on the process of paying the monthly amortizations as part of the mortgage agreement with either a bank or private financing. Take note that for most lending companies that allow car takeout loan, you cannot qualify unless you meet certain standards like – you must have paid at least 70%-80% of the full amount mortgaged including the initial down payment you made upon availing for a car loan financing.
10 Do’s in Car Loan Financing
- Do ask for an advice from a professional loan consultant and make sure his or her services are free and you won’t get charged with broker’s fee or agent’s fee in your loan proceeds.
- Do prepare all necessary documents and complete basic requirements and have them photocopied prior to reporting for application to the lending company.
- Do make available your co-borrower or co-maker in case you don’t have enough stable source of income to present tothe lending company. All lending companies require a co-borrower and your best option to use is your nearest relative with regular source of income either via work, remittance, business or contract of lease if have property for rent.
- Do make sure you qualify for the pre-qualifying requirements so no time is wasted applying for a loan that you are not qualified in the first place.
- Do set a certain loanable amount you need based from your statement of account from the original financing firm.
- Do make sure that your car is not in the condition or state or process of being re-possessed by the bank or the financing firm. Lending companies that allow car takeout loan does not allow cars financed that have delinquent unpaid balances and is already in the legal department for impounding or foreclosure.
- Do make sure you ask for a reasonable amount which you can pay at a staggered monthly affordable rate and interest combined.
- Do make sure the charges incurred are clear to you before signing the contract of taking out your financed car.
- Do make sure all possible options are laid on you by the refinancing firm from interest rates, charges, loan term options and monthly amortization is presented in full.
- Do listen while your car refinancing or takeout application is approved and your terms are presented to you before signing. Be careful not knowing how checking accounts work. This is where most borrowers end up in bad credit and make sure to ask about funding of your checking account as well as hold-order and penalties just in case you fail to produce the money to pay for your monthly amortization.
For more options for cash loans in the Philippines, please visit here – http://www.cashloansphilippines.com/.