Having a dream car is an aspiration that many wish to come true at an early stage, it is possible only if one organized. There are many vehicles available at different prices that you can’t miss one that suit your needs. Having finalized on the type, model, and dreams of having a car, the next step is financing it. For many young professionals, driving is one of the most significant investments since their earnings might still be relatively low; therefore taking a loan to finance the project remains the best option. There might be money, but driving is not the only option that needs spending of a mature youth, there are so many bills to make, and in some maybe a family to feed. All these make car loan the ultimate way to drive for many since it allows monthly or annual payments rather than the one-time payment of the full amount. Below are five easy steps to getting a car loan.
1. Check credit eligibility
To show that you are a responsible professional borrower, the first step is to make sure you meet the bank eligibility criterion. The most pronounced bank basic requirements include, but not limited to, a person aged 21 years or above, country citizen, but foreign residence should have qualified country co-borrower, monthly income between PHP 30000 and 50000, and two years being in formal employment or profitable business operation.
2. Calculate the amount you can borrow
After knowing the credit score, next is to know the amount you can afford to pay monthly without any pressure. This is because you are expected to pay the loan for the next three years or so and other accompanying expenses such as fuel, insurance, and maintenance, which is a deduction from your earnings and failure to pay might lead to the bank taking away your car. Only go for what matches your budget. The key factors that have a significant impact on your car loan amount include type and vehicle price, loan repayment period, and down payment.
3. Apply for the loan
Just before the application, compare car loans from various institutions, then select one that provides a good deal in relation to your budget and go for it. The goodness is that you can obtain title loan while still making payments. During the application, loaning institutions demand from borrowers supporting documents such as valid IDs issued by the government, payslip, and business permit, among others. Make sure you have them all and provide them when asked.
4. Wait for approval
Patience is required here for loan processing, although currently most loaning institutions take only 1 or 2 business days to process and decide on your automobile loan. If the loan is approved, the bank will still need you to fulfill some prerequisite. These include the signing of the loan documents, obtaining a car insurance policy, submission of any additional materials, and making of down payment. There are two approaches to have car insurance, one is through the bank, and the other is through an online broker.
5. Book the car
If the loan is approved and the post activities went successfully, the only thing between you and possessing the car is booking. Visit the dealer, book the preferred vehicle, and after that, the bank will deposit the money to your account to complete the payment. From there, you can drive your dream car as happy as you head home.
In conclusion, if you can follow the above guide correctly, there are high chances that you will get the loan. Caution, as your car is under a loan, insure it, ensure regular maintenance as well as safe driving to minimize extra expenses.
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