Need Car Loans? Here’s How to Afford It

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Purchasing a car has never been this easy provided that you are employed and managing your own income. You can start picking out the latest car model of your favorite brand today if you wanted to. Unless you want to empty pockets and an empty bank account, most people prefer to secure car loans in the Philippines. This choice gives flexibility for anyone owning a car over a period of time because you have the choice of giving an initial down payment. Whether you choose it or not, the remaining amount can be financed and converted into instalments. However, the toughest part here is securing that car loan. Here are a few things you can do so that you can afford to pay for one.

Most of the local banks are able to offer you a car loan with easy and affordable terms. Securing car loans in the Philippines, especially from a bank should be a smooth process once you are able to comply with all the requirements. One of the first things they will look at is in your state of employment. When you are employed by a company and have been with them for quite some time, it’s easier for your car loan to be approved because the lender will know that you have a secured form of income to support the monthly mortgage. To be on the safe side, you should be earning an income of at least P30,000 or more. Anything less will make it difficult for you to manage a monthly mortgage that could become an additional burden on your end unless you have other forms of income to support that.

If you are not earning as much as P30,000 a month, this would probably be a good time to look at other forms of income that will be able to support your dream car. You can start to look for freelance work or part time jobs that can provide additional income to your current one. This will definitely boost your chances of securing that car loan. You will need some form of evidence such as a receipt or a certificate of employment that proves that you have another income. Once you are able to do so, these kinds of loans in the Philippines should be easy to obtain.

Many people choose to follow the basic rule upon purchasing a car. As a basic rule, you should be able to allot not more than 20% of your income that will go to your car. This is because the remaining will go to other personal and additional expenses. Don’t forget that aside from the purchase of the car, you also have to set aside for other expenses that come with it like car insurance, LTO registration, etc.

These are a few things that one should look at when dealing with loans in the Philippines. Always make sure that you are financially equipped before doing so; otherwise, you will submerge yourself in a pool of debt. It’s also important to gather a lot of information from all kinds of sources before making that final decision. Strive for your dream car and it will be all worth it once you are ready to own one.

Maricor Bunal has been a Project Manager and Content Writer for a long while. Her passion in writing is her main drive in crafting articles that are engaging, informative, and meaningful. Her partnership with Loan Solutions PH has given her a whole new opportunity to take writing to a whole new level.

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