Introducing: The Ultimate Guide to Financing a Used Car in the Philippines
Manila, Philippines | 18 January 2024 - Kumusta, Filipino car enthusiasts! Dreaming of driving a second-hand Toyota, Honda, or Mitsubishi? Whether it's a family-friendly Innova or a sporty Civic, understanding your financing options is key.
While finding your dream used car sparks joy, unraveling the financing options can feel like cracking a secret code. Terms like "down-payment", confusing monthly fees, and the sea of paperwork leaving you a little disoriented? Fear not! This friendly guide will deep dive into the various ways you can finance your used car purchase in the Philippines, highlighting payment methods and essential documentation for loans and cash buyers.
The Diverse Financing Options for Your Used Car
Bank Loans: Major banks like PS Bank, BPI, and Maybank offer competitive rates for used car loans. Look out for pre-approval options to better negotiate at the dealership, especially for sought-after models like the Toyota Fortuner or Honda CR-V.
Dealership Financing: Many dealerships collaborate with financial institutions to provide convenient financing solutions. While this can simplify the process, always compare rates to find the best offer.
Credit Union Loans: For those part of a credit union, you might access lower rates and flexible terms, a boon for financing popular models like the Nissan Almera.
Personal Loans: For older models, such as a classic Mitsubishi Montero, a personal loan can be a viable option, especially when traditional car financing is limited.
Online Lenders: For buyers seeking efficiency and speed in their transactions, they may explore JACCS and Chailease who are among the online lenders offering quick and less stringent loan approvals.
Exploring Payment Options Beyond Loans
Cash Payment: The fastest approach. Always ensure you receive proper documentation for the transaction.
Installment Plans: Direct installment plans from sellers can be an option, particularly for high-demand models like the Ford Ranger or Isuzu D-Max. Make sure you understand and can manage the terms.
Leasing: While not as common, leasing a used car is another alternative, offering potentially lower monthly outgoings compared to outright purchase.
Essential Documents for Financing
For loan buyers, the requirements can be categorised by your employment type:
Employed
2 Valid Government-issued ID’s (Including Company ID)
Payslip dated within 3 months
Certificate of Employment (COE)
Proof of Billing dated within 3 months
Bank Payroll dated within 3 months
Self-Employed
2 Valid Government-issued ID’s
Department and Trade Industry (DTI) Business Registration
Barangay Permit or Mayor’s Permit
Proof of Billing dated within 3 months
Bank Statement dated within 3 months
OFW or Seaman
2 Valid Government-issued ID’s
Proof of Remittance/Allotment dated within 3 months
Bank Statement dated within 3 months
Proof of Billing dated within 3 months
Marriage Contract (if married)
Latest Contract and Passport (OFW/Seaman)
For cash buyers, the requirement is straightforward as you only need to provide a valid Government-issued ID.
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End Note
Paying for your used car in the Philippines is a journey filled with options. With the right documents and a clear understanding of your payment choices, you’re all set for an exciting ride. Paalam and best of luck in your car-buying adventure!
Interested in loan financing? Learn more about CARSOME's Financing Collaboration with JACCS this January 2024.
