Don’t be a loan stranger when it comes to buying cars

From left, BPI Family VP for product loans division Noel Altamirano, BPI Family VP auto loans division Felipe “Pepe” Carlos and BPI Family Savings Banks Auto Loan senior brand manager Juan Miguel “Jam” Santiano

MANILA, Philippines–BPI Family Savings Bank, the country’s biggest auto loan provider, is back again with its “Auto Madness Fever” this September. During this promo period, BPI Family is offering lower loan rates, a free one-year comprehensive insurance, and a wide range of participating car models.

This month, the BPI Auto Madness promo mall tour is going to be held in strategic shopping malls nationwide. Prospective car buyers and loan applicants can visit the Robinson’s Mall in San Nicholas, Ilocos Norte; the Fairview Ayala Terraces in Quezon City; the Robinson’s Mall in Bacolod City; and the Ayala Center Cebu in Cebu City from Sept. 11 to 14. For those residing down south of the country, they can catch the Auto Madness at the Centrio Mall in Cagayan de Oro City from Sept. 25 to 28. The promo is also available through online applications or in any BPI Family Savings Bank branches or outlets serving auto loan applications.

By staging the campaigns on malls and auto shows, it offers the convenience of presenting various car brands and models while the customer chooses the different payment and financing options with BPI Family.

For those prospective buyers and loan applicants who are out-of-the-country or based in distant locations, or simply very busy to visit the event locations, simply check out the bank’s website which has a comprehensive car buyer’s guide complete with car specifications and updated prices. Just go online and check BPI Family Bank’s interactive auto loan at www.bpiautoloans.com or Auto Madness promo at www.bpiautomadness.com to look out for the dream car of their choice and compute for the best financing option among the various payment schemes to suit the budget. BPI Family offers the convenience of loan applications online, whether via PC or laptop or even a web-ready smart phone. With online applications, families with qualified members working overseas can buying a brand-new car is at their fingertips.

“With the success of the previous Auto Madness events, we are bringing back the Auto Madness this September to make the best happen for Filipinos planning to buy their brand new car. Our growing economy has been a driver for the growing demand for automobiles nationwide thus we would like to make it easier more accessible to Filipino car lovers and buyers. On top of the low rates, we also offer exclusive perks to our clients like the free comprehensive car insurance,” said Felipe “Pepe” Carlos, VP and Head of BPI Family Auto Loans Division.

BPI Family offers a few simple steps in applying for an auto loan. First is to log on to its website, and choose a car from its buyer’s guide section with a wealth of over 500 available car models to choose from. Once a choice has been made, compute for the monthly amortization by choosing how much downpayment you are willing to put up. Lastly, fill up and submit the online application form to complete the process. One can expect a quick reply from the bank.

While there are several considerations in making sure you avail of the right auto loan and successfully purchase your dream car, you need to make sure you choose the right car for you, you need to find the right balance between your equity (downpayment) and amount to be financed. It is prudent to first look into how you will finance your car purchase before actually going out to shop for a new car. By doing some research, you would be able to come up with a package that will be suitable for your lifestyle and properly manage your cashflow.

Whether it is a brand-new car or commercial truck or even a second-hand vehicle, BPI Family Auto Loans can offer as low as downpayment of 20 percent of the loan value for brand-new cars and as low as 30 percent for a brand-new truck or second-hand vehicle. For brand-new cars, terms of payment can stretch for as long as six years and up to five years for second-hand vehicles. For new trucks, the terms of payment can be as long as three years.

For second-hand cars, it should not be over five years old, while new cars can be locally and officially distributed brands or imported with the correct customs duties and taxes properly paid. Second-hand cars will be assessed by the bank’s authorized appraisers. The loanable value will be based on the assessed value by the bank less the downpayment, not based on the asking price of the seller of the car.

When shopping for the right auto loan package for you, make sure to check the terms of your auto loan which will determine how much you pay now and how much the auto loan costs overall by the time you finish paying off the loan. Choosing a more expensive car because of the low downpayment required increases the total cost of your auto loan and usually has an “upside down” effect (meaning you owe more on the vehicle than its worth) for years to come. It does not mean that a low downpayment is the answer to choosing a car that is beyond your paying capacity. You still need to compute the monthly amortization and how much total you will spend for it. Make sure you have enough buffer income for emergencies on top of paying off your usual expenses.

Some banks have very user-friendly websites that can offer loan calculators that can give you various options in real time like BPI’s auto loan website. You can figure out exactly what your loans payments will be like and compute the various options by selecting the various downpayment options available. Aside from the loan payments and initial downpayments, you have to check what other fees you need to pay like how much you have to pay for insurance and the one-time chattel mortgage fee banks charge for obtaining a loan. Make sure you have car insurance so in the event the vehicle is stolen or damaged, you are still covered. Remember, you are still responsible for paying off your loan even if you suffer a total loss in the event of a bad accident or if the car gets stolen.

Since loan payments are recurring each month, missing a payment will not only pile up but greatly hurt credit standing. This could eventually lead to having a vehicle repossessed if more payments are missed. Some banks like BPI would offer automatic payment transfers that are linked up to your bank accounts. While this is convenient, just make your that you monitor your bank statements regularly.

Once the loan is approved and all the paperwork is done and the car has been released, it is important to note that the monthly payments should be diligently made to avoid complications and running behind amortization payments. Managing one’s cashflow seems easier said than done, especially when your spending dynamics change over the course of time. These can mean from having a growing family, inflation, additional household to even medical expenses, and the like.

Responsible loan applicants would know planning one’s expenses against income entails proper planning and personal financial and cashflow management. In case you suffer from a financial setback like a loss of job or for whatever reason you cannot keep up with your payments, make sure you contact your lender right away and try to work out a revised payment plan. It is always good to be upfront about your financial situation rather than to hide it, so you can have the chance to negotiate for a softer payment scheme until you get back on your feet.