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THE AUTO Madness promo is being staged in many strategic shopping malls nationwide this month.

The country’s biggest auto loan provider is back again with its “Auto Madness Fever” this September.

Usually, the auto industry suffers from a slight dip in sales from the effects of the “ghost month,” where buyers put off major purchases like buying cars.

For the whole month of September though, BPI Family offers lower loan rates, a free one-year comprehensive insurance and a wide range of participating car models.

Within the confines of your home, visit BPI Family Bank’s interactive auto loan website at www.bpiautoloans.com or its Auto Madness promo online at www.bpiautomadness.com, and start shopping for the dream car you have been wanting to buy by computing for your best financing option among the various payment schemes to suit your budget.

BPI Family offers the convenience of loan applications via the Internet whether on a PC or laptop, and even on a Web-ready smartphone.  With online auto loan applications, families with qualified members working overseas have the task of finishing their application and buying a brand-new car at their fingertips.

Aside from this, the Auto Madness promo is also being staged in many strategic shopping malls nationwide this month.

Prospective car buyers and loan applicants can visit the Robinsons Mall in San Nicolas, Ilocos Norte; the Fairview Ayala Terraces in Quezon City; the Robinsons 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,  the Auto Madness will be held at the Centrio Mall in Cagayan de Oro City from Sept. 25 to 28.

“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,” shared Pepe Carlos, VP and head of BPI Family Auto Loans Division.

How to apply online

BPI Family offers three simple steps in applying for an auto loan. The first step  is to log on to its website and choose a car from its buyer’s guide section, which has a wealth of over 500 participating car models.

WHILE most car dealers have their preferred or accredited financial institutions that offer auto loans, it pays to shop around since interest rates can vary.

Once a choice has been made, compute for the monthly amortization by choosing how much downpayment you are willing to put up.

Lastly, fill out and submit the online application form to complete the process. In just a few hours, one can expect a reply from the bank on whether the loan application is successful or not.

Auto Loan Tips

Before getting an auto loan

There are several considerations in making sure you avail of the right auto loan and successfully purchase your dream car.

First, you need to make sure you choose the right car for you, get the best possible deal, and find the right balance between your equity and the 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 will properly manage your cashflow.

Managing your credit score and cashflow

While it is good to be absolutely debt-free, it is not also good if you do not have any credit references.  Having one or more credit cards is a good basis to start with.

If you pay your credit card on time and do not bother to pay in installments, it is a good indicator that you are credit-worthy.

Some banks will ask for documents like your pay slips, income tax returns, financial statements, bank account records and other sources of income to be able to see your financial capabilities.

But more than this, it is your diligence to pay your financial obligations on time that is being gauged here. So having some sort of paying habit track record can substantially help your lender gauge your credit worthiness.

Managing one’s cashflow seems easier said than done, especially when your spending dynamics change over the course of time.

This can mean having a growing family, inflation, additional household, even medical expenses and the like.

Responsible loan applicants would know that planning one’s expenses against income entails proper planning and personal financial and cashflow management.

Do not be attracted to long-term loans (five years or more) since the interest expenses will pile up over the course of the loan period.

You have to consider that you are buying a depreciable asset. This means that over time, the car you paid will be worth a lot less in value so chances are, your loan will be higher than the vehicle’s worth at some point if it is a long-term loan.

When shopping for auto loans, 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 it off.

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 it’s 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 have loan calculators that can give various options in real time.

Through BPI’s auto loan website, you can figure out exactly what your loans payments will be like computed on a variety pf downpayment options.

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 a 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.

Shopping around pays off

One often overlooks the fact that car buyers have the option to shop around, not just when choosing cars but for the best auto loan packages available. While most car dealers have their preferred or accredited financial institutions that offer auto loans, it pays to shop around since interest rates can vary and even at a small fraction, it could affect the total payment by a lot.

Be sure to ask for the APR (annual percentage rate), which is the effective rate of interest computed on an annual basis to determine if the loan rate is competitive and acceptable.

Also, be wary of dealers offering “zero interest” deals since these are often tied up to banks who have the interest charges built-in to the amortization payments.

In this case, ask for the net amount you will pay if you were to pay for the vehicle in cash. You should be able to work out the difference and figure out if it is a good deal or not.

As a rule of thumb, loans lasting over five years are not recommended due to the high amount of interest you will pay over time.

Some buyers may be disillusioned when thinking that they can actually buy a nicer car but cannot really afford it even with a lower monthly payment.

Terms of payment from one year to three years are usually recommended because the interest rates are lower.

The lender usually increases the interest rate if the loan term is longer since the value of the vehicle will have been more depreciated and there is a higher risk of losses in selling off the car in case of default.

One final thought

Make sure you do not miss your payments. Since loan payments are recurring each month, missing one payment will not only pile up but greatly hurt your credit standing.

This could eventually lead to having your vehicle repossessed if you miss more payments and are not ablt okeep up.

Some banks would offer automatic payment transfers that are linked up to your bank accounts. While this is convenient, just make sure that you monitor your bank statements regularly.

In case you suffer from a financial setback like a lost job or whatever reason so much so that 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.