Alternative to Auto Loans ~ Pinoy Reviews

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Friday, June 13, 2008

Alternative to Auto Loans

If you can’t get yourself approved for any of the Auto Loans offered by major banks why not try instead to apply for a personal loan? Banks such as Banco De Oro and HSBC are already offering personal loans and there’s really not that much requirements. Of course, your monthly income still needs to cover your monthly amortization so you need to present your pay slip or income tax return if you’re self-employed. To get an idea how much monthly amortization that you have to pay, try using any of the onlineAuto Loan Calculator or just a plain loan calculator.

The highest amount that some of the banks are lending is around P500,000. If you only want a car costing around P300,000-P350,000 but be warned that personal loans have a more stringent approval process since it’s basically unsecured rather than auto loans. With auto loans, the security is the car that you will buy and most banks would take out a chattel mortgage of the car in favor of themselves.

Though I think it would probably be best if you should just wait for the world oil prices to ease up a bit before investing or rather throw away your money on a gas guzzler.