Own a Car through a Loan Program

Is owning a car listed in your 2009 planner? If you believe you are ready to own one but is a little short on budget, financing assistance may be all you need. Add a bit strategy to your action plan in order to achieve the noble objective. It wouldn’t hurt at all to try first-rate loan services for the idea to materialize.

The Auto Loans Department of AMA Bank provides refinancing services to local and overseas employees, business owners and corporations for as low as .50% monthly interest rate. Now, the question mark falls on the why’s, how’s and few what’s of things. Read on as Roel Galang, Marketing Officer of AMA Bank’s Auto Loans Department, provides a comprehensive guide on how to own a car through a loan program:

How much money do I need to start with the loan program?

You will need at least P50,000 from your own pocket as a down payment. You can then loan another P50,000 from AMA Bank to be able to purchase a P100,000-worth 1994 model, secondhand car. Or to avail a brand new vehicle like Toyota Vios or Honda City, you must have at least P150,000 for the down payment and mortgage fee.

Post-dated checks are required for the monthly amortization. To understand the credit ratio, the monthly amortization is 30 percent of the borrower’s monthly net salary. For instance, if you earn P35,000 to P40,000 a month, you can avail the loan services with P10,000 worth of monthly amortization.

The modes of payment vary on the status and model of the car to be refinanced. The down payment for a brand new car is 20 to 30 percent with maximum terms of 48 months and minimum of 3 years; forty percent for secondhand cars with specific bracketing indicators. For instance, a 1994 model will require you 18 months to pay while a 2004 model will allow you 3 years to settle your balance. Insurance is also covered and with four months to pay after signing of loan documents.

How do I get to choose a car?

AMA Bank finances brand new cars mainly from Nissan, Toyota and Honda. You can choose the car to purchase but you may also seek advice from the marketing officers of AMA Bank on which brand has a high market value or consumes less gasoline.

BMW and Mercedes Benz are the most expensive cars that can be possibly loaned from the program. On the other hand, the least expensive car that will be accepted must be worth P100,000, and anything that goes below is considered undervalue. Examples of this car are the ‘94 model Toyota Corolla and ‘95 model Nissan Super Saloon automatic.

How fast is the car loan processing in AMA Bank?

If it is within Metro Manila, you will have to wait four to five days for it to be approved. The whole processing period from the time of application will count 45 banking days excluding Saturdays and Sundays.

Once your loan has been approved, you have to forward the OR/CR or the original certificate of registration and the official receipt of the registration to the Marketing Officer-in-charge. After that, you will sign the loan documents and issue a post-dated check. The Marketing Officer will then process the check. This will signal the availment of the loan. You will start paying the debt after 40 daysupon signing of loan documents.

What if I fail to pay the loan on time?

Problems in terms of collections are quite unavoidable especially when a client suddenly loses a job or business. It is clearly stated in the promissory note that once you fail to pay back the bank, the car will be repossessed. As Roel puts it: “mababaon ‘yung sasakyan”. They wouldn’t be able to claim their registration copies unless they fully settle their loans. Sad to say, AMA Bank doesn’t provide extensions or “tawad” since in a bank’s point of view collections are always expected especially in a lending business. Funds must keep spinning so that new borrowers will always be accommodated. Failure to pay on time will lead to penalties and more cost of money.

AMA Bank has been in the business for 54 years with10 branches nationwide, with the car loan program being added to the list of its banking and finance services in 2001. Myka Santiago

To avail the fastest car loan services, contact AMA Bank here.