Best Auto Loan Philippines: Factors To Consider

Best Auto Loan Philippines: Factors To Consider

July 20, 2022 0 By onroadtips

Introduction

A good car can sometimes cost quite a lot; those on a low budget can also consider an auto loan as an option. Stay tuned for more detailed information about the best auto loan Philippines!

What Factors Influence Auto Loans You Need To Consider?

You might discover various factors that can affect auto loans depending on a range of elements, such as:

Loan term: Interest rates are often low for shorter periods. If you want a loan with a short duration and a cheaper price overall, think about paying more each month.

Credit score: A high credit score can lower your interest rate, which is why this is a crucial element you need to notice. 

Credit report: Because lenders consider the whole credit record, two borrowers with identical scores may find varying rates depending on how their scores were determined.

Down payment: Paying a big amount of down payment can also help reduce the loan amount and demonstrates your commitment to buying the car, which may result in a lower interest rate.

Income: To confirm qualification, some lenders might ask for a minimum income from the borrower. 

Interview process: Like any interview, you must make a good impression on others to make your process go smoothly and have the best auto loan rates.

Autopay: You can have your payment automatically made from a checking account to get more chances to get reductions or discounts from lenders.

Negotiation: In the interviewing process, negotiation is always a good choice. When you receive many preapproval proposals, you can take advantage of those in your discussions with lenders about interest rates.

Top 5 Lowest Interest Rates Loan Providers In the Philippines

After some market research, we concluded that there are five providers of the best auto loans for used cars or new cars: PenFed Credit Union, myAutoloan.com, Consumers Credit Union, LightStream, and Bank of America.

 You can continue reading to find the best auto loan in the Philippines.

PenFed Credit Union

New Car Rate: 2.09%

Used Car Rate: 3.29%

PenFed Credit Union provides one of the best average annual rates among other loan companies and credit unions. 

Some can even get the rate of 2.09 percent; however, it might be difficult and only available for those who buy a car for three years with the PenFed car buying service. 

The reason behind this low rate is that PenFed collaborates with TrueCar to provide more benefits for buyers. You also need to deposit 5$ to be a member of PenFed Credit Union to get the loan from them.

MyAutoloan.com

New Car Rate: 2.24%

Used Car Rate: 2.49%

myAutoloan received lots of positive feedback from customers and offered reasonable rates, which is why it is a suitable option. 

It can support a wide range of credit scores and the ease with which customers can compare rival loan offers from different lenders. Moreover, the rate for used cars is also the lowest among the five suggestions.

>>> Suggested for you: 7 Car Buying Tips 2022 You Should Know

Consumers Credit Union

New Car Rate: 2.74%

Used Car Rate: 2.99%

An excellent choice for auto loans with low-interest rates is Consumers Credit Union. What you need to do is to pay 5$ and will be eligible to be a member of the organization. 

Consumers Credit Union offers auto loan packages for those with good to exceptional credit or scores of at least 600. This provider also collaborates with TrueCar to assist buyers in finding autos across the nation. 

One distinction is that the interest rate will remain the same regardless of their shopping option, Truecar, or other places.

LightStream

New Car Rate: 3.99%

Used Car Rate: 3.99%

LightStream is a part of Trust Bank with the same rate of 3.99% for both used and new car loans. With an excellent credit score, you are eligible to apply for loans of all categories from LightStream.

Auto loans give borrowers a wide range of possibilities because there are no limitations on the year or usage of the loaned car. 

Bank of America

New Car Rate: 3.69%

Used Rate: 3.89%

For customers with great credit, Bank of America provides a new automobile loan of 3.69 percent and 3.89 percent for used cars.

Members of the Bank of America, Preferred Rewards program may also receive a reduction of up to 0.5 percent on interest rates. You don’t have to restrict your possibilities because Bank of America collaborates with a wide range of dealerships around the country.

Conclusion

Having a car is super convenient, but not anyone can purchase one. Therefore, people with limited funds can think about taking out an auto loan. Please read this post as it is dedicated to answering all your questions about the best auto loan Philippines.

Thank you for reading! Also, you might read our writing of any other article like this on Buying. If you have any question, feel free to contact with Onroadtips.com.