Buying a car thru bank car loan

I spent weeks looking for raw information on how to buy a car thru car loan. There's always a first time on everything, and this would be my first time to buy a brand new car thru car loan. I find it awkward asking the bank or the agent on the process, so I decided to make a research to save my ass from embarrassment. However, I failed to do so. I can't find a blog or an article for the process.

Anyway, I went to the bank and did inquire on the application process. They instantly gave me an application form which needs to be filled out with personal information including your financial income and the type of car you plan to purchase. There are also requirements that you need to submit to the bank such as your ITR, business permit (for self employed), COE (certificate of employment), bank statement and financial statement. After giving all of the necessary requirements, they will conduct a credit investigation (CI). After approximately three (3) days, you will receive a call from the bank whether your application is approved or not.

If you're lucky to have an approval, prepare the 20% down payment which I think the banks usually require for the minimum down payment. So, if your car would cost 1 million pesos, you need to pay 200k for the 20%. down payment. You also need to know that the chattel and insurance are not included in the 20% down payment. Which means, you need to pay extra for the other fees. They would also probably charge you 30K for insurance and 20K for chattel. To sum up, you will approximately pay 250k for the down payment.


The bank will issue a purchase order (PO) in which the bank will pay the whole amount of the car. It is good as cash, and paying cash entitles you a discount. Don't forget to haggle for discount. Usually,  the car dealer would give like 20k discount depending on the car.


Oh, before I forget, you also need to pay freight and handling which would range from 20k-30k and TPL insurance(LTO requirement) that cost P1500.


Please don't forget to ask for the freebies.

These are the following freebies that they usually offer:


* Car tint
* Car matting
* LTO registration
* Seat cover
* 3 years warranty
* Half full-tank of fuel


I hope you find this article informative...=)