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| Car Refinancing Without Taking Your Car |
With the above considerations on the line, you are going to need a lot of resources and knowledge to achieve it. It so happened that I know a lot about car financing and for all it's worth, I would like to take time to give you all the necessary information I know of to this day to help you get the best car deal you can. At first, come to understand that most car loan promos will only come your way if you have cash money to pay and buy your dream car in full. So let us skip that promo in mind and concentrate instead on what factors can possibly help to get the best deal based from the 3 major factors for car financing which I have mentioned above in the first paragraph. If you want to skip the beat and head straight to useful read, you can go visit a very good list of 3 tips in buying second hand car which also applies to getting a new auto.
3 Major Factors to Consider When Buying Via Car Financing
- How to get lowest possible interest rate -
There are basically so many ways to arrive at the lowest possible interest rate for your car loan or car financing company search. Just like many clients I have served loan consulting with, I always say to them that there are endless ways only for those who know where to find it. First, I strongly suggest that you go find a good agent first or a consultant who knows his or her way around the car financing arena and must be familiar with the figures which eventually you will encounter somewhere along the way. With figures though, you can rely on your own instincts and can use the in-house marketing assistants in the car company brand you wanted to buy car from using just a household calculator. You'll be surprised at how easy it is to make computations. Remember that most of the time, the best deals when buying a new car will depend on how wise you are at conversing with your marketing agent. If you are confident enough that you can handle this, then by all means go straight to the showroom and talk to an agent. Take that test drive if you may. If you are still in doubt, you can visit a very good post about car financing which might help you big time realizing your options. Second, you have to make your own calls and visits to make a canvass of prices. Be sure to only get your hotline numbers from official websites of major car sellers in the Philippines like Toyota, Nissan, Mitsubishi, Honda, Kia, Chevrolet, Hyundai, Ford and so on.
Get Lower Premium Rate - How to arrive at low initial down payment -
Low down payments usually only come if promos are available. If you are lucky enough to catch up with the latest from Top Gear website, you might even come up with zero down payment offers and discounts plus freebies in mall showrooms. And what good way to get a car financed than during special occasions and holidays in the Philippines which we all know all sorts of promos pop out here and there for car companies, department stores / malls and supermarkets. The second stint that can help you arrive at low initial down payment is through stretching your loan payment program. But of course this has a down side of higher interest rates for longer payment terms. If you are prepared for that, then, it's good to go.
Good Way to Prevent Foreclosure - How to get low monthly payment premium -
Low monthly premiums greatly depend on small and big factors but let me assure you that with car financing on the line, it usually comes with a disadvantage. Like for example, you can try to extend your car financing loan payment term. This is basic - "the longer you pay for a loan, the lower the monthly payment you will have". But apart from this technique, there is another way to lower your premium and that is through car refinancing. With this scheme by private lending companies and some banks in the Philippines, in order to qualify, requirement is that the amount of remaining balance must not exceed the possible loanable or financiable amount or fair market value price multiplied by the percentage allowed from used car financing. If you are having a hard time trying to comprehend and understand this, then you can head straight to a useful article about car refinancing here.
No Need to Take Your Car
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| How to Get Lower Monthly Premium |
How Car Refinancing Lowers your Monthly Premium Payment
If you currently have a big monthly payment amortization for your car a few years back and you feel like you either can't cope up with the high premium or won't be able to continue paying sooner or later, there is always a way to lower that monthly rate. One thing to consider is that this scheme may not be used to take advantage of unpaid balances of more than 3 months or if the car is due for repossession or sheriff by the bank or financing company. Furthermore, it cannot be used to bail you out of inability to pay for your monthly premium due to lack of source of income or too many bad or failed payments as stated below especially if you just bought your car. Usually, a 2-3 years payment can qualify you if you have 5-year payment term. To the least, a 70%-80% payment will most likely do.Payment problems in short can be done though car refinancing or car loan takeout. But first, you have to qualify to avail and in order to, you have to have your car loan paid at least 70%-80% depending on how much initial down payment you made back when you bought your new or used car. Another qualification is to make sure your payments are up-to-date and delinquent balances or unpaid dues or too many penalties due to closed or insufficient funds in your checking account.
Car refinancing can dramatically really lower your monthly payment and can sometimes even save your from car repossession or a replevin case. By virtue of having a smaller balance being able to pay a couple of years now, your remaining balance is pretty small at this point of your payment with the financing company. This will trigger a lower monthly premium for you if you apply for refinancing because the base figure of your loan is low and if you try to extend it further to another 5-year program, then eventually, a very low monthly payment will be achieved.
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| Car Loan Calculator |
Php 700,000 loan for 5 year term (less interest rate) = Php 11,666.66666666
If you were able to pay for 3 years, your balance left is basically just 2 years which amounts to only Php 280,000
Php 280,000 loan for a refinancing scheme of 5 years (less interest rate) will only give you a monthly payment of = Php 4,666.666666666
Think about it... Is this low rate acceptable enough for what car refinancing really does?
Reminder:
Car refinancing is a car loan without taking your car scheme. You only need a copy of the OR CR with encumbrancy notation to use as a requirement to be submitted along with other requirements for regular car financing loan.
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