Making the decision to purchase your first car is a big milestone, and is a sure sign that you’re moving up in life. The next question is, how will you pay for it?
One option is to save up for the car little by little until you have enough cash to pay for your car in full. However, this method could take a while and you wouldn't want to deplete your entire savings for this big-ticket purchase. Which makes financing the ideal and arguably, the more convenient option.
Here’s why it might actually be a better idea:
You get the car right away.
Chances are, you’re buying a car because you need one. If you choose to pay for it in cash, it could take several months—or even years—before you're able to save up the full amount and get the keys. When you sign up for an auto loan, you can leave the showroom with your unit after everything is settled and all the papers are signed. So if you need a car for your business, or to ferry your family around town, financing allows you to accomplish these things faster than cash would.
You get financial flexibility.
You were able to save every extra centavo and finally buy your first car. But what about your other expenses? What will you do then when your next credit card bill arrives? Or if an emergency comes up and you need money right away? With an auto loan, you can manage your finances better by allocating a set amount of your income each month. Giving you more flexibility with your day to day expenses.
You can easily afford the car you really want.
If you buy a car outright with cash, you might have to settle for a lesser model just to save money. Doing so could lead to dissatisfaction and the added cost of upgrades and even repairs. Financing gives you the option to push for the car you really want—a newer, more reliable model.
Of course, an auto loan comes with a set of responsibilities. When choosing payment terms, think of the bigger picture instead of just the monthly amortization. Since you still have insurance, gas and other maintenance expenses to take into consideration, you can mull over lowering your down payment or maximizing your loan term up to six years. Keep in mind that a longer loan term means lower monthly amortization and a shorter loan term means higher monthly amortization.
If you do decide to go the financing route, choose a financial partner that’s trusted and reliable. BDO Auto Loan offers low rates with flexible payment terms, and you can even get approval in as fast as 24 hours upon submission of complete requirements.
Apply for a BDO Auto Loan online until June 30, 2018, and enjoy rebates of up to P20,000. To find out more, visit www.bdo.com.ph/autoloan.