Auto Loan Philippines
 

Auto Loans widely varies in lengths of time and payment amounts. The term “AUTO LOAN” can affect the interest rate, amount of total interest paid and the overall price of purchasing a new or used vehicle. Thus, it is important to understand the types of terms available with most new or used car loans and how they can affect the amount you can actually pay.

The following are listed types and descriptions of auto loan terms normally available when purchasing a new or used car:

SHORT TERM AUTO LOANS are loans made for the purchase of a new or used car and have payment terms of 12 months (1 year) up to 36 months (3 years). These types of loans are designed to help a consumer quickly pay off a loan obligation for a new or used car purchase. However, the payment amounts of shorter term loans can be somewhat high or burdensome for some. This generally offer lower interest rates than do longer term loans, thus, people with bad credit may be required to use shorter term loans in order to approved by certain auto loan lenders. Interest rates can be somewhat higher than normal as people with bad credit can sometimes be expected to”buy back their auto credit”. Short term loans enable a person with bad or poor credit, to re-establish his or her credit history.