Thursday, January 30, 2014

Cross that out (Part Un)

I have always been a fan of listing down things. From the most mudane everyday shopping lists and to-do lists to the more abstract list of things I must do before  turn 20, 30, etc...

This month, I decided to finally cross out GET A CAR off of that list. This is on my list of things to do before I have a baby. Mike and I have only been borrowing cars from my brothers and his dad before. If we get a baby, I don't wanna go through he hassle of having to borrow a car if said baby decides to get ultra ill at 3 in the morning.

So we have decided -- well mainly I decided, if it was up to the boy, he'd get a big bike instead, to buy our first car.

Let me walk you through the process -- which up to now is still not finished. The important documents/points, I'll italicize.

1. Deciding on the car. First things first. What car do we want. Here were our considerations:
  • Carbon footprint - being the pseudo-green that I am, I wanted a car with the most gas mileage. 800CC is currently the lowest for cars,  running at 14-21 km/liter.
  • Price - we set our budget at the PhP400K - 500K range.
    • From here we decided on either a Suzuki Alto Deluxe or Hyundai Eon GLS

2. Brand new or Second hand? Then we started canvassing suppliers. We just typed the name of the cars we're interested in at and out came a myriad of search results both second hand and brand new. We were initially considering getting a brand new Suzuki Alto at first mainly because it's cheaper and for some strange reason that I trust Japan more than I do Korea.

Until my brother showed me an ad for a second hand Hyundai Eon 2012 GLS with only 33K on its mileage, priced at 345K. A brand new one would cost 498K, so that's already 150K savings. And given it's mileage, we're pretty sure it's used very very seldom. Plus there's the add ons of a back up sensor/camera, leather seat covers and 3M tinting. So yeah, we got sold on that. We met up with the seller, left an earnest money of 15K and advised that the rest will be through bank financing.

3. Finding the bank to finance. BPI had this online facility to apply for an autoloan. Since BPI is our primary bank, it immediately became our go-to-bank. I was really hopeful that they'll approve the autoloan. But they didn't. BPI rejected our autoloan application. I am a little hurt with this; Something about me and husband being with an employer for a fairly short amount of time. Not even considering that my husband was with his previous employer for 4 years.

Good thing there's still plenty other banks out there. I went and applied at EastWest bank and BDO. I applied directly at EastWest, and BDO with a broker.

Eastwest was the fastest one to process, though the lack of support to clients kind of turned me off. They approved the autoloan in a day without asking you for any requirement. Just fillout a form which they sent me through email. Then they replied to my email saying I am approved then asked for the details of the seller to have the car appraised. They'll reply again with a long list of requirements without any explanations. I called them to clarify things, though the loan officer seemed very distant and uninterested in our business.

With BDO, it took a little longer to approve because they ask for the requirements first. Then once approved, they'll ask you to come over to their office in JMT Plaza in Emerald Street (in front of Podium). What I liked about this is that the broker was very accommodating in providing all the details.

Requirements which the bank asked us to submit for approval of autoloan were:
  • Latest ITR or Certificate of Employment with Compensation and 3 months' payslips of buyer and co-maker.
  • Valid IDs 
This took about 5 working days.

4. Choosing the bank among those which approved. With EastWest, we need to open an account to be able to go through with the autoloan. BDO on the other hand, is our secondary bank and we have a savings account and credit card with them. I had to internally decide on this factoring in the fact that BDO is open even Saturdays and Sundays on malls. That basically decided it.

So me and my husband went to the BDO Consumer Lending Office and there we signed the Chattel Mortgage Promissory Note and was provided the Credit Approval Advice Memo (which will also serve as the guarantee letter to the seller). We then went to a BDO branch to pay the Chattel Mortgage fee and then we provided the Credit Approval Advice Memo/ Guarantee Letter to the seller.

At this stage, they provided us with the second set of requirements which will be needed for transfer of ownership:
  • Original Notarized Deed of Sale between you and the car owner
  • Stencils of the vehicle Engine and Chassis
  • Original LTO OR and CR under the name of the new owner
This took another 5 working days.

5. Transfer of Ownership. Now this, the seller decided to do this part themselves. We offered being there on this process, though perhaps there is a fear on their part of us running away with their car, so they said they'll do it for us but we'll just pay for processes/ fees. We agreed. After all, one off our plate. This is the nity-gritty.

To process this, a Deed of Sale needed to be signed and notarized by buyer and seller. Then, the car must be brought to Camp Karingal for PNP Clearance, Stencil and Macro-etching, though the owners said they just processed everything in LTO Laloma where the car was registered. Then they finally processed Transfer of Ownership to new owner (us) by presenting Deed of Sale, PNP Clearance, Stencils, a TPL Insurance (acquired in LTO under Great Domestic Insurance) and the buyer's TIN ID

Another 5 working days. Total days spent, 21 days.

As of today, 6:07 pm, this is what we've accomplished. I'll blog again on the next steps. Part 2 is here.

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