Buying A Car

[alsuave]

Has anyone tried getting a auto loan from a US Bank and using that to pay in cash for a car in the PI? I'm currently looking at financing a new vehicle but the terms offered by the dealer seem ridiculous to me.

[robert k]

I don't believe that a US bank would allow you to use a vehicle in a foreign country as collatera for the loan.

 

l believe you would have to use other collateral in the US if they will not make it a signature loan . I own Real [land] property in a different state than I live in in the US and my local bank would not loan money against the out of state property.

[OnMyWay]

US banks retain the pink slip when they make a car loan, so that would not be possible on a foreign bought car.

 

The car dealers here make a killing on loans.  Most loans have ridiculous rates, by western standards.

[alsuave]

I called up my bank in the US (USAA), and they were very cool. The will accept a loan for a vehicle in the Philippines. However, the dealer won't accept a check from a foreign bank. So I guess I'm still stuck.

[robert k]

If your bank will actually go for it, tell the dealer he can hold the car until the check clears. You have survived this long, what's another couple of weeks ? :)

Edited April 3, 2014 by robert k

[OnMyWay]

I called up my bank in the US (USAA), and they were very cool. The will accept a loan for a vehicle in the Philippines. However, the dealer won't accept a check from a foreign bank. So I guess I'm still stuck.

 

Be careful what you tell USAA about your living situation.  I was going to open an account there but when I told them I was living in the Philippines, they would not open it.

[alsuave]

I told them that I split my time between the US and the PI and therefore I need a car here too. They were ok with this.

[OnMyWay]

Another option for some people who still have a home or property in the US is to use a home equity loan.  They don't really care what the money is used for.  I thought about this.

[alsuave]

What's the best way to exchange a large amount of USD into a PHP? My US bank is willing to offer me a loan to purchase a car in the PI, but the dealer will only accept payment in PHP.

[scott h]

When building our house, we exchanged a very large amount. Our bank told us that their rate was lower than what we could get from a normal money changer. They called a money changer that they usually work with and we arranged a time the next day. We wired our money from the states, with drew dollars, handed it to the money changer, who gave us pesos. Very safe and saved a lot of peso with the better exchange rate.