Buying a Used Car

I recently received an email from someone who was planning to buy a "used" / "2nd hand" vehicle. He wanted to know how he could initially check that the unit he was buying was "clean". Here is one way to immediately check the LTO status of the used car -

Text this :*LTO space VEHICLE space XXX000* *
e.g., LTO VEHICLE XKY263*
XXX000 stands for your vehicle's PLATE NUMBER
SEND to 2600* and wait for Auto generated reply then save to your phone.

BUYING A USED CAR THROUGH FINANCING

Used vehicles up to 5 years old can still be purchased through bank financing. Some banks will finance the used unit at 70% of the appraisal value, others will shoulder 50% of the appraisal value.

The amount to be finance will depend on the vehicle model, make, year and condition. Make sure that you are approvable for a auto loan. Seek the advice of a reliable automotive sales agent or auto loan officer for an auto loan approval.

Here are the steps to do after having chosen the used vehicle to buy.
1) Advise the present car owner that you would like to purchase the unit through bank
financing.
2) Inspect the vehicle you intend to buy. Ask the present owner about the maintenance history
of the unit.
3) Check the LTO OR and CR (Certificate of Registration). You can initially use the Cellphone
Text Check method stated above.
4) Negotiate the purchase price of the unit. Then deposit a "earnest cash" of P5,000 with the
owner
5) Bring the unit to the bank for appraisal. Submit your auto loan requirements and fill up a
auto loan application
If your income is derived through employment, you will need to submit the following -
a) Certificate of Employment with compensation and/or latest ITR

If your income is derived from business -
a) Business Registration (DTI)
b) Latest ITR with a audited financial statement
c) If needed, a copy of your bank statements or passbook
6) Once your auto loan is approved. The bank will release a Bank Guarantee of Payment to the
present owner.

The Bank Guarantee of Payment will state that the following documents need to be submitted
(at this stage you can now pay your share of the purchase price to the owner to secure the vehicle's ownership)

a) Original Notarized Deed of Sale between you and the car owner
b) Stencils of the vehicle Engine and Chassis
c) Original LTO OR and CR under the name of the new owner
d) 1 yr Comprehensive Insurance of the vehicle that states that the vehicle is mortgaged to
the concerned bank (the buyer / borrower pays for the insurance premium)
e) payment of Chattel Mortgage Fee (the buyer / borrower pays for this)

As soon as the present car owner submits the above documents, the full amount financed will
be released through a Manager's Check payable to him.

Here are the steps for the Transfer of vehicle ownership

1) Bring the vehicle to Camp Karingal for Macro Etching and secure a PNP Clearance
2) Bring the following documents to the original LTO Agency that registered the Vehicle
a) PNP clearance,
b) stencils of the vehicle Engine and Chassis numbers,
c) Original Notarized Deed of Sale

Upon submission of the above documents, the LTO Agency will release a new LTO OR
and CR under the name of the new owner.

Buying a Used Car? Visit the following sites to search for one -

AUTO SEARCH PHILIPPINES - Free Ads for Used Vehicles