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Has anyone had experience with financing a car in the DR? Do dealers offer financing
Mostly done by banks, but you can also do it via these loan-sharks; DON'T!
Banks charge you about 15 to 20% intrest on a yearly base.
My advice however is not to finance a car.
I financed a 2005 Murano a few years ago through the dealer. Alberto Motors outside Santiago. Interest rate looked very appealing at 3.6% until I found out that was per month!! Paid it off right after finding that out. Always read the fine print!!
You will be under water on the vehicle from day one, due to the current economic situation... there are no buyers atm and car lots have been full for a long time.
So you better be prepared to make payments as you cannot sell the car without taking a loss..
IMO you woud be better off offering to take the car off his hands at a deep discount
So you better be prepared to make payments as you cannot sell the car without taking a loss..
IMO you woud be better off offering to take the car off his hands at a deep discount
We financed some vehicles to help establish credit in this country. They do look at your credit in the US but I thought having credit established here would be a good idea as well. We went through Banco Leon for one loan and Banco Reserva for the other one. We paid both of them off over time to establish the credit (paying right away does nothing for you).
Banco Leon was easy to deal with and did not change the interest rate once it was set. I used the bank in Sosua. But I also hear through the grapevine that the Leon family are selling Banco Leon so I'm not sure what impact that will have (if true).
Banco Reserva was difficult...in the extreme. They changed the interest rate unilaterally about 1 year into the contract. Unfortunately my Spanish sucks so I did not realize the contract allowed for that. The interest was bumped to 29% at one point (ouch). Finally we just paid it off.
I'd say financing a car here is a bad idea based on my two experiences. While Banco Leon was the easiest and more "normal" in the process the interest rate (around 19%) was just too high to be practical. Unless you know you have money coming in and can pay it off well before the end of the term (make sure there is not an early payoff penalty!).
That all said, September is "loan fair month" in this country so every bank and car dealer will be offering great deals to buy a car with a loan. If you do it, make sure you know the fine print and have a plan to pay it off fast before the interest kills you!
Banco Leon was easy to deal with and did not change the interest rate once it was set. I used the bank in Sosua. But I also hear through the grapevine that the Leon family are selling Banco Leon so I'm not sure what impact that will have (if true).
Banco Reserva was difficult...in the extreme. They changed the interest rate unilaterally about 1 year into the contract. Unfortunately my Spanish sucks so I did not realize the contract allowed for that. The interest was bumped to 29% at one point (ouch). Finally we just paid it off.
I'd say financing a car here is a bad idea based on my two experiences. While Banco Leon was the easiest and more "normal" in the process the interest rate (around 19%) was just too high to be practical. Unless you know you have money coming in and can pay it off well before the end of the term (make sure there is not an early payoff penalty!).
That all said, September is "loan fair month" in this country so every bank and car dealer will be offering great deals to buy a car with a loan. If you do it, make sure you know the fine print and have a plan to pay it off fast before the interest kills you!
In Santo Domingo there are loads of dealers who will finance you on old school rules, but unlikely if you don't have good family, or a good reputation. All our taxis are bought on finance from the dealers, but none of them are owned by the drivers until that final payment is made, which never happens as they are upgraded ever 3 years, 60% are sold on hire to buy finance.
Dealers finance, that isn't a problem, but you aren't going to get it if you have nothing to secure it. Being a solid family name in the area, a house you have lived in for 25 years and own, 5 or 6 sponsors.
Dealers finance, that isn't a problem, but you aren't going to get it if you have nothing to secure it. Being a solid family name in the area, a house you have lived in for 25 years and own, 5 or 6 sponsors.
Many dealers offer financing without the need of a bank. I once bought a car like that with a dealer in Moca and I had a very positive experience. Some dealers will ask you to pay 50% of the car upfront but you can find others that will allow you to leave less: $150,000/$200,000, etc. From then on you can have fixed montly payments.
You will have to pay for a full insurance. My dealer worked with La Nacional de Seguros and back then I had to pay an extra $25,000 for insurance.
The papers won't be under your name until you are done with the payments but once you're done they just give you the matricula with your name on it. You don't have to do anything extra for that!
I bought a used SUV @ Auto's Chico near Sarasota/Nunez by Parque Mirador in the Capital. I put 1/2 down & he financed the rest @ 2% monthly but I paid it off in 12 payments (significant payments!). Basically paid off the principal in 10 months & paid 2 months interest at the end.
Chico's ok for a gangster. You're not going to get the best of Chico, but he's pretty straight forward & treats you decent. I had a couple issues with my vehicle at first & he fixed them right & w/out constant harassment (a minor miracle in the DR). When the year was up he called me over to his office & handed me the title, no hassles. I've also rented cars from him at very reasonable rates/terms (by DR standards).
Funny story about Chico. Shortly after paying off my ride I saw Chico on the news. It was an expose show about "botellas" & corruption. They wanted to know why Chico was receiving pay as a Sergeant in the PN if he wasn't a police officer? He protested he was & that it was just a misunderstanding or something, then they agreed he was a police officer & asked how a humble Sergeant in the PN could afford to build Torre Chico, a luxury highrise/condo near Parque Mirador? He said he built it with money from his car lot. Of course they wanted to know how a simple PN Sergeant could afford a car lot? How much was his on-lot inventory at the moment? etc. (btw He named his high-rise "Torre Chico", which is across the street from "Auto's Chico", "Chico Rent-A-Car" & "Limosina Chico", which is about as f'ing campi as it gets lol). I think he eventually weaseled his way out of the investigation but they were hammering him pretty good & it was entertaining (it always is when the greasy DR politician/officer/lawyer/"businessman" type gets caught red handed).
Sounds weird but this actually started out as an endorsement of Auto's Chico & veered off into a late night ramble..
Chico's ok for a gangster. You're not going to get the best of Chico, but he's pretty straight forward & treats you decent. I had a couple issues with my vehicle at first & he fixed them right & w/out constant harassment (a minor miracle in the DR). When the year was up he called me over to his office & handed me the title, no hassles. I've also rented cars from him at very reasonable rates/terms (by DR standards).
Funny story about Chico. Shortly after paying off my ride I saw Chico on the news. It was an expose show about "botellas" & corruption. They wanted to know why Chico was receiving pay as a Sergeant in the PN if he wasn't a police officer? He protested he was & that it was just a misunderstanding or something, then they agreed he was a police officer & asked how a humble Sergeant in the PN could afford to build Torre Chico, a luxury highrise/condo near Parque Mirador? He said he built it with money from his car lot. Of course they wanted to know how a simple PN Sergeant could afford a car lot? How much was his on-lot inventory at the moment? etc. (btw He named his high-rise "Torre Chico", which is across the street from "Auto's Chico", "Chico Rent-A-Car" & "Limosina Chico", which is about as f'ing campi as it gets lol). I think he eventually weaseled his way out of the investigation but they were hammering him pretty good & it was entertaining (it always is when the greasy DR politician/officer/lawyer/"businessman" type gets caught red handed).
Sounds weird but this actually started out as an endorsement of Auto's Chico & veered off into a late night ramble..