PROCESS AND STEPS IN ACQUIRING FINANCIAL PRODUCT

(Car Loan)

University of Nueva Caceres

City of Naga

In Partial Fulfillment

Of the Requirements in BUSINESS FINANCE

Prepared by:

Al Xander Lopez

Prepared for:

Mr. Wenifredo Efondo

October 03, 2018

UNIVERSITY OF NUEVA CACERES

Naga City

October 3, 2018

Mr. Wenifredo Efondo

Professor

Dear Mr. Efondo,

As agreed in our class, attached is my final project in our subject Business Finance under the topic

of Financial Instruments/Products entitled: PROCESS AND STEPS IN ACQUIRING FINANCIAL

PRODUCT (Car Loan)

Attached are the related documents about the vehicle purchased under the loan contract (car loan).

I hope you find this document satisfactory for your grading purposes.

Yours truly,

Al Xander Lopez

Student

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 Table of Contents

Title Page .....................................................................................................................................i

Letter of Transmittal .................................................................................................................. ii

Table of Contents ...................................................................................................................... iii

Introduction ................................................................................................................................. 1

Decision- Making ....................................................................................................................... 2

Requirements and Procedures ..................................................................................................... 3

Appendices .................................................................................................................................. 4

I. EW Pricing Table

II. Collection Receipt (Reservation Fee)

III. Collection Receipt (Downpayment)

IV. Sales Invoice

V. Client Certification

VI. Acknowledgement of Responsibility

VII. Vehicle Delivery Receipt

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 Introduction

Today’s generation is more focused in technological advancement due to the goal of

making an easier way of living. Mobile phones, televisions, personal computers, cars, and other

electronic gadgets are continuously improved to give better satisfaction to its consumers. Users of

these goods include different kinds and levels of people and its purpose differs on how they are

used by the consumers. One of the goods having an increasing demand are personal vehicles

specially cars, since it became a necessity to users who are businessman and other professionals

that finds owning a personal vehicle more convenient to operate their jobs.

Despite the fact that cars are expensive, car dealer companies and car companies are

continuously growing. With this, these companies came up with several ways on how they would

attract their customers. They improved their marketing strategies as well as provide an efficient,

easy and short - term affordable mode of acquiring brand new cars through the use of auto/ car

loan.

Before, having your own car really defines your financial status but as time goes by cars

became more accessible even for those mid-earners because of the car loan. Lots of banks and

financial institutions offer car loans with different interest rates, monthly amortization, and years

to pay. This resulted for an advantage on the part of prospective clients/ users but a disadvantage

to the society as a whole.

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 Decision – Making

Buying a car involves intensive evaluation of advantages and disadvantages it would bring

to your life. With the inflation rate increasing nowadays, the price for gasoline and other related

car products also increases, thorough decision process is a must in order to avoid regrets in the

end.

First, the family(interviewee) identifies the reason why they need to buy a car. The 2 main

reasons why they need to buy a car is; their job is distant from their home and because the school

where their son is attending is both distant from their home and jobs. Why car and why not

motorcycle? It is because they think that car is safer in so many ways compared on riding a

motorcycle.

Second, the family think for almost a week in order to decide on what brand and model of

a car they want to buy. This decision process includes actual canvassing in different car companies.

After a week of arguing and comparing the specs of different cars, they came up with a good

looking and automatic car, the Ford Eco Sport. It can handle different types of terrain especially

the road to Caramoan.

Lastly, how can they afford the car they’ve chosen. Given the circumstances that their

savings are not enough to buy the car, they inquired to the main office of Ford Company in Pili on

what are the available options under installment method they have. Here they chose the method

which suits their financial capacities.

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 Requirements and Procedures

REQUIREMENTS PROCEDURES
I. Filled – up application forms I. Fill – up application forms

II. Latest Income Tax Return from provided by FORD.

BIR. II. Pay the reservation fee.

III. Checking Account (Any bank) III. Complete the necessary

IV. Proof of Billing documents required.

V. Pay Slip IV. Presentation of completed

VI. Company Certification required documents.

VII. Two (2) Valid IDs V. Wait for the approval of car loan

VIII. Downpayment (Cash) (FORD).

VI. If approved, pay the amount of

downpayment.

VII. Signing of contract and client

certification.

VIII. Wait for the release of the car

(1 – 2 Weeks).

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APPENDICES