Don’t Buy a Car from the Ark Vehicle Trading Until You Read This

If you are thinking of buying a car from Ark Vehicle Trading and General Merchandise, you need to read this review first.

Zero percent interest. Ten percent discount. Low monthly amortization.

These are the promises of Ark Vehicle Trading if you’ll purchase a car with them.

Sounds too good to be true, right? Well, let’s see if Ark is indeed true to its advertisements.

In this review, you will learn how Ark is making money to finance its car dealership business. Also, you will know whether Ark’s business model is legit or a scam.

Keep reading.

Company Profile

Ark Vehicle Trading and General Merchandise prides itself as the first online auto dealership that caters to any brand in the Philippines. It is an SEC-registered company with registration #CS201716755.

Aside from cars, the company also offers motorcycles.

Romy Alburo, a pastor, founded Ark Vehicle Trading in 2017. Alburo says the company wants to help every Filipino to have their dream car without worries.

So, it was named after Noah’s Ark.

How to Get a Car or Motorcycle With Ark Vehicle Trading’s

  1. Inquire about their program. Get in touch with their certified agents.
  2. Submit all the requirements and deposit your initial down payment. Ark’s accredited agents will assist you during the whole process.
  3. You will receive a message or call from the bank once your application has been approved. The dealership will also contact you once your unit is available.
  4. Go to the designated dealership together with our certified agent and manager and deposit the remaining balance of the downpayment. You just need to fill up the release forms. Then, you can drive off with your brand new vehicle.

Ark Vehicle Trading Sample Computation

Perhaps Ark Vehicle Trading and General Merchandise offers the lowest car financing in the Philippines. Just look at this post from their agent.

Ark Vehicle Trading and General Merchandise Sample Computation Review Legit or Scam

To be exact, a Toyota Wigo will only cost you Php579,390. The amount is the sum of the down payment of Php186,900 plus total monthly amortization for 60 months of Php392,490 (6,452 x 60).

The figure is net of 10% discount {(Php623,000-Php186,900) x 10%} and no interest will be charged.

With this computation, we can assume that Ark Vehicle Trading is true to its promise; zero percent interest, 10% percent discount, and low monthly amortization.

Considering that Ark is not charging interest while giving free money with its 10% discount, we can conclude that its car dealership is operating at a loss.

To compare, we tried BDOs car loan calculator to determine how Ark’s policy differs from the market.

Sample Car Loan Computation from BDO compared to the Ark Vehicle Trading and General Merchandise

Spot the difference!

In BDO, the real price of your Toyota Wigo is Php754,980 inclusive of interest (average of 30.26% for 5 years). This includes the sum of the down payment (Php186,900) and total monthly amortization (Php9,468 x 60 months).

The difference between the market price of Php754,980 and Ark’s price of Php579,390 is huge. With this price, people are enticed to avail of Ark Vehicle Trading’s offer while it earns no interest and loses money from the 10% discount.

And don’t forget! Ark pays its agents too.

But, how could Ark afford to operate a car dealership business when its pricing policy is clearly at a loss? Why would Ark continue operating a business model that is losing money?

Read the succeeding paragraphs and find out.

How Ark Vehicle Trading and General Merchandise Makes Money

Ark makes money from the down payments of buyers.

For instance, if you want to purchase a vehicle and give a down payment of 30% of the price to Ark, it will retain the 20% and pay only the 10% as an initial payment to the bank.

Generally, approval with Ark is straightforward. Anytime during the day, your application could be approved. However, your loanable amount still needs to be approved by the bank.

This time, agents will tell you that if the bank asks how much your down payment will be, you should say a percentage below your down payment to Ark. For example, tell 10%, if your down payment to Ark is 30% or say 20% if your down payment is 40%.

Once approved and the vehicle is released, you pay the low monthly amortization to Ark while it pays the high monthly amortization to the bank.

What happened to the down payment kept by Ark?

According to the agent we interviewed, Ark uses the money to finance its other businesses. Income from these ventures is used to finance your discounted and interest-free vehicle.

And wait! Don’t you know that agents are making a lot of money too? Where are their commissions sourced? From other businesses?

Ark must be operating very profitable “Other Businesses”. What do you think?

Is Ark Vehicle Trading and General Merchandise Legit or Scam?

We believe Ark Vehicle Trading and General Merchandise is a scam.

The fact that the company retained a down payment from you instead of paying it all to the bank is clear evidence that it solicits investment from the public.

The public is promised of discounted vehicle price and zero interest if they let Ark uses their money. It uses the retained down payment either to finance its other businesses, pay the agents or finance the monthly amortization.

While Ark is registered as a Corporation, we cant’ find evidence that it has a Secondary License to sell investments to the public. Hence, we call it an investment scam.

Moreover, there is a chance Ark is operating as a pyramid scheme. If it is using your down payment to finance the amortization of earlier car buyers, then we can conclude that is a pyramid scheme.

Furthermore, we’ve seen complaints on their Facebook page from people who haven’t received their OR/CR yet. These complaints were left unanswered and should serve as a red flag before transacting with them.

Conclusion and Recommendation

It is too good to be true, it probably is.

We recommend you stay away from the Ark Vehicle Trading and General Merchandise. We think it is a scam.

Based on the information we gathered, it is soliciting investments from the public in the form of down payments for vehicles. However, a portion of these down payments are retained and are used in the company’s operation.

People who purchased vehicles from the subject company are promised a discounted price and a zero-interest plan.

In addition, we believe the company is operating as a pyramid scheme where the amortization of the earlier buyers is taken from the down payments of new customers.

If you are a victim of Ark, we suggest you report your case to the SEC.

What are your thoughts on Ark Vehicle Trading and General Merchandise? Share them in the comment section below.

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