To BUY or NOT to BUY a Car

**malcoxx** · February 17th, 2012 05:33 AM

Folks, I want to request for everybody's honest opinion as I would like to help out a friend and give the best advise in her dilemma. The sitch is she wants to buy a brand new car for commuting to work and weekend activities. However here are the complications in her intent to buy:

1. She doesn't have a considerable savings. She is actually saving for the 20% dp as she targets to get one on or before the end of 2012.
2. She would like to have a brand new car, this is non-negotiable.
3. Her income can be approved for a car loan but she can only spare no more than 13k per month for amortization. However, I told her that even though she can afford 13k per month, things she still need to consider parking, gas (with its current price), quarterly maintenance, yearly insurance. So it all adds up. I think she earns around 40k / month.
4. If you recommend her to go buy, what can fall under her budget as she also likes at least power windows, alloy wheels and abs.

Thank you so much for your inputs!

**KERSMcRae** · February 17th, 2012 08:35 AM

just a quick question?
1. how far is her workplace from her residence?

2. does she live with her parents?

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a car can be a necessity depending on her type of work. & if the answer on item 2 is yes- then go ahead. get a good car. wala kasi problema kung wala naman syang ibang pinagkakagastusan like monthly bills (utilities), rent, tuition for siblings, etc.

ot:

kaya sabi nga ng iba, sarap talaga ang buhay pag "nakasiksik sa magulang'..

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edit:
what particular type of car pala ang plano niya kunin? by december, marami mga promos- so baka pwede pa sya makaipon ng malaking pang dp.

**robot.sonic** · February 17th, 2012 10:20 AM

Since di kaya ng budget nya. Wag na.

Baka makita na lang natin yan na nakapost na "for sale: assume balance".

**uls** · February 17th, 2012 10:34 AM

amazing

out of the question ang used? kahit 3 yrs old?

sounds like she's trying to keep up with people around her

**KERSMcRae** · February 17th, 2012 10:45 AM

Originally Posted by robot.sonic

Since di kaya ng budget nya. Wag na.

Baka makita na lang natin yan na nakapost na "for sale: assume balance".

sabi ni TS pinag-iipunan ng friend niya ang pang dp and plans to buy a car by the end of this year.- maybe, looking forward to her bonus and 13th month.. so, she still have time to think and might reconsider a pre-owned vehicle.
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**ghosthunter** · February 17th, 2012 10:47 AM

Originally Posted by malcoxx

Folks, I want to request for everybody's honest opinion as I would like to help out a friend and give the best advise in her dilemma. The sitch is she wants to buy a brand new car for commuting to work and weekend activities. However here are the complications in her intent to buy:

1. She doesn't have a considerable savings. She is actually saving for the 20% dp as she targets to get one on or before the end of 2012.
2. She would like to have a brand new car, this is non-negotiable.
3. Her income can be approved for a car loan but she can only spare no more than 13k per month for amortization. However, I told her that even though she can afford 13k per month, things she still need to consider parking, gas (with its current price), quarterly maintenance, yearly insurance. So it all adds up. I think she earns around 40k / month.
4. If you recommend her to go buy, what can fall under her budget as she also likes at least power windows, alloy wheels and abs.

Thank you so much for your inputs!

What is the car your friend is planning to buy?

I am curious with her P40K/monthly income, is that gross or net? And is she living with her parents or does she have her own apartment? At this point, every peso counts so if she is renting a home, that is less budget for a car. Has she considered all the expenses including fuel, parking costs, toll fees (if she has to use the SLEX or similar).

Given your assessment of her financial status, it actually might be better for her to buy a second hand car if she really needs personal transportation.

One alternative is to get the company to finance the car for her. The interest rate would generally be lower than she would get from bank financing.

**Retz** · February 17th, 2012 10:51 AM

sounds like a suzy orman show. lol.

**uls** · February 17th, 2012 10:56 AM

the fact that she's still saving for the 20% down screams CAN'T AFFORD IT

**vinj** · February 17th, 2012 11:18 AM

I'd say not to buy first and save up a little more since even to meet the 20% dp, she still has to save for it. Sayang lang since her hard-earned money will just go to interest and consumable expenses (fuel, insurance, service, etc.). Maganda if she can get a car plan from her company.

And make sure your friend doesn't fall for those low d/p schemes (yung mga 80K, all-in).