Buying my first car - Inquiries

**rinkana** · December 3rd, 2017 09:53 PM

Hi guys,

This will be my first time buying a car and I want to properly plan everything. Thus, I need your advice or opinions on my items below. Thanks!

1. Dealer vs Bank Financing?
- Which is cheaper?
- Will I get freebies/discounts if I choose Bank Financing?

2. What monthly costs should I consider aside from the monthly installment payment? (disregarding tolls/fuel; will just be used during weekends)
- Insurance = XXXX.00?
- PMS = XXXX.00?
- Any other?

3. Toyota Corolla Altis G M/T VS Honda City E CVT or M/T.
I know that they're on different category. I just want to take your thoughts on which is better to get. I am currently leaning towards the Altis but still will be based on your inputs on item 2 since budget is a concern.

Thank you in advance!

**dr. d** · December 3rd, 2017 11:12 PM

1. i don't know which is cheaper.
what you should do, is to get written quotations from them, and do the math.
i think you will get the same freebies, bank or in-house.

2. annual LTO and required TPL insurance. let's say, 4K a year.
comprehensive insurance, 30K for the first year siguro, as we don't know what car is in the works yet. it gradually decreases per year.
pms, say, 5K x 2/year = 10K annual.
fuel. say, 8 km/li. do your own mileage estimate, po. we don't know where you live and go.
parking fees. 50 pesos is a popular park-all-day fee in the weekend mall jaunt.
and i do not believe you will be using the car on weekends only.

3. altis vs. city. place your bets, gentlemen.

**gauss** · December 4th, 2017 12:52 AM

Originally Posted by rinkana

Hi guys,

This will be my first time buying a car and I want to properly plan everything. Thus, I need your advice or opinions on my items below. Thanks!

1. Dealer vs Bank Financing?
- Which is cheaper?
- Will I get freebies/discounts if I choose Bank Financing?

2. What monthly costs should I consider aside from the monthly installment payment? (disregarding tolls/fuel; will just be used during weekends)
- Insurance = XXXX.00?
- PMS = XXXX.00?
- Any other?

3. Toyota Corolla Altis G M/T VS Honda City E CVT or M/T.
I know that they're on different category. I just want to take your thoughts on which is better to get. I am currently leaning towards the Altis but still will be based on your inputs on item 2 since budget is a concern.

Thank you in advance!

1. Bank is cheaper in absolute terms (i.e, the total cash you pay out for the life of the loan, including the downpayment). In my recent purchase, the difference was Php75K. Spread over five years, it looks acceptable, but even if we invested the savings from lower DP, we wouldn't realistically earn that 75k. So I'd rather pay bigger DP and minimize my monthly payments. Low DP is one-time convenience, high monthly is 3-5 yrs of pain.

2. Roughly, Insurance premium is 2.5-3.5% of current value of the car. Insurance providers assume a 10% depreciation per year.

PMS will depend per vehicle. For the first 3 years, maybe 10-20k per year?

Aside from LTO registration wala na ko maisip. Pero if this is your first time to own a car, just remember you will now have fuel, toll, and parking expenses, and it's safe to assume these will be much higher than your expenses on public transpo.

3. With conditions of the car being equal, my own choice is altis.

**rinkana** · December 4th, 2017 03:27 AM

Thanks, all! Very informative po.

Just a what-if on item 3:

Honda City VX or Toyota Corolla Altis G M/T? (they're both on the 900k-ish price)

**lsdgenie** · December 7th, 2017 07:05 PM

Originally Posted by rinkana

Thanks, all! Very informative po.

Just a what-if on item 3:

Honda City VX or Toyota Corolla Altis G M/T? (they're both on the 900k-ish price)

3) Cant recall - The VX is Automatic? In any case - Id usually say get the one in the higher class, which in this case is the Altis. However, if this will be a daily driver for you, and you live in a high traffic area, a Matic would probably serve you better. The Altis is still the better choice overall if it'll just be a weekend car, and comes in a very close second for me as a daily driver, even if its an M/T.

**TheUninvited** · December 8th, 2017 05:50 AM

Originally Posted by rinkana

Thanks, all! Very informative po.

Just a what-if on item 3:

Honda City VX or Toyota Corolla Altis G M/T? (they're both on the 900k-ish price)

City VX if you love the toys, Altis if you want a boring car (it does have complete airbags even sa base M/T, ata).

Para mas simple, if automatic, get the City; if manual the Altis.

Consider also that both models are nearing the end of its life. In 1-2 years may all-new models na for both.

Mas mura maintenance ng Honda if you will consider that.

**kyleguy298** · December 10th, 2017 09:10 PM

1. It is usually cheaper to buy it in cash as may interest ang financing one way or the other. Freebies might, however be more kapag financing dahil mas malaki kita ng ahente galing sa financing.

2. Insurance, I'm not sure if pwede monthly, pero sa akin, I pay it yearly. In the case of my VW Golf GTS which cost 1.4M, nasa around 36K a year. Mas mababa to pag masmura ang car. PMS is dependent rin sa model ng car, pero mine nasa P9,000 for 15,000km. For Toyota in general, mga P3,000 - P6,000 ang PMS every 10,000Km depende sa model rin.

3. Corolla all the way if your budget permits naman.

**rinkana** · December 10th, 2017 09:52 PM

Thanks sa input, guys.

Going Honda City E CVT na lang ako. Sayang pera. hehe. Mejo tight rin budget kapag pinursue ko yung altis. Color naman next problem. wahaha. Kapag ba bumili ko sa Honda, pede ko agad palagyan ng Modulo Acce? or mavovoid ba warranty kapag sa labas nagpalagay? Gusto ko kasi ng Spoiler and back sensor. hehe.

**Hatredcopter** · December 14th, 2017 12:15 AM

Thanks, in the same boat ako ngayon. Looking to buy a honda city VX naman. Nag inquire na ako sa 5 banks for financing and so far lahat sila mas mura compared sa honda inhouse financing. Pinakamababa yung interest rate ng security bank followed by metrobank.

**dr. d** · December 15th, 2017 08:12 AM

Originally Posted by kyleguy298

1. It is usually cheaper to buy it in cash as may interest ang financing one way or the other. Freebies might, however be more kapag financing dahil mas malaki kita ng ahente galing sa financing.

2. Insurance, I'm not sure if pwede monthly, pero sa akin, I pay it yearly. In the case of my VW Golf GTS which cost 1.4M, nasa around 36K a year. Mas mababa to pag masmura ang car. PMS is dependent rin sa model ng car, pero mine nasa P9,000 for 15,000km. For Toyota in general, mga P3,000 - P6,000 ang PMS every 10,000Km depende sa model rin.

3. Corolla all the way if your budget permits naman.

you can pay for the annual insurance in monthly installments.
but if you get into an accident, you may have to pay the insurance in full, before they will entertain having your car fixed.