Car Dealer Financing vs Bank Financing Question

[pctechphcom]

Hi
I need some advice, I made a computation comparing a car dealer and bank offer. Is my computation correct? I am located in a province the reason why the vehicle is price higher
Ford Ranger XLT 1,191,000.00
Car Dealer
All in one
All In package includes Comprehensive Insurance with AOG, LTO Registration(3 Years), Chattel Mortgage. Freight included in Unit Price.
P167,000 Downpayment
P23,195 per month in 5 years

Bank through BPI Calculator
P238,200.00 Downpayment
P20,213.00 per month in 5 years
Does not includes Comprehensive Insurance with AOG, LTO Registration, Chattel Mortgage
Comprehensive Insurance with AOG - PHP 45,000
LTO Registration(3 Years) - PHP 14,000
Chattel Mortgage - PHP 26,000
TOTAL DOWNPAYMENT -PHP 323,200


COMPARISON

1,391,700.00 60 Months * 23,195 Dealer
1,212,780.00 60 Months * 20,213 Bank
178,920.00 Interest Difference * 60 Months

Downpayment

167,000.00 * Dealer
323,200.00 * Bank ( includes Comprehensive Insurance with AOG, LTO Registration(3 Years), Chattel Mortgage)
156,200.00

Difference Between Dealer and Bank is only Php 22,720 unless the bank gives you a free Comprehensive Insurance with AOG, LTO Registration(3 Years), Chattel Mortgage which rarely happens

[sientobente]

Bank definitely. The BPI Calculator normally uses a standard rate of 26 to 28%. You can still haggle for a lower one specially if you have a good relationship with the bank. Just imagine what you can do with that margin of 178k, That could have been a downpayment for another car or get into your savings. Plus, BPI normally gives out the Comprehensive Insurance for free if you have a loan of more than 500k. Chattel mortgage is also something you can try to negotiate with the bank.