Car Sales Data (2023)

[dr. d]

I hate that there are too many cars on the road. I miss the 80s!

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in the mid-80s, there were only half as many filipinos here, as there are now.

[carxynogen]

What will happen kaya kung tanggalin low down, minimum 50% down na. Yung neighbor ng driver namin bumili vios 20% down, P18k per month.

I hate that there are too many cars on the road. I miss the 80s!

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Dadami pa to, BPI is now offering 7 year auto loan term.

[uls]

loans are big business

anything that can be sold on installment basis = loan creation opportunity

house/condos, cars, motorcycles, appliances, phones/gadgets

pansin niyo mas prefer ng casa ipa-finance ang kotse kesa cash

[Miles_on]

Stop sales on installment basis?

Why would they, when the dealers, repo. men/foreclosure people and the insurance folks* are all making HUGE amounts of money from it?

Dadami pa to, BPI is now offering 7 year auto loan term.

I'm not surprised they'd come up with such a product. That would be 7 years more of (usurious ) interest payments for the bank.


*Yes, even the insurance folks are in on it. Naka c. mortgage eh, natural, eh di need din ng comprehensive insurance for the entire term of the loan to protect the mortgagee.

[_Cathy_]

Cringe worthy yung mga rice mods... Tapos hindi mabayarang amortization...

Nung last nagpunta ako sa repo cars ng banks, ang dami vios, wigo, mirage and eon na naka rice mods... Yung iba may bakas pa ng pagkakakatay...

Kaya dapat higpitan uli ang loan criteria ng mga banks eh.

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you said what was on my mind. Add the ricey pickups and suvs pa.

Dadami pa to, BPI is now offering 7 year auto loan term.

what a nightmare

[hardwang]

If one is irritated with the thought of too many cars in the city, maybe try moving to other locations in the Philippines. Parang hindi naman traffic sa ibang lugar dito.

[Miles_on]

Kaya dapat higpitan uli ang loan criteria ng mga banks eh.

Banks are more concerned with past due loans that they cannot collect on, rather than defaulting secured loans para maghigpit sila ng loan criteria...

Of course, ma-penalize sila ng CB if lumaki yung amount ng non-perfoming assets nila (kasama diyan yung foreclosed securities) but its not too great of a concern (I'm not saying it isn't, but secondary concern lang).

[ice15]

Stop sales on installment basis?

Why would they, when the dealers, repo. men/foreclosure people and the insurance folks* are all making HUGE amounts of money from it?

I can't find my source, pero there was one article years ago that mentioned na kung lahat ng tao bibili ng cars in cash, malulugi dealership.

parang nasa 3% lang kikitahin nila per car tapos hihingi pa ng freebies si buyer.
then may sweldo pa mga staff nila, rent, taxes + utilities

[tigerdoods]

If one is irritated with the thought of too many cars in the city, maybe try moving to other locations in the Philippines. Parang hindi naman traffic sa ibang lugar dito.

Yeah moving out of metro.

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[dr. d]

I can't find my source, pero there was one article years ago that mentioned na kung lahat ng tao bibili ng cars in cash, malulugi dealership.

parang nasa 3% lang kikitahin nila per car tapos hihingi pa ng freebies si buyer.
then may sweldo pa mga staff nila, rent, taxes + utilities

someone made a breakdown before... that dealerships do not make big earnings on the sale of cars.
the someone further revealed, that casas made their monies on the arftersales and not on the sale of cars.
but i suppose, "every little bit helps".

when the loan defaults, "the bank stands to lose, big time". they can not possibly sell that remated car, to cover the programmed income at the start of the deal.
for a remated car to sell, bank has to offer attractive pricing. who wants fo buy a used car at brand new price?

it has happened before, i.e., loosening loan screening policies, and the resulting flood of defaulters thereafter.

[_Qwerty_]

diba dyan nga kumikita ang mga banks.. sa mga hinahatak na sasakyan.. lalo na kung naka 2 years na nang nagbabayad tapos nahatak..

someone made a breakdown before... that dealerships do not make big earnings on the sale of cars.
the someone further revealed, that casas made their monies on the arftersales and not on the sale of cars.
but i suppose, "every little bit helps".

when the loan defaults, "the bank stands to lose, big time". they can not possibly sell that remated car, to cover the programmed income at the start of the deal.
for a remated car to sell, bank has to offer attractive pricing. who wants fo buy a used car at brand new price?

it has happened before, i.e., loosening loan screening policies, and the resulting flood of defaulters thereafter.

[dr. d]

diba dyan nga kumikita ang mga banks.. sa mga hinahatak na sasakyan.. lalo na kung naka 2 years na nang nagbabayad tapos nahatak..

from the simplistic eyes of a non-finance person, this is how i see it:

cash price of altis = 1,317,000 pesos.

at 60 month installment program, the down is 125,000, and the monthly is 28,733.
thus, at the end of 60 months, the bank stands to have generated 125,000 down + (28,733 a month x 60 months) = 1,848,980 gross pesos.
that's an earning of 531,980 pesos after 5 years, or 40.4% of their five-year old investment.

if the buyer defaults after only two years,
the bank's coffers would have generated 125,000 down + (28,733 monthly x 24 months) = 814,592 pesos only.
that's 1,034,388 pesos short of the original projected gross earning of 1,848,980 pesos, had the loan gotten into full fruition at five years.
that's also 502,408 pesos short of its original investment of 1,317,000 bucks.

it might be difficult to sell the remated 2 year old car that had an original brand new cash price of 1,317,000 pesos, for a million bucks, to meet the original profit margin.
they may have to re-price it, to attract buyers.
thus, the bank will have to take a significant hit in its projected earnings, if it wants to get rid of its bodega-full of rematado-ed cars.
no bank wants its car buyer-on-installment, to default.
when a car buyer defaults on his loan, both buyer and bank suffer.

what about pasalo cars for sale by defaulting owner?
they'll practically have to almost give away the money they already paid the bank, to attract buyers.
otherwise... pasalo... "where buyer pays for a used car at brand-new price".

[_Qwerty_]

in your example that altis can still sell for 1M or more..

now imagine kung 3 yrs or more nang nagbabayad tapos nahatak pa..

pasalo is ok only if thru the bank.. pero kung hindi sasama sa usapan ang bank.. napaka delikado sa original owner..

from the simplistic eyes of a non-finance person, this is how i see it:

cash price of altis = 1,317,000 pesos.

at 60 month installment program, the down is 125,000, and the monthly is 28,733.
thus, at the end of 60 months, the bank stands to have generated 125,000 down + (28,733 a month x 60 months) = 1,848,980 gross pesos.
that's an earning of 531,980 pesos after 5 years, or 40.4% of their five-year old investment.

if the buyer defaults after only two years,
the bank's coffers would have generated 125,000 down + (28,733 monthly x 24 months) = 814,592 pesos only.
that's 1,034,388 pesos short of the original projected gross earning of 1,848,980 pesos, had the loan gotten into full fruition at five years.

it might be difficult to sell the remated 2 year old car that had an original brand new cash price of 1,317,000 pesos, for a million bucks, to meet the original profit margin.
they may have to re-price it, to attract buyers.
thus, the bank will have to take a significant hit in its projected earnings, if it wants to get rid of its bodega-full of rematado-ed cars.
thus, when a car buyer defaults on his loan, both buyer and bank suffer.

what about pasalo cars for sale by defaulting owner?
they'll practically have to almost give away the money they already paid the bank, to attract buyers.
otherwise... pasalo... "where buyer pays for a used car at brand-new price".

[papi smith]

from the simplistic eyes of a non-finance person, this is how i see it:

cash price of altis = 1,317,000 pesos.

at 60 month installment program, the down is 125,000, and the monthly is 28,733.
thus, at the end of 60 months, the bank stands to have generated 125,000 down + (28,733 a month x 60 months) = 1,848,980 gross pesos.
that's an earning of 531,980 pesos after 5 years, or 40.4% of their five-year old investment.

if the buyer defaults after only two years,
the bank's coffers would have generated 125,000 down + (28,733 monthly x 24 months) = 814,592 pesos only.
that's 1,034,388 pesos short of the original projected gross earning of 1,848,980 pesos, had the loan gotten into full fruition at five years.
that's also 502,408 pesos short of its original investment of 1,317,000 bucks.

it might be difficult to sell the remated 2 year old car that had an original brand new cash price of 1,317,000 pesos, for a million bucks, to meet the original profit margin.
they may have to re-price it, to attract buyers.
thus, the bank will have to take a significant hit in its projected earnings, if it wants to get rid of its bodega-full of rematado-ed cars.
no bank wants its car buyer-on-installment, to default.
when a car buyer defaults on his loan, both buyer and bank suffer.

what about pasalo cars for sale by defaulting owner?
they'll practically have to almost give away the money they already paid the bank, to attract buyers.
otherwise... pasalo... "where buyer pays for a used car at brand-new price".

Tubong lugaw pala ang bank hehe...

To simplify, let's round up figures

2 years nagbayad, so say gusto mag interest ni bank ng 10% per annum..

1.3M x 10% x 2 years = 260k

500k na lang kulang so plus 260k = 760k

30% depreciation on 2 year old car attractive na siguro...

So selling price is 1.3M x 70% = 910k

910k less 760k = 150k

150k buffer enough to pay another year of 10% interest

Tama kaya ito? [emoji23]

[dr. d]

what i know is, banks need to make a healthy profit, to remain afloat.
and their definition of "healthy" may not be the same as ours.

... where are these bankers when we need their insight...?
heh heh.

[dr. d]

in your example that altis can still sell for 1M or more..

.

well, they better sell it fast!
the price is only going to go down, as time passes.

[ice15]

someone made a breakdown before... that dealerships do not make big earnings on the sale of cars.
the someone further revealed, that casas made their monies on the arftersales and not on the sale of cars.
but i suppose, "every little bit helps".

when the loan defaults, "the bank stands to lose, big time". they can not possibly sell that remated car, to cover the programmed income at the start of the deal.
for a remated car to sell, bank has to offer attractive pricing. who wants fo buy a used car at brand new price?

it has happened before, i.e., loosening loan screening policies, and the resulting flood of defaulters thereafter.

yup... biggest source ng income nila is in-house financing. eto yung mga taong di ma-approve ang loan sa bank
very low DP na, super haba ng terms and ang taas ng interest

kaya a friend once told me. yung pupunta sa dealership na naka shorts and sando, halos pinapasa nila sa baguhang sales agent, kasi for sure bibili yan in cash tapos baka wala pang insurance.

pero yung papasok na 20 something ng pormang porma, aasikasuhin nila ng husto kasi malamang in-house financing yan.

[_Qwerty_]

they do.. usually yung magagandang inventory. yung mga fresh.. hindi na umaabot sa public.. binibili na nang mga taga banko mismo.. madami sa kanila into buy and sell..

well, they better sell it fast!
the price is only going to go down, as time passes.

[dr. d]

yup... biggest source ng income nila is in-house financing. eto yung mga taong di ma-approve ang loan sa bank
very low DP na, super haba ng terms and ang taas ng interest

kaya a friend once told me. yung pupunta sa dealership na naka shorts and sando, halos pinapasa nila sa baguhang sales agent, kasi for sure bibili yan in cash tapos baka wala pang insurance.

pero yung papasok na 20 something ng pormang porma, aasikasuhin nila ng husto kasi malamang in-house financing yan.

ako po yung gulanit ang pantalon, yung nakakita na nang maraming singer sewing machine.
kaya nga pag punta ko, tanging yung kaibigan kong SA lang ang lumalapit sakin.
alam niyang kahit kaunti lang ang sales talk, ay patok naman ang kumisyon, kahit maliit lang.
my usual spiel, "kayo na mag handle ng LTO...!"

[ice15]

^kami naman naghahanap ng kakilala sa head office. the higher the better.

kaya after the sale, ako pa magrequest sa SA kung pwede namin gawin yung photo with the giant key. kasi feeling ko talagang wala silang kinita sa amin. hahaha