Help: Auto Loan re Ford Fiest 1.4L 5DR Hatchback

**Foolishopher** · August 31st, 2011 05:17 PM

Hi I'm new to this forum! I joined because I wanted to ask many questions regarding cars specifically the Ford Fiesta. We're planning to own a car perhaps this year or next year. As I've checked through specifications of low-priced cars such as this one, I was blown away by the looks of the Ford 1.4L 5DR Hatch, compared to Suzuki cars, Vios and Honda. Honda's price has daunted me. Suzuki's size, on the other hand, bothered me. Needless to say, VIOS popularity as taxi's brand of choice is a big turn off. Altho I have heard good things about Toyota, I'm also much concern by how the car would look on the road. So I've decided, the Ford Fiesta is the car I'm going to root for.

But when I asked about the pricing of monthly payment and down payment. I was surprised that the 99K isn't really 99K but 110K. According to the dealer, the Acts of God is included which is 10k or so. I asked him, what if I don't want that. He said, it's part of the deal. (I thought that the banner was misleading cos it says "lowest 99K down payment"). The price of this particular car is 695K PHP. So the next thing I asked him was how much would a five year monthly fee cost, he said about 13K++ a month. So that's times 60months... Then I was surprised at how much money the car would cost me 780,000+ plus the 110K down payment. Sorry, this is my first time that I considered to buy a new car. My first car was a second hand so I didn't worry much about having to pay monthly for it. I have no idea about auto loans. I initially don't want to consider buying a used car again, because the last car I had cost me a lot from maintenance and it's incessant problem with the computer box etc. So my question are: Was I quoted the right price for this car? Can I get a much lower monthly fee for five years? What should I be cautious about when dealing with Ford car dealers? Any tips and suggestion would be much appreciated!

**niky** · August 31st, 2011 06:25 PM

Sounds about right. when you pay in installments, advertised rates don't usually cover insurance unless specified, and low downpayment schemes are often accompanied by high monthlies.

That said, just paying 15% over five years (assuming 15% based on the 596k peso balance after you pay the 99k downpayment) isn't all that bad.

**Enrikez** · August 31st, 2011 07:05 PM

mag-apply ka naman sa bank, compare mo yung interest rate para mas maliwanagan ka talaga. kasi sa in-house malaki talaga ang interest rate na bigay nila, sa bank lang malaki ang cash-out mo kasi babayadan mo yung insurance at yung chattel mortage. ang madalas na free lang LTO,

**_Qwerty_** · August 31st, 2011 07:26 PM

dont go with the low downpayment.. save more.. then down ka nang mas malaki.. kung kaya 50% down.. mas maganda.. mas maliit interest mo.. mas mababa monthly..

**tidus1203** · August 31st, 2011 07:50 PM

Yeah they like to advertise those low DP. Good luck na lang sa monthly payments...

**_Qwerty_** · August 31st, 2011 08:20 PM

and dont get their in house insurance.. sobrang taga naman yan.. 10T for AOG clause! required lang may comprehensive pero hindi naman required na sa kanila ka lang kumuha.. masa madaming mas mababang insurance sa labas..

**tidus1203** · August 31st, 2011 08:25 PM

AOG is REQUIRED on cars under loan kasi if another natural disaster comes the bank/dealer can charge the insurance for the loss... You don't OWN THE CAR in a loan... They do until you pay everything!

Only a cash buyer has options. Hell! A cash buyer can even not get comprehensive insurance (not advisable) if he/she desires not to get one...

**_Qwerty_** · August 31st, 2011 08:39 PM

yes required.. pero not necessarily sa kanila kukuha.. mas madami mas mura sa iba.. 10T for AOG is too much.. mahalaga lang naman sa banko may comprehensive w/ AOG..

**tidus1203** · August 31st, 2011 08:47 PM

Depende, it could be one of the stipulations to avail of the low DP deals...

Typically outside, you need a minimum 20% DP...

In house financing can go as low as 5%...

**Foolishopher** · September 1st, 2011 12:45 PM

Thanks a lot! :D I've got early next year to decide and learn more about auto loans. Perhaps saving 50% down payment of the car's price would be a good idea. Do you have any suggestion which bank could help me and give me the lowest interest rate? My sister works with BDO. She said the lowest interest in auto loans would be PS Bank? Is that true? Thanks thanks.