To BUY or NOT to BUY a Car

[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!

[KERSMcRae]

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

2. does she live with her parents?

- - - - -
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'..

- -
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]

Since di kaya ng budget nya. Wag na.

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

[uls]

amazing

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

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

[KERSMcRae]

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.
- - - - - - -

[ghosthunter]

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]

sounds like a suzy orman show. lol.

[uls]

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

[vinj]

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).

[ghosthunter]

[meateater]

Will she get free gas from her work?
Free parking from work?

If the total cost difference between commuting and driving to work is the same, and assuming she can afford to pay for the
car without getting into financial trouble then she should go for it. Its really convenient to have a car, especially during rain.

Also in case if she does get into financial trouble because of the car, will her parents / siblings be able to help her ba? Pag may safety
net siguro siya then ok lang i-gamble. Because from the looks of it, she will not listen anyway

Just educate her that owning a car means never ending gastos. Gas, parking, car wash (or buy stuff to wash your own car), pms.

[uls]

save up and buy a late model used

cash

[KERSMcRae]

^
if 40K is a gross salary, that is almost 28K net, more or less.
if she is, as GH mentioned too, living with her parents and no other expenses, she can earn around P180K by december. I guess she can afford it. The dp is already a 'money on hand.'
- - - -
TS, is your friend knows how to drive already and have a license? meron kasi iba na nagi-start ng thread as "new driver", 'wala masyado alam sa car", etc.

[CVT]

That is the classic American Vicious Circle catching up with our youth......

14.9K:kodak:

[uls]

dami kasi naka brand new car ngayon

everybody wanna keep up with everybody hehe

[Retz]

nakalagay pala brand new and it is non negotiable.

[Bin Diesel]

To buy a car yes kasi necessity na din yan ngayon kahit papaano.
Pero yung isara mo ang isip mo na brand new lang ang gusto mo and you have limitations financially hindi na praktikal yun, you're buying a car to impress na yun and not out of necessity.

[uls]

^^

that's what i'm getting from the 1st post

what the hell is wrong with buying used? nakakahiya ba?

o baka gusto brand new para walang problema

but if you buy an excellent condition used late model wala din problema

[KERSMcRae]

^
let's wait and see if TS can convince her friend. he have 9 months to do so, with the help of our posts here.
- - -

btw, may nabasa ako dati na post dito. parang ganito.."nothing beats the smell of a brand new car...". baka ganun ang naiisip ng friend nya.

[vefyjeph]

Last 2010, I also bought a brand new car. Mataas dp ko para mapababa ang monthly amortization to around 13k. It was good for the first two months. Pero when the gas price started to increase, awts butas ang bulsa. Parang 44 pesos ata per liter nung kinuha ko yung car. Pero ngayon, 56 pesos na ata. I was earning around 40k net monthly that time. pero umabot na nag nenegative balance ata ako. so quick fix was not to use the car daily. siguro two weeks na ginagamit then 2 weeks na nasa grahe lang. mahal din kasi parking. around 100+ daily ang parking. then toll fees kapag umuuwi probinsya. Napapailing mom ko noon pag nakikita nya parking tickets ko at toll fee tickets...

ngayon tipid mode ako. wala car kasi naaksidente. 3mos na nasa casa.