How much should I be earning to avail a car or at least get a car loan?

[dos2]

[COLOR="#008080"]

Banks are loansharks in airconditioned offices, - wearing barong and elegant suits/dresses.

To the common tao, like us, they are necessary evils in our society.

A loan shark is a person or body who offers loans at extremely high interest rates. The term usually refers to illegal activity. - Wikipedia

If what you mean by a loanshark is how Wikipedia defined it, I beg to disagree. Banks are not loan sharks, in fact they are one of the major industries that makes our country work. Loan rates now for auto and housing loans are their lowest for the past 10-15 years if I am not mistaken.

What is wrong is if someone availed a loan when he knows in his heart that the loan would be too risky for him or is unaware of the implications of his purchase. One sample is selling a bnew car because the owner failed to consider gas and maintenance in his expenses. Same case on somebody being able to buy a condo's monthly amortization when he cannot pay for the real estate tax and condominum fees.

Sickness, typhoon, or other natural calamities are a different matter. I am just referring to controllable expenses.

[CVT]

A loan shark is a person or body who offers loans at extremely high interest rates. The term usually refers to illegal activity. - Wikipedia

If what you mean by loanshark how Wikipedia defined it, I beg to disagree. Banks are not loan sharks, in fact they are one of the major industries that makes our country work. Loan rates now for auto and housing loans are their lowest for the past 10-15 years if I am not mistaken.

What is wrong is if someone availed a loan when they know in their heart that the loan would be too risky for them or is unaware of the implications of their purchase. One sample is selling a bnew car because the owner failed to consider gas and maintenance in their expenses.

Same case on somebody being able to buy a condo's monthly amortization when he cannot pay for the real estate tax and condominum fees.

Sickness, typhoon, or other natural calamities are a different matter. I am just referring to controllable expenses.

Thanks for that, dear bro.

That is very enlightening. Also, it should be "loansharks".

I do not dwell with semantics.

Now, let the numbers speak for themselves....



"The measure of a man is what he does with power" LJIOHF!

25.9K:branch:

[BratPAQ]

Kulang pa, even for a 2nd hand.

[yebo]

first, magtabi ka muna ng 120k sa banko for emergencies. di mo ito gagalawin, at lalong hindi ito ang para sa kotse na inaasam mo. emergency fund mo ito, equal to 6 months of your salary. kung sakaling mawalan ka ng work meron ka money for 6 months.

then ipon, ipon, ipon for your car. hanap ka na lang ng mura na 2nd hand, yung mga 100-150k price range. tapos magtabi ka ng additional 50k for repairs.

total savings mo dapat is 6 months emergency fund + cost of 2nd hand car + 50k for repairs.

[99moves]

Compared to our parents, banks are loansharks [emoji1]

Unless your parents hate your guts at tutubuan ka ng sobra sobra pag nangutang ka ng pambili ng auto hehe.

[CVT]

Compared to our parents, banks are loansharks [emoji1]

Unless your parents hate your guts at tutubuan ka ng sobra sobra pag nangutang ka ng pambili ng auto hehe.

Kaya nga bros,- love our parents!...


"The measure of a man is what he does with power" LJIOHF!

25.9K:branch:

[kimot]

depende sa sasakyan

pero eto advise saken,

kung kukuha ka ng sasakyan at gusto mo umutang, dapat di bababa ang dp mo sa 20%(the higher the better) then yung natitirang balance, maximum na 3 yrs mo lang dapat bayaran. at just in case na mawalan ka ng trabaho meron kang pang support sa sarili mo at pangbayad ng mga monthly amortization ng at least good for 1 yr.

bukod pa dyan yung emergency funds mo.

[_Cathy_]

Compared to our parents, banks are loansharks [emoji1]

Unless your parents hate your guts at tutubuan ka ng sobra sobra pag nangutang ka ng pambili ng auto hehe.

Ang utang sa parents and grandparents most of the time naka lista sa tubig :bwahaha:

[CVT]

Ang utang sa parents and grandparents most of the time naka lista sa tubig :bwahaha:

Cathy naman......

Ito lang mga options mo:

1. Bumili ka ng bisikleta.
2. Mag motorcycle loan ka and bike carefully.
3. Ligawan mo si Cathy.

Ayos talaga ang mga payo ni bro.macsd....


"The measure of a man is what he does with power" LJIOHF!

25.9K:branch:

[_Cathy_]

[COLOR="#008080"]

Cathy naman......

My brother uses that line all the time :bwahaha:

Seriously, it would be better to borrow money from family than a bank. If you are late on payments or worse if you cannot pay at all, the car won't be repossessed and you won't have bad credit record.

If I were earning 20k gross, I would not attempt to loan a car. I will just wait until I can buy in cash or get a company car plan.

[cast_no_shadow]

Someone posted here sa board na the more you are urged to get a car (financed) the more ka dapat hindi kumuha (thought is something like that)

Yes it's a snakepit, ang dali mag avail ng fianancing without knowing the cons of it.

kaya andameng repo ng banks lalo na yung mga "low downpayments"

[robgowild]

Ang utang sa parents and grandparents most of the time naka lista sa tubig :bwahaha:

+1000. Hahah. Utang na di na natatapos bayaran,

[neni0hk]

Increase your income first. At this time mag invest ka na lang muna and don't get a liability. Why do you need a car nga pala? Pwede mo ipasok sa UberX yung car and once in a while mo na lang gamitin. Though I really discourage you to get one at this point. It is just not wise.

[kai s.]

On top of the expenses already mentioned are other stuff pa that you'll be buying for your car. Depende din siguro sa ka-OC-han mo kung gaano karami/anong brands bibilhin mo pero magastos din ang care care products. Kahit bumili ka ng car wash + wax set or pacarwash sa labas regularly, gastos yun that adds up. Even just an air freshener will cost you a few hundred each month.

[shadow]

Saan ka ba nakatira and nag work?

[nowitzki41]

Share ko lang, when i bought my own car, inutang ko full payment ng koche ko from my mother. Tapos sya binabayaran ko monthly. Nagkasundo kami sa fixed interest rate wherein, instead of having her money placed in a bank for time deposit at a lower interest rate, pinautang nya sakin. At instead na magloan ako sa bank na di hamak na mataas ang interest rate and not to mention kailangan pa magdownpayment, sya nalang inutangan ko for a much lesser interest. Win-win situation samin dalawa. Wala pa ko nilabas na money for downpayment.

[jut703]

More than just determining what income level you need to get a car, it's better if you first establish clear action plans for your personal finance. I don't have the luxury of financially comfortable parents so I started from 0, which is why I really value personal financial planning.

First and foremost, as mentioned by yebo, have an emergency fund. General rule of thumb is 6 months worth of expenses.

How do you know how much you spend each month? List it down. Personally, I'm very meticulous about this - I have an app that lists my expenses and all my money in my accounts. But even a good approximate (+/- 10% of actual) is enough to plan your finances.

Once you have your emergency fund, you can start saving up for investment. Since you know your monthly income and you know your monthly expenses, you'll also know your monthly savings. Most people equate it as (income - expenses = savings). I would suggest (income - savings = expenses). What this means is you should "pay yourself" first before spending. It's very easy to overspend, leaving you with no savings. But if you develop the discipline to put aside your savings before you even spend, then you ensure that you're growing your savings consistently over time.

Now, what do you do with your savings? Leaving it in the bank means you'll lose out to inflation. At the very least, put it in a financial instrument that beats inflation over time. Most bank UITFs are able to achieve this. If you have the time and courage, you can also learn how to invest in stocks as these offer better returns.

With your savings and investments properly set up, you can now plan your financial goals. If you wish to have a car, compute how long it would take for you to save up for one. Assuming you save 15k per month and invest this in stocks over the next 3 years, you'll have more or less 600k which is enough to buy a brand new entry-level minicar, or a decent 3 year old subcompact.

Unfortunately, even with a good personal financial plan, your current income is just way to low to achieve your goal of getting a car. I have no dependents but my monthly expenses still exceed 20k per month, and I don't live a particularly extravagant lifestyle. 20k per month gross means a net take-home pay of about 16k per month. Assuming you can live off 10k per month (very difficult), 6k per month of savings will still take 4 years to even afford a 10-year old Vios. Once you do get a car, your expenses will shoot up exponentially. Other forumers have already given you an idea of car-related costs which will be added on top of your existing expenses if you decide to push through with a car.

To sum it up, even with your current income, persevere to set up your emergency and investment funds. At the same time, work on improving your work-related competencies so you can qualify for higher paying jobs. Lastly, be patient. Realistically, I think it'll take around 5 more years for you to increase your income level to that wherein you can comfortably afford a car. Just keep calm and carry on saving, investing, and improving yourself.

[dr. d]

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i shall assume you have enough money for Da Down.
look back this past year.
see how much you were able to put in the bank.
calculate and deduct the monthly car payments.
if you still have 20K that you can comfortably put in the bank, and are sure that you can maintain that habit for the next 5 years..
puede na siguro, for a basic entry level car.
assuming that your driving habits and route are not that outrageous.

another choice would be to get a used car.
with a little luck and lots of prayer and legwork, you might yet score on that used but very good condition car...

btw!!! if you don't have a real garage or private parking in your residence,... forget it. padagdag ka lang ng trapik sa illegal parking mo..

[Yatta]

May article sa Top Gear Philippines magazine (November 2014 issue yata) tungkol sa car loans or specifically on loan defaults. Madalas mga napuputukan diyan yung mga bagong empleyado ng mga BPO.

[ninjababez]

May article sa Top Gear Philippines magazine (November 2014 issue yata) tungkol sa car loans or specifically on loan defaults. Madalas mga napuputukan diyan yung mga bagong empleyado ng mga BPO.

maski lumang empleyado ng BPO bro, dito sa office 2 na kaagad na KILALA ko ang nag default. yung isa sabi tinuloy daw ng erpat nya (i doubt).