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

[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

[infested_K]

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

+1. Mahirap na kung isa sa factor yung pride. Wala tayong laban dyan.

[robot.sonic]

at kung maghahanap ka ng apartment for rent, kailangan may parking slot na. dagdag gastos pa.

[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.

[malcoxx]

First of all, I didn't know I will get overwhelming support and opinions from the community, thank you!

To address some questions:
- She lives on her own, 5k apt with garage, utilities she bears on her own.
- She works night shift, hence the yearning for a personal transport. Though her apartment is les s than 10k to and fro. Safety is her primary concern.
- Company loan is out of the question because it is not a benefit she gets.
- The 40k is total take home per month, tax deductdd already.
- She is clueless with cars thats why she wants a new one. Not purely because of status symbol.
- She lives alone, siblings and parents nasa US na, mejo di sila close, so no lifeline.
- Umiiwas ako na makita at mahikayat cya sa low down, I am showing her na minsan aabot ng almost 50% ang interest ng ganun lalu na kung in house.

Papabasa ko sa kanya lahat ng inputs nyo folks, don't worry she can take the criticism.

Also, let us keep this alive, mukhang maraming mga taong nasa ganitong predicament.

[ghosthunter]

Why not ask her to sign up in Tsikot.com? She could learn quite a bit about cars and other things.

Anyway, why not opt for a 2005 Toyota Vios 1.3L? Only downside is it's manual tranny but it's affordable given you can buy them under P300K with negotiations. Dependable car and relatively frugal on the fuel. Which area does she live? ... if she doesn't know much about cars, best to have a trusted car service shop nearby for her to go to.

[GTS925]

The fact na she's still saving up for the 20% downpayment says that she can't afford to own a brand new car.

Please show her this article.

5 Mistakes You Can’t Afford to Make When Buying a Car

[GTS925]

The fact na she's still saving up for the 20% downpayment says that she can't afford to own a brand new car.

Please show her this article.

5 Mistakes You Can’t Afford to Make When Buying a Car

[fullmetal]

imho mas ok kung bibili nalang siya ng 2nd hand car sir. bukod sa mas affordable, siguradong paminsan-minsan magagasgas/mababangga niya yung kotse kasi first time niyang magkakaroon eh. tsaka mabibigay naman ng used car yung security at comfort na gusto niya. magpasama nalang siya sa marunong sa sasakyan pag titingin siya

[zap.FREEDOM]

naku, wag muna bibili kung medyo alanganin pa ang pambili, siya rin mahihirapan lang siya at the end, ipon muna ng malalaking halaga pang D/P, tiis-tiis muna sa pagcocommute, meron nga iba dyan may kotse na, nagcocommute pa e, sa mahal pa ng gasolina ngayon.


--
pero kung kating-kati na talaga siya bumili e, mag-Chery QQ na lang siya,Suzuki Alto, o kaya Chana Benni

--EDIT

[malcoxx]

With the premise that she needs to save up more before acquiring a vehicle.
How much is a safe amount for her to have as back-up funds + 20 / 30% down of a 600k bnew car?
---
The second hand route is something that she should study as well. Hope she gets convinced its still safe to buy one with a trusted mechanic.

What is a safe year / model with a decent price you can recommend? GH's idea of a 2nd hand car sounds good.

[dr. d]

people who know next to nothing about cars, will naturally want a brand new car... will insist on a new car! i have experienced car breakdown at night with my ex-taxi of a car, so i know how terrifying the feeling is... (ok ok.. it wasn't terrifying. i saw it as a challenge. actually, i was more angered than terrified. angered because i suckered myself into buying it.. all the signs were there..)
my first question is, how much can this car-owner-to-be, realistically afford to spend monthly?
gas alone, i estimate she'll have to spend 3300 bucks monthly (or 39,600 bucks a year). then, one oil change a year, that's 1,500 a year. then the annual rehistro, that's 2000 bucks. car insurance, 20K.. (tpl lang ako; nobody wants to insure my 15 year old car.)... then, there's the monthly car payments. magkano... 15K? 20K?... by gosh! she'll have to learn how to eat cardboard...
hija, get a used car na lang... marami diyan for less than half the price of a brand new car.. mas mababa pa ang depreciation..
the guys in tsikot.com can sell you his own used but babied car, or refer you to an acquaintance selling his used but uber-reliable car.. and also to an honest repair shop for your repair needs. don't worry. modern cars don't break down too often anymore. and the money you saved vis a vis buying that new car, can be put to good use for repairs.
now, am i allowed to mentioned the car refered to by some, as "boringly reliable"?..

[Gecko Guy]

Second hand car that has a good history and was well taken cared of by its owner is the best alternative for your friend TS.
Getting a bnew car is like having another baby, gagastos at gagastusan mo sya sa ayaw at sa gusto mo.

[GTi]

First of all, I didn't know I will get overwhelming support and opinions from the community, thank you!

To address some questions:
- She lives on her own, 5k apt with garage, utilities she bears on her own.
- She works night shift, hence the yearning for a personal transport. Though her apartment is les s than 10k to and fro. Safety is her primary concern.
- Company loan is out of the question because it is not a benefit she gets.
- The 40k is total take home per month, tax deductdd already.
- She is clueless with cars thats why she wants a new one. Not purely because of status symbol.
- She lives alone, siblings and parents nasa US na, mejo di sila close, so no lifeline.
- Umiiwas ako na makita at mahikayat cya sa low down, I am showing her na minsan aabot ng almost 50% ang interest ng ganun lalu na kung in house.

Papabasa ko sa kanya lahat ng inputs nyo folks, don't worry she can take the criticism.

Also, let us keep this alive, mukhang maraming mga taong nasa ganitong predicament.

Kung ganon, I would advise that the newest car she get is a 2010 or 2011 car. This way it has already undergone the initial depreciation so dun palang malaki na ang kanyang masa-save. Since the car is just around one year old, it is basically almost new. There wouldn't be many things to look out for and you are saved the hassle of having to break in the car. And then this way she would be able to get a better spec car as opposed to buying brand new.