Mode of payment when buying a used car

[Bry]

Is it true that the minimum downpayment is 30% when buying a used car? O depende lang sa usapan yun?

[niky]

Are you going through a secondhand dealer? I think 30% is doable... depende naman... kung mababa lang ang presyo, kawawa siya kung 10% lang.

[Bry]

Not sure pa if second hand dealer or direct sa owner. I was thinking more like 20% downpayment sana, tapos bank financing.

[orly_andico]

bank financing is tough on 2nd hand cars.

most banks require 30% equity, plus the interest rates are higher, plus the car cannot be more than 5 years old.

oh yes the bank will not lend you 70% of the price of the car, they will lend you 70% of their assessed value of the car. you have to pony up the remainder.

plus the terms are shorter and the interest is higher.

the net result is, you will end up paying a monthly amortization pretty close to that if you'd gotten a brand-new car with a longer term.

example:

a 2003 Altis 1.6E MT goes for 585k (yeah terribly high toyota resale value). assuming the bank assesses it at that price (big assumption) you're looking at a 175K downpayment/equity, and 12K/month for 48 months, based on BPI's published rate which is 39.01% for 48 months.

a 2006 Altis 1.6E MT (well it's the same car really) goes for 780k. a 20% equity is 156K. and you'll be paying roughly 15K/month for 60 months, also based on BPI's published rate of 41.64% for 60 months.

as you can see, there's not a huge difference there (3K/month) and the downpayment on the used Altis is even bigger.

[strydent]

langya, e di dun n ako sa bago, dami pang hinihinging requirements sa used car na financing eh....

[orly_andico]

that's true. pero kung malakas mag-depreciate nung car (e.g. 2001 Lynx still fits the requirement and is like 400k nalang) medyo makakatipid ka dun sa financing ng used car. on the other hand, in my opinion kung mag-fi-finance ka ng used, dapat medyo bago-bago pa (e.g. 30T km or less ang tinakbo) otherwise magbabayad ka pa ng mga maintenance. mag bago ka nalang.