Second hand cars with loan amortizations left....

[tidus1203]

When I browse on the 2nd hand market (by the way I am not looking for a 2nd hand car, I just wanted to be up to date with the 2nd hand pricing) I see some people selling their cars with loan balances still unfinished.

Seriously, do people actually buy these things? I mean will it even sell cause me thinks a rational person wants to buy a 2nd hand car and the 2nd hand car only not with debt attached with it.... Me thinks kasi sobrang lugi ka since you are getting a used car and still paying for an amortization balance for a new car.

On the seller's side naman, why are they selling? Where they too optimistic about their finances and can no longer afford the monthly bill?

[ThePatriarch]

The sellers usually have reasons of their own... some are migrating abroad... some are pissed off sa service... some are upgrading their rides or nasawa na lang... and some had bad luck in their finances, to name a few.

In negotiating for the sale, the buyer should consider the value of the car and the remaining amount of the amortization... let us presume that the resale value of the car is 500k with two years remaining at 10k per month... the buyer should pay the seller 260k since the former shall pay the bank 240k for the amortization. I hope malinaw ang explanation ko...

[tidus1203]

Ok that's fine and all but from a buyers point of view I still don't see any financial sense in getting these cars with loans still attached. The only way I am getting something like this is if the seller is willing to take a huge hit (maybe if he deducts the interest cost in his selling price, then it could work). Cause remember you are going to continue paying the amortization of the value of a new car with interest factored in.