Sulit Buy for Financing: Second Hand Car via Financing vs. Brand New Car via Bank Financing?

[carxynogen]

I created this thread to ask for opinion from tsikoteer which of the two is more sulit for buyers.
As you know, not all buyers has some spare cash to spare so some of these buyers will opt for financing scheme just to acquire the car.

We have brand new market which by default offer SRP price but if you compare it to second hand, some offers will result to a cost saving of at least 300k compare to buying brand new. That if you will buy as cash but sa financing mostly ng mga sellers, parang sobrang laki ng interest. Do you still think the interest imposed by these sellers if via financing is justifiable?
May iba pa bang financing institution that offers financing for second hand cars na acceptable ang rate (maybe 20-25% 3 yrs) ?

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Example Computations Banks vs Second Hand Sellers/Dealers:

Toyota Innova 2023 E (AT) via Bank Financing (Metrobank)
SRP: 1,370,000.00
DP: 274,000.00 (20%)
Loan Amount
PhP 1,096,000.00
Monthly Amortization
PhP 35,912.00
Number of Payments
36 MONTHS

In 3 yrs span, you have paid 1,292,832. Hindi pa kasali dito Chattel Fee and other fees that will required by Bank.
So may tubo si bank 196,832 after 3 yrs which is 17.9%.

Versus

2021 TOYOTA INNOVA E AUTOMATIC

��Price: ₱1,090,000

running only 13T+ kms!

ESTIMATED QUOTATION

Down Payment: ₱327,000

Monthly Amortization:
24months: ₱41,602
36months: ₱31,032

So in a span of 3 yrs, you have paid 1,117,152 + DP(327,000) to the seller/dealer.
May tubo na 354,152 si seller for offering financing which is 31.7%

[ice15]

if tama "quick" calculation ko, mas mahal ng 122K yung brand new after 3 years payment.

IMO. I would always choose brand new.

Mas mataas talaga palagi ng interest for in-house financing kasi less din requirements nila compared to banks.

Actually, kung kilala ka ng branch manager nyo, you should be able to get approval from them kahit na 2nd hand yung vehicle na binibili mo.

[carxynogen]

if tama "quick" calculation ko, mas mahal ng 122K yung brand new after 3 years payment.

IMO. I would always choose brand new.

Mas mataas talaga palagi ng interest for in-house financing kasi less din requirements nila compared to banks.

Actually, kung kilala ka ng branch manager nyo, you should be able to get approval from them kahit na 2nd hand yung vehicle na binibili mo.

So possible to? Sa Metrobank, ayaw daw nila mag accept ng financing for second hand cars.
But I never tried asking pa the manager I know if pwd ba talaga

[ale828]

Most banks will not Finance a second hand car even if they do limited lang to less than 5 years old plus the amount of paper works is way more than Brand new.

The reason for the very high rate for second hand cars is that the Banks if they will ever allow to finance the 2nd hand car is taking a very big risk in the endeavor. Big risk needs big rewards to be feasible.

[ice15]

So possible to? Sa Metrobank, ayaw daw nila mag accept ng financing for second hand cars.
But I never tried asking pa the manager I know if pwd ba talaga

just spoke to my branch/relationship manager... palalabasin daw nyang "personal loan"

[carxynogen]

just spoke to my branch/relationship manager... palalabasin daw nyang "personal loan"

Same rate for auto loan din ba mabibigay nya? Sa pagkakaalam ko, mas malaki interest sa personal loan than auto loan.

[carxynogen]

Most banks will not Finance a second hand car even if they do limited lang to less than 5 years old plus the amount of paper works is way more than Brand new.

The reason for the very high rate for second hand cars is that the Banks if they will ever allow to finance the 2nd hand car is taking a very big risk in the endeavor. Big risk needs big rewards to be feasible.

The high interest rate for second hand cars financing makes me think much better brand new nalang if ipa finance mo lang.
Reserve ang second hand for those na may cash to spare.

[ice15]

Same rate for auto loan din ba mabibigay nya? Sa pagkakaalam ko, mas malaki interest sa personal loan than auto loan.

didn't ask for details... mangungulit kasi yun

[xninjax]

Same rate for auto loan din ba mabibigay nya? Sa pagkakaalam ko, mas malaki interest sa personal loan than auto loan.

Mukhang mataas ang interest ng 2nd hand cars, halos the same ng personal loan. 12%-18%/Anum

[carxynogen]

Mukhang mataas ang interest ng 2nd hand cars, halos the same ng personal loan. 12%-18%/Anum

Yupp, so para kana lang din nagpa finance sa bayan sellers if personal loan interest din naman ipa follow nila.