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) ?

-----------------------------------------------------------------------------------------
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.

[dr. d]

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) ?

-----------------------------------------------------------------------------------------
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%

my opinion,

never mind how much money the bank made out from you. "wala na tayo don."
what i would like to know is, "how do i feel about my new acquisition?"

we paid less for the used car.
is the price difference worth it?

[carxynogen]

my opinion,

never mind how much money the bank made out from you. "wala na tayo don."
what i would like to know is, "how do i feel about my new acquisition?"

we paid less for the used car.
is the price difference worth it?

Sa financing, parang mas sulit if brand new nalang kukunin since a few thousand pesos nalang difference sa total cost na babayaran after the financing term ends.
Brand new pa unit makukuha.
Unless if may option sa second hand car financing that will somehow at least give us kahit mga 20-25% man lang na interest.
Mostly sa mga offer, naglalaro from 40% up ang interest.

To add up, reason for going second hand is if you plan to purchase Diesel SUVs/PPVs on a very limited budget.
Didn't expected that the financing term from second hand sellers (2 yrs older car) is closer to the brand new rates na.
Wala ka na kasing ma purchase na brand new Diesel SUVs/PPVs at 800k-1M range so sa second hand market na talaga need maghanap.

[_Qwerty_]

it's not advisable to finance a 2nd hand car kasi mataas ang interest rate nyan hindi sya katulad nang auto loan for brand new na can go below 5% per annum.

regarding financing naman new car.. i always compute for the total cash out after the loan...

very competitive na ang market ngayon.. minsan kahit in house / bank finance mababa na din..

take this all in promo..



SRP is 1,169,000
DP is 78,000
Loanable amount is 1,091,000
Monthly for 60 months at 21,885
Interest of 20.35% for 5 years (or 4.07% per annum)

Total payment after 60 months is 1,313,100

halos same na din kung sa bank ka kukuha.. mag down ka pa nang 20% sa bank..

[carxynogen]

it's not advisable to finance a 2nd hand car kasi mataas ang interest rate nyan hindi sya katulad nang auto loan for brand new na can go below 5% per annum.

regarding financing naman new car.. i always compute for the total cash out after the loan...

very competitive na ang market ngayon.. minsan kahit in house / bank finance mababa na din..

take this all in promo..



SRP is 1,169,000
DP is 78,000
Loanable amount is 1,091,000
Monthly for 60 months at 21,885
Interest of 20.35% for 5 years (or 4.07% per annum)

Total payment after 60 months is 1,313,100

halos same na din kung sa bank ka kukuha.. mag down ka pa nang 20% sa bank..

Ang baba nga, kaso sa Livina unit lang ata yan.
Sa ibang model kaya, same parin ba ang rate?
Baka inooffer nila yan dahil walang masyadong bumibili sa Livina model nila.
Kinain na ng Xpander yung market na yan.

[Walter]

Plus there could be other hidden charges ...

[dr. d]

the chattel mortgage fee,
the getting-out-of-mortgage fee,
the "waiting fee" if one does not attend to the latter above early enough...

truly,
nothing is free in the auto industry.
and they are very good at squirreling their various fees.

[carxynogen]

the chattel mortgage fee,
the getting-out-of-mortgage fee,
the "waiting fee" if one does not attend to the latter above early enough...

truly,
nothing is free in the auto industry.
and they are very good at squirreling their various fees.

Haven't tried auto loan pero may getting out of mortgage fee ba yung bank loan?

[_Qwerty_]

chattel mortgage is registered sa registry of deeds.. after payment of loan, you need to cancel the chattel mortgage.

Haven't tried auto loan pero may getting out of mortgage fee ba yung bank loan?

[kapitan88]

sa repossessed cars ng bank, need bayaran yung cancellation ng mortgage nung first owner, then lipat ang mortgage sa name mo, after ng loan, may clearance to cancel mortgage, pag fully paid unit na 2nd hand ang ma-loan mo, need naman ng mortgage sa iyo.

like what they said, mataas ang interest sa 2nd hand car, if compare mo ang total payments mo after the loan, konti na lang siguro ang maging difference kesa getting a new one, mas sigurado ka pa sa unit na makukuha mo, kasi sugal din minsan ang 2nd hand, baka may hidden sakit-ulo na yan. But if you get a very good offer sa 2nd hand, and you know what to check sa mgs pre-owned, it is worth the gamble.

the chattel mortgage fee,
the getting-out-of-mortgage fee,
the "waiting fee" if one does not attend to the latter above early enough...

truly,
nothing is free in the auto industry.
and they are very good at squirreling their various fees.