Help me with my Budget

[cal0i]

Disclaimer: I know there has been numerous threads already about this (last thread was 2010 I believe). But my topic is more specific about getting the most (best car) out of my budget.

To start:

1. My budget for downpayment is only 60k (Max). And I have seen some reasonable low downpayment promos.
2. My budget for monthly amortization is only 18k (Max). Majority of the options I have seen pushes me to 60 months term. Which I am ok with.

I apologize for the budget, that’s the best deal my wife gave me out of our family budget…


3. I currently drive an 03 Ford Lynx Ghia which is well kept and maintained. And I am keeping it, the new car I’m planning to buy will be my 2nd (toy) car.


After numerous searches in Google and a few visits to car dealers. I have narrowed my choices to two cars. 2011 Suzuki Swift (1.4 Ma) vs Mazda 2 hatchback(1.3 Ma)

4. I have seriously considered Honda Jazz and Toyota Yaris, but neither offers low DP options.. strictly 20%. Lowest DP for Ford Fiesta (1.4 Ma) is 99k.


Since I am down to two options, here’s the breakdown:

2011 Suzuki Swift 1.4 VVT Manual
Downpayment – 48,000 All in (Chattel Mortgage, 3 years LTO, Compre Insurance with AOG + regular freebies)
Monthly Amortization (5 years) – 17,485
Total Value – 1,097,100.00

Plus points: TV/DVD Touch Screen Monitor, conversion panel, Steering Control Module, 2 eye backup sensor, reverse camera and rainvisor set.


2012 Mazda 2 hatchback 1.3
Downpayment – 48,000 All in (Chattel Mortgage, 3 years LTO, Compre Insurance with AOG + regular freebies)
Monthly Amortization (5 years) – 16,371
Total Value – 1,030,260


There’s a difference of 66,840. Looking at the package alone leads me to get the swift. Based on the reviews, both are good cars. Comfortable seats, nice handling, responsive engine. I believe that the swift would give me that practicality and quality that fits my tight budget? Or am I missing something here? Value of car, maintenance and parts after 5 years? After sales service?

One example would be the shocks, I’ve read that stock shock of swift costs around 6k, I’m pretty sure Mazda’s are cheaper probably around 4k or less. Or do we have KYB for swift (Mazda would have one for sure)?


Help me guys!

[yapoy86]

since gusto mo yung "toy" car... mas mukhang toy car yung swift... if i'm not mistaken timing chain ang swift?? correct me if im wrong.. pero maganda yang engine ng swift...

[Bin Diesel]

Ayoko na paguluhin pa isip mo sa pagsusuggest ng iba pang kotse mag Swift ka na.

[_Qwerty_]

save for some more months and increase your downpayment.. low downpayment means higher interest for monthly payments..

[Retz]

Mazda 2 hatchback for me if i got to choose between those two(2).

[cal0i]

Mazda 2 hatchback for me if i got to choose between those two(2).

Hi bro, im hoping you could share the factors you considered when you bought it


Thank in advance

[renzo_d10]

Suzuki Swift ako.

Pero sir kung kaya mo naman mag-shell out ng mas malaking dp, although it may take you several months to save, much better. Parang ako nanghihinayang duon sa interest na na-gain eh. Halos kalahati na.

[ChunkyLover]

Forgot to include a budget on the fee's included in the loan...

[GTi]

I agree with bro renzo's post. I suggest you save up some more for the downpayment, or maybe ask your wife to release some more funds so that you will not be wasting so much on interest. Imagine naman... You will be paying a total of over 1M for a base model subcompact hatch. Samantala that kind of money could've gotten you a midrange to top of the line compact sedan when paid in one go.

Pero between the two, might as well get the Swift. That is, assuming that this car is for keeps and also that you are not bothered by Suzuki's rather sparse dealer network.

[keithdb]

Get the swift.
But if it were me, I would save for a higher downpayment to lessen interest cost. Just imagine paying 500,000 interest in five years.
Just to illustrate:
say save for 12 months: 18,000 * 12 = 216,000 + 60,000 = 276,000 for downpayment next year.
Assuming that the swift would cost 740K by that time, You can pay maybe 40%(296K) so that leaves you with around 440K for financing at lets say 38% in a 5 year loan.
If you calculate, your total payments would have been: 296K + 440K +(440K * .38) = 900K approximately.
That is a savings in interest of 150K. Savings would be bigger if you can negotiate for lower interest rates.

[keithdb]

360K interest in 5 years pala not 500K.
Mods, save button on edit is not working.

[cal0i]

Hi Guys, thank you for the eye opener.. I really appreciate it.

I went back to suzuki e.rod earlier to ask for a computation for their standard 20% downpayment.

ang laki nga pala talaga ng difference sa interest.. nakaka-silaw lang kasi yung low down, but in the long run, talo ka sa interest charges over 5 years.

It looks like back to the old drawing board ako. Pag-uusapan muna namin ni misis, I'll show her the comparison of interest rates para maliwanagan din sya.

Thank you guys!


although kung bibigyan nya ako ng 150k to 180k pang down.. mukhang dadami ulit ang options ko ah

[jaymd]

wag ka sa in house financing ng suzuki. mag shop around ka sa mga bangko kun san mura interest rates

[vinj]

Hi Guys, thank you for the eye opener.. I really appreciate it.

I went back to suzuki e.rod earlier to ask for a computation for their standard 20% downpayment.

ang laki nga pala talaga ng difference sa interest.. nakaka-silaw lang kasi yung low down, but in the long run, talo ka sa interest charges over 5 years.

It looks like back to the old drawing board ako. Pag-uusapan muna namin ni misis, I'll show her the comparison of interest rates para maliwanagan din sya.

Thank you guys!


although kung bibigyan nya ako ng 150k to 180k pang down.. mukhang dadami ulit ang options ko ah

Good decision. Always add up your total cost at the end of the day and this will help you and your wife decide; kung isipin mo rin if you save up a little, your options and budget will really open up.

BTT: The Swift is a nice toy car in my books. Good design which seems to age well and driving impressions are good.

[mda]

+1 on looking for banks to finance the car. Inhouse financing always more expensive.

Except most banks require about 20% DP.

[renzo_d10]

Stick with the Swift, gather more funds for the DP. Ignore mo yung ibang alternatives na pasok dun sa nakuha mo na funds kasi most likely, ang ma-shell out mo for a better* car eh para lang sa pinakamababang DP. So talo ka pa rin sa interest rates. Pero kung malaki na yung nagather mo na funds for DP tapos ilaan mo para sa swift. Eh di mga 40% DP na siguro yun, so mas mababa ang interest.

[yapoy86]

50% down tapos swift... ayos.. ganda ng porma ng swift.. no need for extra blings

[mad_max168]

Small cars for toy cars might be a waste of money specially if you have kids or expecting some soon... It's a miracle you still maintain a lynx too... Plan for the future I'd say.

[galant E SS]

Small cars for toy cars might be a waste of money specially if you have kids or expecting some soon... It's a miracle you still maintain a lynx too... Plan for the future I'd say.

i agree with mad_max168. TS, why bother buying a 2nd car as your toy car when you already have a well maintained ford lynx that serves you well? then, you will buy a brand new car in installment and be indebted for 5 years. why don't you just save your money for your family's future? . . . just my friendly advice bro.

[rockiee_s]

hi. i just finished the exercise of comparing all interest rates of bank loans. these are the lowest rates i got:

UNIONBANK
EASTWEST BANK
PSBANK

the other factor which u will need to consider is the attitude of the bank loan officer. merong mabait, merong makupad, merong masungit, merong strict sa requirements.

hope this helps.

if i pushed thru with my in house financing, i would have spent more than 200k in buying the same car.