Help me with my Budget

**cal0i** · January 13th, 2012 04:05 PM

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** · January 13th, 2012 05:57 PM

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** · January 13th, 2012 06:05 PM

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

**_Qwerty_** · January 13th, 2012 06:09 PM

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

**Retz** · January 13th, 2012 06:15 PM

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

**cal0i** · January 13th, 2012 07:39 PM

Originally Posted by Retz

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** · January 13th, 2012 08:05 PM

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** · January 13th, 2012 09:44 PM

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

**GTi** · January 14th, 2012 12:31 AM

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** · January 14th, 2012 07:21 AM

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.