Results 1 to 8 of 8
-
Verified Tsikot Member
- Join Date
- Aug 2009
- Posts
- 19
August 6th, 2009 10:25 PM #1(A re-post)
Hello. Can you tell me why Financing buyers get a higher priority (re: discounts, unit acquisition, etc) as compared to Cash buyers?
I know one reason, because in the long run, for financing, the buyer will be paying more of the intended price, and thus the incentives..
I am also aware that value of money diminishes over time..
I’ve been to a car dealer before and they give priority to In-house financing as compared to cash buyers, and it bothers me because I am planning to buy through cash. Please kindly enlighten me on this matter.
Thanks
-
August 6th, 2009 10:34 PM #2
Because they make more money on financing buyers via interest payment. They win, you (the buyer) lose because you end up paying as much as 30% more for the car when all is said and done. So P1M car becomes P1.3M as far as the car company and its finance arm is concerned.
PAY CASH! Don't let their freebies trick you because those are just pinches of salt compared to the total money you will lose doing financing. If you want an in-demand model where dealers sleazily jump financing buyers in the line just wait it out or buy the competitors product. Never give in!
-
Verified Tsikot Member
- Join Date
- Aug 2009
- Posts
- 19
August 6th, 2009 10:55 PM #3Yeah, since I (actually, with the help of my Dad) have the cash by the end of the year, I will probably push on buying through cash since I am not on the rush of acquiring a new car (borrowing dad's pickup atm ).. Still choosing on City or Jazz, but may look for other brands/newer models on the last quarter..
Anyway, me thinks there will be less hassle for cash payment also..thanks for reinforcing the idea of disregarding those candy-coated conveniences
Thanks a lot
-
Verified Tsikot Member
- Join Date
- Apr 2008
- Posts
- 15
August 7th, 2009 12:30 AM #4You want to know why? Because the dealership only earns Php 3,000.00 for every car that is being sold as cash.
For good gesture, try to get the insurance at least from your SA. Just haggle the price a little bit, otherwise, you might encounter an SA who is not willing to sell you a car unless they are after the quota not the profit.
-
Verified Tsikot Member
- Join Date
- Aug 2009
- Posts
- 19
August 8th, 2009 02:17 AM #53k/car? Is that gross or net income? If that's a fact, it is surprisingly low..
I did some research and if that's the case, a honda dealership earns approx. 160k PhP per month..
basis: http://www.gmanews.tv/story/166939/R...ightly-in-June
Anyway, I'll take note of your advice. Thanks
-
Verified Tsikot Member
- Join Date
- Oct 2005
- Posts
- 177
August 8th, 2009 02:39 AM #6
3000 is probably the commission of the agent.
I have a friend that works in the mitsubishi plant. they sell their cars to the dealers at 200k-300k less than the SRP.. thats why dealership stays upfloat even if they sell only 10 cars per month..thats 2M to 3M pesos !
-
August 8th, 2009 07:39 AM #7
Yeah yung P3000 sa agent yun it can even go as low as P1000 depende sa model. Yung mga best selling cheap models mga P1000 lang kikitain nila doon...
-
Verified Tsikot Member
- Join Date
- Aug 2009
- Posts
- 19
August 8th, 2009 09:58 AM #8Oh.. I thought he meant the whole dealership itself.
Well, if it's the commission of the agent, it's not bad at all.
Thanks for answering. We're kinda getting off-topic though.
(topic was answered anyway)
The Ten Commandments has been a traditional part of the Holy Week programming on local channels,...
Traffic!