car loan

[misseksaherada]

hi newbie here, ask ko lang po anung pagbabasehan ng starting date ng monthly amort mo. ung date ng downpayment or date ng releasing ng sasakyan. salamat sa sasagot.

Sa case ko Sir gelo, simula nung nag down ako umandar na ammortization ko.. may dalawang option binigay sakin.. nakalimutan ko na yung term.. Errrr.. basta yung isa 1 month advance at yung isa hindi.. sa downpayment ko kasabay na nung 1 month advance ko..

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[ray_noel]

Sa case ko Sir gelo, simula nung nag down ako umandar na ammortization ko.. may dalawang option binigay sakin.. nakalimutan ko na yung term.. Errrr.. basta yung isa 1 month advance at yung isa hindi.. sa downpayment ko kasabay na nung 1 month advance ko..

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OMA term nung may one month advance. Mas maliit interest...


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[ninjababez]

based po sa reviews nga ganun daw po BPI hehehehe pero mas ok na lang din Sir kung wag na lang ako mag claim.. Oks lang sakin magbayad.. basta safe.. [emoji41] [emoji56]
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sa akin naman, more on the side of "wala kasi ako pambayad sa mabangga ko" kaya kumukuha parin insurance kahit matanda na auto ko hehehe

[misseksaherada]

sa akin naman, more on the side of "wala kasi ako pambayad sa mabangga ko" kaya kumukuha parin insurance kahit matanda na auto ko hehehe

After ng tie up insurance ko magtanong ako ng latest na ok sa claims (tagal pa..) .. agree po ako Sir Ninja, mas ok pa din talaga may insurance.. [emoji106]

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[ray_noel]

Hi tsikoters, i plan to settle my car loan this year instead of next year and when i asked the bank about my remaining payment they sent me the statement of account summary...

they put a bank service charge of 12k.

Do you happen to encounter this charge when settling your car loan?

Tried to email them and 10 days still no answer, tried to call their customer service they cannot provide me the answer.


I cannot remember before in my ecosport if i have this charge from different bank after settling the car loan.


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[tarzegetakizerd]

Hi tsikoters, i plan to settle my car loan this year instead of next year and when i asked the bank about my remaining payment they sent me the statement of account summary...

they put a bank service charge of 12k.

Do you happen to encounter this charge when settling your car loan?

Tried to email them and 10 days still no answer, tried to call their customer service they cannot provide me the answer.


I cannot remember before in my ecosport if i have this charge from different bank after settling the car loan.


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baka yan yung penalty dahil ica-cash mo na po yung remaining amount. the bank doesn't like it because mababawasan kita nila. Kaya ipepenalize nila yung advanced cash payment

[papi smith]

Yes, most probably present value of opportunity loss.

[ray_noel]

baka yan yung penalty dahil ica-cash mo na po yung remaining amount. the bank doesn't like it because mababawasan kita nila. Kaya ipepenalize nila yung advanced cash payment

Yes, most probably present value of opportunity loss.

Thanks for clarifying... parang termination fee ng loan kasi hindi ako tumupad na 3years dapat...

Additional question, im trying to compute if how much interest i’m paying... ito yung payment history...
32,778x22months=721,116
Remaining balance=425,827
Total amount paid=1,146,943(14.6% interest rate)

I remember 18% interest ko for 3years... hindi ba dapat around 12% lang sana yan? 18%/3years... sa feb pa mag start ang 3years payment ko... Pwede ba ito contest?



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[17Sphynx17]

Thanks for clarifying... parang termination fee ng loan kasi hindi ako tumupad na 3years dapat...

Additional question, im trying to compute if how much interest i’m paying... ito yung payment history...
32,778x22months=721,116
Remaining balance=425,827
Total amount paid=1,146,943(14.6% interest rate)

I remember 18% interest ko for 3years... hindi ba dapat around 12% lang sana yan? 18%/3years... sa feb pa mag start ang 3years payment ko... Pwede ba ito contest?



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That's not how you compute it. Cumulutative interest ang method ng compute dito, not like how you compute annual interest rate sa time deposit or savings account.

Thats why on the start you can see you are paying more interest from your monthly payment amount compared to your principal amount. But as you continue paying interest share paid goes down and your principal amount share paid goes up compared to the previos amount for that monthly payment you made.

Yung sinabi sa iyo na 18% interest for a 3 year loan (I assume this was the sales pitch sa iyo) is basically the simplified way to get from "A to B". So nagloan ka for a 1m amount, at the end of 3rd year, 1,180,000php ang total binayaran mo all in all. Just to simplify it to a layman, but hindi ganun pag compute kasi nga cumulative interest is what actually applied to the loan.

Yung sa compute mo, nalimutan mo add yung OMA payment mo kaya kala mo 14.6%. IF you add the 32,778 OMA payment, makukuha mo yung as per sales pitch sa iyo na over 3 years, 18% interest applied to your 1m loan.

EDIT: re cumulative interest. You can also look at it this way why hindi siya 6% Year on year to get a total of 18% over 3 years.

You can easily see how much interest was charged to you during the first year for when you started with a 1m loan.
Year 1, by the end of year 1, you paid a total interest of 98,181.31php in interest for the 1m amount, of what could be interpreted as an annual interest rate of 9.8% for quick maths. (basing on the feb to feb interest amount paid)

At the start of year 2, you had a remaining principal amount of 672,067.31php that needs to be paid for Year 2 naman.

I know hindi din correct to say 9.8% is what applied kasi nga cumulative interest rate, but hindi ko hawak ngayon yung finance app sa windows 10. May app siya dun for amortization computation of loans to easily get the cumulative rate. Hehe! But it provides a better glimpse lang of how the interest was applied at the start.

Hope that clears it up.

[ray_noel]

That's not how you compute it. Cumulutative interest ang method ng compute dito, not like how you compute annual interest rate sa time deposit or savings account.

Thats why on the start you can see you are paying more interest from your monthly payment amount compared to your principal amount. But as you continue paying interest share paid goes down and your principal amount share paid goes up compared to the previos amount for that monthly payment you made.

Yung sinabi sa iyo na 18% interest for a 3 year loan (I assume this was the sales pitch sa iyo) is basically the simplified way to get from "A to B". So nagloan ka for a 1m amount, at the end of 3rd year, 1,180,000php ang total binayaran mo all in all. Just to simplify it to a layman, but hindi ganun pag compute kasi nga cumulative interest is what actually applied to the loan.

Yung sa compute mo, nalimutan mo add yung OMA payment mo kaya kala mo 14.6%. IF you add the 32,778 OMA payment, makukuha mo yung as per sales pitch sa iyo na over 3 years, 18% interest applied to your 1m loan.

Thanks!!! Ang pagka intindi ko kasi equal interest rates per annual...pero hindi pala... sige thanks! Settle ko na ito... still 14.6 vs 18% is better...

also, makakaligtas ako sa kanila sa comprehensive insurance nilA, free daw first year pero, nidivide lang sa 3years pala...

Thanks thanks


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[papi smith]

Which is why it is better to pay in cash, I assume that kaya mo ipunin ung loan mo earlier than now kasi you even paid interest and the balance of the principal you are paying now is even had higher than what you already paid (maybe, guess lang). So kung dinelay mo lang siguro ng 1 year ang purchase kaya mo na i- cash, plus add to the fact aabutan mo pa siguro ang pandemic discounts, well, even if di mo inabutan, kaya mo pa rin ma cash Kasi I see your posts na may pang invest ka pa sa stocks recently.

Yan ang katwiran ko sa wife ko, ung babayad natin na interest, yun ang kita ng pera natin, and we don't earn that high an interest rate in any of our placements.

[carxynogen]

Which is why it is better to pay in cash, I assume that kaya mo ipunin ung loan mo earlier than now kasi you even paid interest and the balance of the principal you are paying now is even had higher than what you already paid (maybe, guess lang). So kung dinelay mo lang siguro ng 1 year ang purchase kaya mo na i- cash, plus add to the fact aabutan mo pa siguro ang pandemic discounts, well, even if di mo inabutan, kaya mo pa rin ma cash Kasi I see your posts na may pang invest ka pa sa stocks recently.

Yan ang katwiran ko sa wife ko, ung babayad natin na interest, yun ang kita ng pera natin, and we don't earn that high an interest rate in any of our placements.

I have the same justification on why I paid in cash rather than pay some of the amount via bank loan.
Ang ginawa ko nalang ngayon is supposedly the monthly that I should have paid to the bank, dineduct ko nalang monthly sa salary ko at transfer it to my other bank account na hindi nagagalaw.

In 3 yrs, I will be getting back what I should have loaned to the bank.
Plus, I earned the interest which is supposedly makuha sana ng bank.

[ray_noel]

Which is why it is better to pay in cash, I assume that kaya mo ipunin ung loan mo earlier than now kasi you even paid interest and the balance of the principal you are paying now is even had higher than what you already paid (maybe, guess lang). So kung dinelay mo lang siguro ng 1 year ang purchase kaya mo na i- cash, plus add to the fact aabutan mo pa siguro ang pandemic discounts, well, even if di mo inabutan, kaya mo pa rin ma cash Kasi I see your posts na may pang invest ka pa sa stocks recently.

Yan ang katwiran ko sa wife ko, ung babayad natin na interest, yun ang kita ng pera natin, and we don't earn that high an interest rate in any of our placements.

Thanks bruh... if i just saw this pandemic coming baka nga idelay ko kasi less travel ngayon... tapos dumating pa yung bagong mux... [emoji1787][emoji1787][emoji1787] naka eps na... pambihira. Pero next time na cash na ako kay telluride... [emoji2][emoji2][emoji2]


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[17Sphynx17]

Thanks bruh... if i just saw this pandemic coming baka nga idelay ko kasi less travel ngayon... tapos dumating pa yung bagong mux... [emoji1787][emoji1787][emoji1787] naka eps na... pambihira. Pero next time na cash na ako kay telluride... [emoji2][emoji2][emoji2]


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I wouldn't say having a car loan to pay your obligation for the purchase is bad in itself. I would however, consider shorter term car loans of 1 to 2 years max so that the interest is not "Too large" in the grand scheme of things.

There are reasons why those with investments recommend pursuing options where they loan instead of immediately paying in full for an asset. It is because they believe they can use the cash value during the loan term for other things to "work for them" better than just paying for the purchase outright.

Parents taught me that if I plan to buy a car, I should already have all the money to purchase it plus the buffer yet still get a car loan with the 1 to 2 year option as the options to consider. Reason being is not just for possible use in investment, but also to use that "currently available" cash on hand for an emergency instead should something happen in the middle of the loan term, be it for personal, business or medical emergency.

But that's just a matter of preference as well and how you plan to utilize best your finances

If you do get a Telluride, Thumbs Up. I really like that car based on all the videos I've seen. I like it more than its twin, the Palisade.

But, I or my family have no plans in the near term to acquire a new family vehicle. But I foresee we will explore buying an electric car with limited mileage for city driving in maybe 5 years that you can charge with an outlet (no special accessories and draws less than 10amps). I think an electric car with a 100-150kms max "stored" range is more than enough for a week's worth of city driving for us. We won't sell our petrol/diesel cars anyway. So if we need more range, they are still there. Maybe minus 1 vehicle only. =) It won't surely be a Leaf (in its current form) though as that doesn't have active cooling.

[ray_noel]

So i received a response from my bank.

[qoute]

Please be advised that in case of pre-termination of your auto loan, you also need to settle the 1st year free insurance promo of your motor car insurance amounting to P42,398.89 and this will be added to your payoff amount.

[/qoute]

I need help guys. As in!

In this true? A free 1 year insurance may not be free upon early/pre-termination of the car loan?

So aside from 3% pre-termination fee, i have to pay the 1st year free insurance.

Thanks in advance.


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[dreamur]

So i received a response from my bank.

[qoute]

Please be advised that in case of pre-termination of your auto loan, you also need to settle the 1st year free insurance promo of your motor car insurance amounting to P42,398.89 and this will be added to your payoff amount.

[/qoute]

I need help guys. As in!

In this true? A free 1 year insurance may not be free upon early/pre-termination of the car loan?

So aside from 3% pre-termination fee, i have to pay the 1st year free insurance.

Thanks in advance.


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Read the fine prints bai. I think you are required to pay the insurance premium for the 2nd and 3rd year, so preterminating your loan before the 3rd year deprives the insurance company the revenue stream, so they need to recover the first year coverage that was initially given for free.

[dr. d]

So i received a response from my bank.

[qoute]

Please be advised that in case of pre-termination of your auto loan, you also need to settle the 1st year free insurance promo of your motor car insurance amounting to P42,398.89 and this will be added to your payoff amount.

[/qoute]

I need help guys. As in!

In this true? A free 1 year insurance may not be free upon early/pre-termination of the car loan?

So aside from 3% pre-termination fee, i have to pay the 1st year free insurance.

Thanks in advance.


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if it's in the contract, then it's in the contract.
if it's not in the contract, you may contest it, and you'll probably win.

but do we really want a fight with anyone?

[papi smith]

That's what "free insurance" is for [emoji38]

[ray_noel]

Thanks everyone!!! I already settled this sa bank... overall 40k less sa total car loan ang nabayaran ko... that’s including my prem insurance next year + those other charges....

next year, save up na muna and isas sa major expenses...


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[papi smith]

Just thinking out loud, ano kaya present value ng 40k na yan? But I agree, it is already savings, lalo na wala ka naman paggagamitan ng cash on hand mo. Kami di pa nakapag save, dami pa gagastusan sa bahay, tiling ng garage, landscape, pundar ng mga gamit, etc. Pinilit lang namin makalipat at baka bigla na naman topakin si boss at mag declare ng ECQ.