car loan

**puroy** · July 4th, 2007 04:56 PM

take note, magkaiba ang cedula sa barangay and city hall. yung sa barangay, resident certificate which is 10 pesos lang ata. while sa city hall will depend sa taxable annual salary mo. ang question ko lang, ano ba kailangan sa bank?

**devdevlin** · July 4th, 2007 05:54 PM

Originally Posted by puroy

take note, magkaiba ang cedula sa barangay and city hall. yung sa barangay, resident certificate which is 10 pesos lang ata. while sa city hall will depend sa taxable annual salary mo. ang question ko lang, ano ba kailangan sa bank?

natanong ko to dun sa sales officer nun bank na balak ko mag car loan. sbi sakin it doesnt matter how much yun binayaran mo sa cedula. ang important yun serial number nun papel na ilalagay sa kontrata na ppirmahan mo. tama ba to mga chief?

**Galactus** · July 4th, 2007 06:07 PM

Originally Posted by devdevlin

natanong ko to dun sa sales officer nun bank na balak ko mag car loan. sbi sakin it doesnt matter how much yun binayaran mo sa cedula. ang important yun serial number nun papel na ilalagay sa kontrata na ppirmahan mo. tama ba to mga chief?

Yup, sad but true. Actually, yung ibang borrowers nga namin, kahit alam mong mayaman, yung binabayaran nila sa cedula, less than P50. Yung iba pa, serial no. lang ang binibigay, pag alam nilang wala silang cedula.

Parang useless naman kasi ang cedula, I don't think anybody gives a hoot. (Kaya pala ito yung pinunit ng mga Katipunero noong 1896). Yung ibang notaryo nga na kakilala namin, Driver's License or Passport ang hinihingi pag may gustong magpa-notaryo at hindi cedula, since its more credible.

**erickdpogi** · July 4th, 2007 08:40 PM

the cedula is a requirement for the promisory note.

**kane** · July 6th, 2007 10:32 AM

It is not always bad to acquire debt. In fact, debt when managed properly can save you money.

example, if you pay 8% a year on interest payments, instead of shelling out a lot of money for the downpayment, why dont you just invest your money somewhere where you can earn at least more than 8%. bawi bawi ka na and you're making your money work for you pa. There are many investment options, mutual funds, stock market, trust funds etc.

in economics, remember, money today has more value than money tomorrow. a 1 peso today is not worth as much as a 1 peso tomorrow. Its better to invest your money, get a low downpayment instead.

this is what most people who are financially savvy do. better to borrow long long term, stretch it to 5 years. PS Bank, China Bank, and Metrobank can give you a good rate. MEtrobank offers 29.something percent for five years as add on interest.

message me if you have any questions. I also am getting a new car thats why I know. I shopped around for the best price and terms and conditions. congratulations and good luck.

**NightWinger** · July 6th, 2007 09:32 PM

29% = you have to pay 29% more of your car value. If you have the money to cash it out with a lower price or shorter installment term why not? I don't think long term installment = saving money.

**boytbak** · July 9th, 2007 01:38 AM

Mga Bros meron ba kayo alam na nagaaprove ng car loan eventhough me bad record yung kapatid ko sa ibang banko? gipit pa kasi siya noon kaya nde na muna binayaran yung loan niya sa citibank..

Gusto kasi namin bumili ng kotse ngaun.. kaso yung kapatid ko nasa states na sya.. at sya ang maghuhulog sana sa bank.. TIA

**kane** · July 10th, 2007 04:06 PM

Originally Posted by NightWinger

29% = you have to pay 29% more of your car value. If you have the money to cash it out with a lower price or shorter installment term why not? I don't think long term installment = saving money.

it is a little bit difficult to explain. let me give an example. i have 1 million. I am buying a car worth 1 million. I can either pay it in cash, or get a loan.

Choice 1: i pay in cash. i have a new car. 0 money.

Choice 2: assuming i get a 20% downpayment, and an interest rate of 30% for 5 years. that means, i will pay 200,000 now, and then over 5 years i will pay (800,000 remaining balance * 1.3 percent) = 1.04 million.

At this point in time, i have 800,000 still in cash. assuming i am a good investors, and i earn 20% a year on my money, my 800,000 will be

1st year = 800,000 * 1.2 = 960,000
2nd year = 960,000 *1.2 = 1.152 million
3rd year = 1.152 * 1.2 = 1.38 million
4th year = 1.38 * 1.2 = 1.66 million
5th year = 1.66 * 1.2 = 1.99 million

1.99 million less 1.04 million (the value of my loan over 5 years) = 950,000

the 950,000 is the money that i have left after five years. Looking at it this way, doesnt it make more sense to borrow longer and just use your money to invest?

A word of caution: There are risks involved. Remember, investments are not risk free. If you make a bad business judgement, you can still lose your money.

**docchris** · July 10th, 2007 04:17 PM

i second your opinion slash anylysis mr kane...

**Galactus** · July 10th, 2007 04:43 PM

^^^ Actually, the figures are too optimistic. The rate of return was placed at 20% (consistent over 5 years), and interest was compounded and plowed back as investment.

Iba kasi sa totoong buhay, especially in the capital markets. It's not enough that you have a good broker. You also need to know the ins and outs of stock trading, aside from economics, technical analysis, and dapat may "spider sense" ka rin.

Honestly, I put my excess money in the bank, specifically 5-Year Time Deposits, kasi tax-free and insured naman (250k and below). Maliit din kasi ang risk apetite ko.