Bank Loan or Cash Payment???

**gani07** · January 12th, 2013 04:35 PM

Magandang Araw...

I am planning to purchase a SUV po. And i need your suggestions which is far better? Purchasing it thru CASH(assuming na may ganun kalaking pera) or BANK LOAN???

And hingi na rin po ako ng tips/guidelines if in case CASH PAYMENT(discounts, freebies etc.). I've heard kasi na agents do not entertain customers if cash payment.

And at the same time kapag LOAN, san una dapat magpunta???DEALER or BANK???(medyo na confuse lang po ako sa other forums about bank loan.)

Thanks in advance.

**dct** · January 12th, 2013 04:51 PM

mas maganda syempre ang cash. para walang interest na babayaran. yun ay kung kayang kaya talaga to pay in cash. in dealer's perspective. same lang ang cash and bank loan. kung may difference maliit lang. they really prefer in-house financing. kasi tiba tiba sila dun

kung ang bibilhin mo ay yung maraming stocks like montero, vios, fiesta, etc, maraming freebies ang maibibigay. pag mga high demand low supply naman like trailblazer, ranger, explorer, fortuner, tipid sa freebies yan. hope that helps

may kakilala naman ako na may business, tapos may ilang lupa, ilang sasakyan, gusto nya bank financing kahit kayang kaya cash para daw hindi guluhin ng BIR

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mas maganda syempre ang cash. para walang interest na babayaran. yun ay kung kayang kaya talaga to pay in cash. in dealer's perspective. same lang ang cash and bank loan. kung may difference maliit lang. they really prefer in-house financing. kasi tiba tiba sila dun

kung ang bibilhin mo ay yung maraming stocks like montero, vios, fiesta, etc, maraming freebies ang maibibigay. pag mga high demand low supply naman like trailblazer, ranger, explorer, fortuner, tipid sa freebies yan. hope that helps

may kakilala naman ako na may business, tapos may ilang lupa, ilang sasakyan, gusto nya bank financing kahit kayang kaya cash para daw hindi guluhin ng BIR

**ghosthunter** · January 12th, 2013 05:07 PM

Originally Posted by gani07

Magandang Araw...

I am planning to purchase a SUV po. And i need your suggestions which is far better? Purchasing it thru CASH(assuming na may ganun kalaking pera) or BANK LOAN???

And hingi na rin po ako ng tips/guidelines if in case CASH PAYMENT(discounts, freebies etc.). I've heard kasi na agents do not entertain customers if cash payment.

And at the same time kapag LOAN, san una dapat magpunta???DEALER or BANK???(medyo na confuse lang po ako sa other forums about bank loan.)

Thanks in advance.

Depends on how you look at it.

Paying in cash is good because it would save you money as compared to financing.

Paying via bank loan is good for BIR tax purposes but you will incur some interest charges on the loan.

Generally it depends on your income and lifestyle. Cheaper cars would be better of paid in cash. Expensive luxury cars would be better off paid via bank loan (to show the BIR you don't have that much cash on hand).

**gani07** · January 13th, 2013 01:57 PM

Originally Posted by ghosthunter

Depends on how you look at it.

Paying in cash is good because it would save you money as compared to financing.

Paying via bank loan is good for BIR tax purposes but you will incur some interest charges on the loan.

Generally it depends on your income and lifestyle. Cheaper cars would be better of paid in cash. Expensive luxury cars would be better off paid via bank loan (to show the BIR you don't have that much cash on hand).

thanks po sa advice DCT and Ghosthunter.

actually that's my point din for cash payment, it would save a lot of money. compared to loan na isipin mo pa yung interest.. i dont think din kasi na darating yung point na maquestion ng BIR kasi we just had that savings to purchase a car.

another questions:
1.if i decided to buy it in cash, excluded dun ung mga Free LTO Registration, insurance etc. dipo ba??
so in that case, kami na rin po ang magaasikaso nun???

2.anu po ba yung mga makukuha kong freebies then? or it would depend na rin sa usapan ng car dealer and buyer??

3. Yun idea po ba na they will not normally entertain it if cash payment is a fact???

4. do they give discounts if cash payment?? any idea??

Mr. DCT, any idea about sa marketing ng Hyundai Tucson??

**ghosthunter** · January 13th, 2013 02:24 PM

Originally Posted by gani07

another questions:
1.if i decided to buy it in cash, excluded dun ung mga Free LTO Registration, insurance etc. dipo ba??
so in that case, kami na rin po ang magaasikaso nun???

Depends on the packaged price deal offered to you. Some dealers you can negotiate the LTO as free or inclusive of the selling price but usually this is only true for more expensive car purchases.

2.anu po ba yung mga makukuha kong freebies then? or it would depend na rin sa usapan ng car dealer and buyer??

freebies depend greatly. Usual freebies would be car mats, window tints (ask for 3M original), seat covers.

3. Yun idea po ba na they will not normally entertain it if cash payment is a fact???

Yes, but usually only for certain high priced vehicles with very limited supply and high demand like the Toyota GT86. Such policy is not official if you will manage to speak with their executives but it happens.

4. do they give discounts if cash payment?? any idea??

They do but often it's a fix set amount that has been pre-determined between all dealers of that car brand. You could get a better overall price if you opt for getting the insurance from your own insurance company.

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Originally Posted by gani07

another questions:
1.if i decided to buy it in cash, excluded dun ung mga Free LTO Registration, insurance etc. dipo ba??
so in that case, kami na rin po ang magaasikaso nun???

Depends on the packaged price deal offered to you. Some dealers you can negotiate the LTO as free or inclusive of the selling price but usually this is only true for more expensive car purchases.

2.anu po ba yung mga makukuha kong freebies then? or it would depend na rin sa usapan ng car dealer and buyer??

freebies depend greatly. Usual freebies would be car mats, window tints (ask for 3M original), seat covers.

3. Yun idea po ba na they will not normally entertain it if cash payment is a fact???

Yes, but usually only for certain high priced vehicles with very limited supply and high demand like the Toyota GT86. Such policy is not official if you will manage to speak with their executives but it happens.

4. do they give discounts if cash payment?? any idea??

They do but often it's a fix set amount that has been pre-determined between all dealers of that car brand. You could get a better overall price if you opt for getting the insurance from your own insurance company.

**dct** · January 13th, 2013 02:46 PM

sa lahat ng tanong mo it depends sa car, sa dealer. sa SA. pero as of tucson hindi naman nila dinedeadma ang mga cash and bank PO e. as of now ang mga deadma sa cash and bank PO are trailblazer, ranger, explorer, 86. usual freebies, car mats, seatcover, tint, minsan EWD at may mga dealer na may iba pang binibigay. depende sa usap nyo.

ang gawin mo, pagpumunta ka sa hyundai para makipagnegotiate, sabihin mo galing ka na ng kia, mitsubishi, mazda, ford, honda, nagtest drive ka na. dapat may brochure din. hahaha. at gulong gulo ka pa kung ano ang bibilhin mo. hoping bigyan ka discount, freebies, etc. :D

**trucker111** · January 20th, 2013 05:43 PM

suppose you are buying a car via bank financing.

1. can you still get substantial discounts or is it the bank who gets the discount from the dealer?
2. can you source your own insurance and tpl?
3. can you still get freebies from the dealer? from the bank?
4. can the buyer dictate the amount of the DP he wants to put and the no. of months he wishes to pay the balance? (say 50% dp and 18 checks for the balance)
5. suppose you had the car financed for 18 months. suddenly on the 3rd month, you have enough cash to pay off everything. will the bank allow you to settle the loan prematurely? can you get discounts?

**1D4LV** · January 29th, 2013 03:23 PM

Originally Posted by gani07

Magandang Araw...

I am planning to purchase a SUV po. And i need your suggestions which is far better? Purchasing it thru CASH(assuming na may ganun kalaking pera) or BANK LOAN???

And hingi na rin po ako ng tips/guidelines if in case CASH PAYMENT(discounts, freebies etc.). I've heard kasi na agents do not entertain customers if cash payment.

And at the same time kapag LOAN, san una dapat magpunta???DEALER or BANK???(medyo na confuse lang po ako sa other forums about bank loan.)

Thanks in advance.

Cash.
Wala ka ng iniisip every month.
And coupled with depreciation, inflation and interest rates, mas panalo ka.
Plus makakahingi ka pa ng bigger discounts.

**ale828** · February 11th, 2013 11:40 PM

Originally Posted by trucker111

suppose you are buying a car via bank financing.

5. suppose you had the car financed for 18 months. suddenly on the 3rd month, you have enough cash to pay off everything. will the bank allow you to settle the loan prematurely? can you get discounts?

I wanna ask the same question.
I applied for an In house car financing and got their maximum 30% Downpayment and 24 months to pay. I tried the 50% DP and 1 year to pay pero wala.
My question is could i pay off the rest of the In house financing after 1 or 2 months? is there a penalty for paying early? or will it depend on the in house financing contract?