Need advice, 1st time car and it will be financed.

[Lew_Alcindor]

meron na ding mga in house na mababa interest.. example yung nakita kong Kia Carens sa isang mall.. this is from KIA caloocan yata..

SRP = 1.275M
ALL in DP - 30T
Monthly for 60 months = 26T
Total Payment = 1.59M

Interest = 315T or 24.7% or 4.94% per annum na lang din

Totooa ba ito? Mas mataas pa interest kesa sa car loan namin sa banko hehehe

[khalee]

Low DP is tempting but my guess is that most repossessed cars were acquired through "Low DP" promos becaue=se these buyers are not aware of the long term financial implications.

Agree with this. You also have to consider, gas, parking, PMS etc when owning car. So weigh what works for you.

I just got my car a week ago through direct bank financing. High DP works better for me than paying a high monthly amortization as I also have other monthly dues.

If you're going tru in house, try haggling with your dealer. Tell them the banks offer (you can use banks auto loan calculator to get an idea how much it would cost) then ask your dealer if they can offer you the same or somewhat close to it.

Goodluck on your car hunting sir!

[Synth007]

I guess he badly needed it as mentioned above. Most of the steps are already mentioned above. Though as we all suggest... and as much as possible... dont go inhouse since the addon interest is way up there. Just save until you can afford atleast 20%down. Anyway some dealers do provide competative financing if you know how to haggle. Best way is to give them a qoutation from the bank and let your agent start from there. When it comes to hidden charges, usually the agreed monthly would be charge unless theres something about the contract that says so... read carefully the contract! There you go... hope you could buy your first bnew car without hassle

[dr. d]

i ask myself:
what is the cash price of the car?
what is the monthly, and what does the total amount add up to, after everything has been completely paid for? am i really willing to pay that much?

can't i use the money to buy something more permanent, like a house, instead?
really, i'd buy a house first before i buy a baby that will never grow up, despite its increasing appetite..
(if TS already has a house, TS will disregard the last two statements.)

[willyfernando]

TS says he badly needs a car however there are some red signs I worry about. If he couldn't afford to raise an acceptable down payment (20 -30%) then managing an agonizing 5 year term loan will pain him. Just thinking, if the in-house approval was given a nod then why not explore the bank loan angle to save some hard earned money? Though banks are more conservative they can give you an idea of how financially sound you are in taking a loan. This way you can really be more sensible with what you buy for your first car, budget and term wise. IMHO, in-house deals are a pain and often times sales quota motivated but in the end it's like you paid almost twice for the car especially for those longer than 3 years term.

[shemcristobal]

Have everything documented in a quote from dealer, including all the freebies for the car you want.

Then apply for bank approval. If you talk directly to the bank you'll get to negotiate for lower down payment and monthly amortization. {In-house financing is a sure way to go (just like others said) but costs you more. Well weigh in if you can suck up the costs versus the relative difficulty of pushing a bank approve a car loan plus finding that dealer to agree that your not in-house financing it.}

Once you get Bank approval, negotiate with the dealer. The dealer will follow the terms and conditions of the bank anyhow.

Once dealer agrees, pay the reservation fee (deductible from your downpayment) and when unit is available for release, dealer will instruct you to process the bank documents, prepare the manager's check (sum of all bank fees, remaining downpayment, LTO) payable to the dealer, coordinate bank P.O. submission to dealer, then pick up of your car follows.

For an 875K car, you would likely shell out around 160K; and a monthly ammortization of close to 16K for 60 months (will be deducted from your bank account - no more cheques to issue).

Now it really boils down how much you can cash out upfront.








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[gh0str1d3r]

Thanks for the replies Very informative.

I'll try out the banks for lower interest. But if the DP is still that high compared to the "all-in" promos of dealer, I'll have to settle with the dealers and find the lowest monlthy or interest. I really need a car for daily use, home to office and week end rides

Which bank offers the best car loan? and also which approve fast?

Is there better promos when it comes to December (Christmas), dealers have Christmas promos right? should I wait for that, what will they offer. Currently still using my sister car temporarily.

[shemcristobal]

Which bank offers the best car loan? and also which approve fast?

Is there better promos when it comes to December (Christmas), dealers have Christmas promos right? should I wait for that, what will they offer. Currently still using my sister car temporarily.

Good question and to answer that you have best chance with your own bank right now. I assume your salary is creditted to some bank and that bank is the best candidate as they already have record of your income history.

If you have credit cards, it is best to have a good credit standing with them.

Promos are good but will delay you or might not include the car of your interest.



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[dr. d]

as mentioned earlier, if TS has difficulty coming up with the down payment, it may be an indication that TS won't be able to afford the monthlies and maintenance later..
i have seen car owners whose desperation at acquiring a car, was overshadowed only by their desperation at getting rid of the same car, after only a few months..

if TS is amenable, settle for a cheaper, pre-owned car. something you won't have to pay for every month for more than 6 months.
marami diyang ok na used car. konting tiyaga at dasal lang.. used vios, sentra, even corolla..

and oh! the oxymoron: when in a rush to buy a car, any car, don't rush. the next car might just turn out to be the better buy.

is it possible that TS has an upcoming activity that needs a car? if so, my suggestion is, rent one. after the activity, just return the car and he'll have no problems at maintaining it.

[larry0609]

Toyota Pasig branch is now having their Christmas promo. You might want to check their website to find out more about it.


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