assume balance

[kantoboy]

Ey, newbie here, need advice:

I'm interested in a 2006 used car that someone is offering on an assumed balance basis. There is 27 months left to pay at 28k per month. However the person is asking for 220k in addition to assuming the balance. I dont think 220k is reasonable considering it now costs more then a brand new one, how much should I ask for?

Also is it possible to renegotiate with the bank the terms?

[tr1ck5h07]

what car is this? and what's the normal retail price?

you can request a quotation from the casa for the car and then compute for the depreciation. with this info, you can negotiate with the seller on the price.

[wildthing]

talo ka...kasi by the time matapos yun magiging P976,000 na!

Eh di bumili ka na lang ng brandnew...tapos yung P220k na hinihingi e ipang down payment mo.

[2Dmax]

talo ka...kasi by the time matapos yun magiging P976,000 na!

Eh di bumili ka na lang ng brandnew...tapos yung P220k na hinihingi e ipang down payment mo.

that's aboslutely correct. bka maya may sira na rin pala ung binebenta sa 'yo. also sa bnew panalo ka talaga dahil sigurado ka sa quality and also kapag benenta mo na mas ok ang resale value dahil original owner ka..

[1D4LV]

sobra naman yun...

756000 + 220000 = 976000.

anong oto yun? BMW, an SUV o the new civic?

[Mguy]

Remember, in assuming balance, you're also assuming the interest due on the loan.

Compute for a car loan for the same car and the same terms. Whatever the difference, yun lang ang matitipid mo.

[the_wildthing]

What car? And how long is the original term? What is the original price of the car?

Usually sa assume-balance, gusto nilang marecover yung part ng down, tapos lahat ng previous payments, considered loss nila. One thing to make sure: if you are assuming the balance, make sure the bank will transfer the loan to you. Check mo rin kung up-to-date yung payments.

[empy]

you are getting screwed. was that 220k intended to recoup the downpayment made on the vehicle? if so, ano siya, hilo? you will be paying for the depreciation incurred by the seller while he was enjoying the brand new vehicle....

[kimpOy]

yup tama sila magpalabas ka na lang ng brand new...
teka ano bang car yan?

[NazQ]

cars do not appreciate in value..
well unless na lang classic yang binibili mo.

[boybi]

ano munang car yan? baka naman fortuner 4x4 yan, pwede na.

[5Speed]

ano munang car yan? baka naman fortuner 4x4 yan, pwede na.

or a Nissan Patrol....

[vinj]

It depends on what car that is, it's brand new cost, and from what perspective you will take a look at it. If you're assuming the loan then that can also mean your interest would still be for a brand new car (lower interest rate) than buying the same car and refinancing it as second hand. Once you have all the details then you can also negotiate the assume balance for a fair price.

[vhenok]

Yeah, mahirap ang assume balance, better get a brand new....pero mas mahirap mag-assume kung anong car?

[kantoboy]

I computed the original cost (i went to a dealer) apparently from the computation the seller wants to recover the initial down plus part of the payments. Parang initial down at 27k a month was about 100 - 150k.

[Mguy]

If that is the case, lugi ka dyan.

[akal]

depende sa car yan. i experience before na nag assume balance din ako for a honda civic vtec.

[wakin]

kung hindi mo kayang mag cash outlay then that is your option. magloloan ka rin naman. check whether me mga other charges yan sa banko if you would assume the balance. yun nga lang dapat babaan yung babayaran mo sa seller.

[CLAVEL3699]

add mo sa computation mo.

Ilang months na ba sya nakakabayad?

eto dapat magcompensate dun sa depreciation value.

[kantoboy]

add mo sa computation mo.

Ilang months na ba sya nakakabayad?

eto dapat magcompensate dun sa depreciation value.

well am speculating, but assuming the differences between banks rates arent so big, he must have paid off 8 months or less. which comes out to about 220k. Since he is originally asking for 250k, he must be thinking of recouping the money he paid monthly, and be forgoing the intial downpayment of 100k or whatever the minimum downpayment was (plus chattel / registration / insurance).

parang na-curious lang ako, its the first time i've heard of assume balance.