Do people discriminate against old cars?

[dondonposadas]

Ot lang. Since parang nadiscriminate dito ang mga may utang. In my opinion i dont see any reason why we should discriminate people from exercising their right to choose to pay a car in installment even more than 5 years as long as payment were made without delay. I would rather get a brand new car in installment than 2nd hand car. Worry free driving is priceless.

[burjegol]

I have a 93 gli corolla. It's an old model car considering nabili ko yan 2nd hand. But . . ., the body is still shiny, could reach speeds up to 140 kph easily, I don't feel descriminated on the road. rather, many acquaintances are still amazed at the condition of the car. (papano, madalang lang gamitin. almost 20 years na but the mileage is just around 120 km ). and I much prefer this than my wife's avanza 2007 G matic

[CVT]

Remember,- mas mura pa rin ang bagong sasakyan,- kaysa sa house and lot...

Ang bagong sasakyan,- kahit saan ka pumunta puwede mong dalhin at i-display>>> sikat ka.

Pero ang house and lot, hindi lahat ng kaibigan mo, puwedeng pumunta....-

14.3K:eathis:

[CoDer]

Madami eager magkaroon ng kotse kaya pumapatol sa 5-8 year term then lowest down payment pa, eh halos 2 kotse na nabili mo pag ganong term. I might as well use old car kung wala akong pang cash.

Madami kasi di marunong mag compute or mag analyze ng cash flow nila di nila sinasama gas consumption, compre, and maintenance cost sa computation and depreciation kasi after fully paid na 50% or less nalang value nya.

Dami nga ako nakikita na ang liit liit ng bahay tapos nakaparada SUV ni walang garahe, di bagay yung car sa bahay di man lang nag AUV nalang.

I have a uber rich Client...

And her advice is never pay an expensive car in CASH. Kunin mo sya sa shortest possible term na kaya mo, then paikutin mo ang pera na pang cash mo sana.

Ika nga nya... Baliw ka kung i cash mo yan, invest mo pang cash mo.

[SiRbossR]

^what's the reason for that naman?

[badkuk]

i think the assumption is that you can put the cash to good use while you're paying the installment...e.g. say car A costs 600k, you can pay 20k this month, invest the rest of the money, earn say 10-20%.

kaso, dealers tend to offer huge discounts if you pay in cash....and like some earlier posters have mentioned, dealers have factored in interest income when you pay in installment, so you end up paying more as to pay longer.

Para hindi naman OT: i think it depends on the condition, not age, of the car. But yes, i have felt feel discriminated against. Cops and traffic enforcers would not think twice about catching and/or extorting from you when you're driving an "ordinary" car, as opposed to a brand new SUV with matching vanity plate from the PNP :p

What can you do? People are that like that...and not just because they're a-holes. People are primarily visual creatures i think, Just walk around in the mall and see whether the plain looking girl or the one in micro-minis gets your attention :D

[vinj]

Ot lang. Since parang nadiscriminate dito ang mga may utang. In my opinion i dont see any reason why we should discriminate people from exercising their right to choose to pay a car in installment even more than 5 years as long as payment were made without delay. I would rather get a brand new car in installment than 2nd hand car. Worry free driving is priceless.

I don't think the discrimination is to the loan per se but rather to those who will abuse it and push it beyond their means just to prove something. For example, your monthly budget can really easily buy you an Innova 2.5 E a/t, which already meets 99.00% of your requirements... you see the Fortuner 2.5 G a/t which looks more maporma so you think, why not? Kaunting tiis lang? Although it won't give anything much more to your requirements then the Innova you originally had planned for... then you decide, why not check out the Mitsubishi Monty Sport? Sabi kasi sa internet, mas malakas kaysa Fortuner at walang D4d problem... Ayan... :D

I don't diss loans as this helps build businesses, its makes the economy move, gets you to build your dream house and provide people with transportation; given it's used properly and your source of payments are properly matched to that. Even affluent people take loans for personal purchases as they want to amortize their expenditures to match their cash flow rather than touching investment money and savings.

I had a client before who used his loan line to purchase an old house and lot in a high end Makati Village, tore down the house and built a new one... he took a sizable loan for it but heck, he paid it down in a year and a half through his monthly personal income from his business. Conservative way of handling his finances; he did not use his enormous business/investment money or even his savings for his personal indulgences but he used a loan and matched it to his personal income cash flow. Kung nagkaproblem sa cash flow then that's the only time he'll use his savings.

[vinj]

I have a uber rich Client...

And her advice is never pay an expensive car in CASH. Kunin mo sya sa shortest possible term na kaya mo, then paikutin mo ang pera na pang cash mo sana.

Ika nga nya... Baliw ka kung i cash mo yan, invest mo pang cash mo.

That's true... the returns they get by keeping their cash in business is much more then the interest of the loans... may pang tax breaks pa sila with the loans to prop up expenditures.

What's crazy is to take a loan for something not necessary and divert all your resources to pay for it... lost chance on savings or investment.

[zap.FREEDOM]

^agree on that, before you want to buy something, invest it first on business para umiikot yung pera, just what a financial expert said dun sa seminar na napuntahan ko noon, "you want to buy a brandnew car worth 800k, and you have this 800k on hand? what would you do? ibibili mo ba?" some of us sumagot oo ibibili ko na kasi may discount pag-cash, then as our discussion goes on pinaliwanag niya na, tiisin mo muna na wala kang kotse, invest it first on business, at yung perang papasok sa business yun na lang daw ang gamitin pambili well sabi niya wala namang masama sa financing may income ka na naman from you business e, now you can have that brandnew car" may kotse ka na business ka pa at tuloy-tuloy ang pasok ng pera.

ang hirap kasi sa ilan natin kababayan, kapag tinanong mo na halimbawa "manalo ka ng isang milyon ano gagawin mo?" meron sasagot na "bibili ako ng kotse" ,"bibili ako ng bahay", "bibili ako ng ganito" wala man lang nakaisip na sumagot na "iinvest ko sa negosyo" nakakalungkot isiipin pero hindi talaga business oriented ang ilang nating kababayan.

at hanga din ako sa boss uncle ko noon, who owns construction firm, My uncle asked his boss bakit ayaw pa daw niyang magpalit ng sasakyan like Fort or Monty(since 2001 1.8 Toyota REVO ang gamit niya) e kaya-kaya niya naman daw niya makabili dahil million peso contract ang mga nakukuha ng boss niya, well, bumili nga ng bago pero hyundai getz lang, then my uncle asked his boss again "sir, bakit city car lang binili niyo? you can afford naman a SUV a?" at ang sagot pa sa kanya "anong gagawin ko sa mga SUV na ganon?Ang laki-laki noon, kaming dalawa lang naman ng misis ko ang sasakay saka ok pa naman yung revo ko e" napaka-weird talaga ng tao yon, ewan ko ba kuripot lang siguro talaga.

[shadow3616931]

I have a uber rich Client...

And her advice is never pay an expensive car in CASH. Kunin mo sya sa shortest possible term na kaya mo, then paikutin mo ang pera na pang cash mo sana.

Ika nga nya... Baliw ka kung i cash mo yan, invest mo pang cash mo.

I was referring to those who are getting 5-8 year term then lowest DP and those who dont know how to compute and analyze their spending then in the end their precious car is repossessed by the bank.

Punta muna ako psychiatrist baliw pala ako

[GTS925]

^agree on that, before you want to buy something, invest it first on business para umiikot yung pera, just what a financial expert said dun sa seminar na napuntahan ko noon, "you want to buy a brandnew car worth 800k, and you have this 800k on hand? what would you do? ibibili mo ba?" some of us sumagot oo ibibili ko na kasi may discount pag-cash, then as our discussion goes on pinaliwanag niya na, tiisin mo muna na wala kang kotse, invest it first on business, at yung perang papasok sa business yun na lang daw ang gamitin pambili well sabi niya wala namang masama sa financing may income ka na naman from you business e, now you can have that brandnew car" may kotse ka na business ka pa at tuloy-tuloy ang pasok ng pera.

ang hirap kasi sa ilan natin kababayan, kapag tinanong mo na halimbawa "manalo ka ng isang milyon ano gagawin mo?" meron sasagot na "bibili ako ng kotse" ,"bibili ako ng bahay", "bibili ako ng ganito" wala man lang nakaisip na sumagot na "iinvest ko sa negosyo" nakakalungkot isiipin pero hindi talaga business oriented ang ilang nating kababayan.

at hanga din ako sa boss uncle ko noon, who owns construction firm, My uncle asked his boss bakit ayaw pa daw niyang magpalit ng sasakyan like Fort or Monty(since 2001 1.8 Toyota REVO ang gamit niya) e kaya-kaya niya naman daw niya makabili dahil million peso contract ang mga nakukuha ng boss niya, well, bumili nga ng bago pero hyundai getz lang, then my uncle asked his boss again "sir, bakit city car lang binili niyo? you can afford naman a SUV a?" at ang sagot pa sa kanya "anong gagawin ko sa mga SUV na ganon?Ang laki-laki noon, kaming dalawa lang naman ng misis ko ang sasakay saka ok pa naman yung revo ko e" napaka-weird talaga ng tao yon, ewan ko ba kuripot lang siguro talaga.

Kaya madaming Chinese dito

[uls]

I have a uber rich Client...

And her advice is never pay an expensive car in CASH. Kunin mo sya sa shortest possible term na kaya mo, then paikutin mo ang pera na pang cash mo sana.

Ika nga nya... Baliw ka kung i cash mo yan, invest mo pang cash mo.

she doesnt sound very liquid

kung yung ina-allot mong cash na pambili ng car ay pwede din i-invest para mag generate ng cashflow pambayad sa installment sa car that means you don't have much capital

people i know who buy cars in cash have businesses and investments generating so much cashflow making them so damn liquid that buying cars in cash has very little impact on their finances. a car purchase is not a big deal. they're using extra extra money. money generated by extra money

kung nanghihinayang ka sa cash na pambili ng car, na sana ininvest mo nalang that means you don't have a lot of cash

kung big deal sayo ang isang car purchase, you're not rich

[uls]

"you want to buy a brandnew car worth 800k, and you have this 800k on hand? what would you do? ibibili mo ba?" some of us sumagot oo ibibili ko na kasi may discount pag-cash, then as our discussion goes on pinaliwanag niya na, tiisin mo muna na wala kang kotse, invest it first on business, at yung perang papasok sa business yun na lang daw ang gamitin pambili well sabi niya wala namang masama sa financing may income ka na naman from you business e, now you can have that brandnew car" may kotse ka na business ka pa at tuloy-tuloy ang pasok ng pera.

better is to re-invest the income generated by the 800K investment

grow that 800K to 8M

then buy a used car

[shadow]

I tried doing this before: I went to the Ford showroom to check out the Everest, then i applied for their in-house financing just to see how my credit standing would fare and i was surprised i got approved in spite of my entry level income at that time. Of course i did not take that loan. :P

Ayaw maniwala ng mga tao pag sinasabi ko sobrang bilis makakuha ng car loan ngayon, generally pag na approved ka ng credit card approved ka na rin car loan

[shadow]

Tingin ko Ang Isang hinde natuturo eh dapat mag save din for future investments. Savings specificallly for investments Kung meron biglang new opportunity.

[niwde11]

she doesnt sound very liquid

kung yung ina-allot mong cash na pambili ng car ay pwede din i-invest para mag generate ng cashflow pambayad sa installment sa car that means you don't have much capital

people i know who buy cars in cash have businesses and investments generating so much cashflow making them so damn liquid that buying cars in cash has very little impact on their finances. a car purchase is not a big deal. they're using extra extra money. money generated by extra money

kung nanghihinayang ka sa cash na pambili ng car, na sana ininvest mo nalang that means you don't have a lot of cash

kung big deal sayo ang isang car purchase, you're not rich

uls, minsan its not about liquidity but more on the "perceived financial status" ng tao. a brief example of this is the sister of my friend. they can buy a brand new crv but their accountant advised them to loan it. para daw di "malagkit ang tingin ng bir" sa kanila(you can read between the lines for sure).

now regarding the one you discussed(very liquid one), minsan sila yung taong generation na ang yaman sa pinas kaya alam na alam na nila kung pano laruin ang "financial status" ng di mapansin ng mga buwitre sa BIR. pwede ring sa laki nila e nasa control na nila ang BIR(again read between the lines, heheheh).

[shadow]

Yun iba kahit kaya nila cash nag loan pa rin to build up their credit standings. Especially yun mga anak, yes they can easily get the loan using their parent's name sa bank but iba pa rin Kung sarili mo. Example yun kinakapatid ko super yaman. Sales ng business nila gross ng couple of millions per day, but he recently got a loan from a bank worth 100M, he doesn't need it but he was building his credit standing, he's just my age 33. I get to know it since pareho kami ng bank and tsismis sa akin ng VP dahil alam niya magkakilala kami. Kaya mas grabe Ang tsismis Sa bank kesa Sa barber shop or parlor. Hehehe tambay ka lang Sa banko malalaliha ka na ng tsismis kung sino bankrupt hehehe

Kung puro image ka lang, wala talagang means you can't hide it from the bank. Makipag kwentihan kayo sa manager or VP malalaman niyo kung sino puro porma Lang.

[vinj]

Yun iba kahit kaya nila cash nag loan pa rin to build up their credit standings. Especially yun mga anak, yes they can easily get the loan using their parent's name sa bank but iba pa rin Kung sarili mo. Example yun kinakapatid ko super yaman. Sales ng business nila gross ng couple of millions per day, but he recently got a loan from a bank worth 100M, he doesn't need it but he was building his credit standing, he's just my age 33. I get to know it since pareho kami ng bank and tsismis sa akin ng VP dahil alam niya magkakilala kami. Kaya mas grabe Ang tsismis Sa bank kesa Sa barber shop or parlor. Hehehe tambay ka lang Sa banko malalaliha ka na ng tsismis kung sino bankrupt hehehe

Kung puro image ka lang, wala talagang means you can't hide it from the bank. Makipag kwentihan kayo sa manager or VP malalaman niyo kung sino puro porma Lang.

Mas matanda sa akin si Shadow...

But yes, banking is one very good information pot. That's why some large conglomerates have their own banks; its not just to manage funds but it also serves as source of information that helps in making business decisions.

And going back to the topic... banks don't discriminate people driving old cars or who look "poor". They usually are their best clients, those who look unassuming. When they lend money or grant loan lines to people (you're not talking about consumer loans to buy a house or car but loan facilities that go to the hundreds of millions), they would even be more discerning of the guy driving the flashiest cars, living the high life, etc. usually eto yung mga di nakakabayad ng utang later on.

[beni23]

they would even be more discerning of the guy driving the flashiest cars, living the high life, etc. usually eto yung mga di nakakabayad ng utang later on.

The first thing that came in to my mind: Willie Revillame. Haha. Just saying.

[zap.FREEDOM]

Yun iba kahit kaya nila cash nag loan pa rin to build up their credit standings. Especially yun mga anak, yes they can easily get the loan using their parent's name sa bank but iba pa rin Kung sarili mo. Example yun kinakapatid ko super yaman. Sales ng business nila gross ng couple of millions per day, but he recently got a loan from a bank worth 100M, he doesn't need it but he was building his credit standing, he's just my age 33. I get to know it since pareho kami ng bank and tsismis sa akin ng VP dahil alam niya magkakilala kami. Kaya mas grabe Ang tsismis Sa bank kesa Sa barber shop or parlor. Hehehe tambay ka lang Sa banko malalaliha ka na ng tsismis kung sino bankrupt hehehe

Kung puro image ka lang, wala talagang means you can't hide it from the bank. Makipag kwentihan kayo sa manager or VP malalaman niyo kung sino puro porma Lang.

ah now I understand, yun pala ang dahilan, building credit standing, meron kasi akong kakilala na, I know she surely afford to buy a SUV in cash, pero bumili muna siya ng dalawang city as in sabay in the same year (if i'm not mistaken t'was Picanto on she got on March 2009 and she got antoher which is an Alto on december of the same year na pinanregalo niya dun sa relative niya) for installment basis 50% d/p and 3 years to pay remaining balance, at ngayon taon lang na ito natapos niya bayaran yun dalawang kotseng inutang niya, and then she told me inaalok daw ulit siya ng bank na baka gusto niya daw ulit mag-loan since wala siyang sablay sa pagbabayad nun dalawa car loan niya, at tinanong niya rin ako kung ano magandang pick-up truck na gamitin for a business, mukhang gusto niya ulit bumili ng isa pa auto. Now I got the strategy. ang dami talagang malalaman dito sa tsikot.com