Vehicle sales for the 1st half

[uls]

Why do people avail of the 20% down with monthly payments of over 20K? If one could afford to pay 20K monthly, then one must have the money to pay at least 40% down?

even if they can pay 40% down, they choose to pay 20% coz they need the cash for other stuff

and also, people will choose the most initially affordable way to get new car

higher monthly payments? bahala na

here's my 20%

give me my new car now!

[_Cathy_]

* Tidus Yeah but what if the money that you used for business instead of paying the car in cash will be more than enough to cover for the interest? I don't take advantage of car loans but I know some people who are good with money who do and I know they have the means to pay in cash.

*ULS mas matindi siguro kung SUV pa yung pinili. LOL.

[tidus1203]

MY CAR?? More like OUR CAR!!! (refrring to the bank and you and the bank still owns 80% of it so you're a minority)

[tidus1203]

^ Yeah but what if the money that you used for business instead of paying the car in cash will be more than enough to cover for the interest? I don't take advantage of car loans but I know some people who are good with money who do and I know they have the means to pay in cash. Kanya kanyang style yan

Still no business is fail proof. If someone told you he will definitely make money on it, he is an idiot! (Unless illegal like selling drugs or pyramid schemes).

With that in mind what if your business fails? The car amortization continues to roll on. Then you fail to pay, then the banks takes it away from you and you are left with nothing. Bye bye to your DP and whatever monthly ang nahulugan mo. If you pay by cash, your business fails no problem. SELL THE CAR!

I guess you could also sell a car that has a loan, but still people prefer to buy 2nd hand cars that are already fully paid para wala ng hassle...

[uls]

But do you consider it wise if you have money to buy in cash but instead took a car on loan at 50% down, 3 yrs to pay then used the remaining money on business.

My prof told me that people who are good with money know how to take advantage of credit.

i would borrow money to buy an asset that makes money

but borrow money to buy a new car?

why would you borrow money to buy a depreciating asset?

talo ka eh

first, the car won't earn money (unless gagawin mo taxi or rental)

second, you'll be paying a higher total price than if you pay cash

third, not only will you be paying a higher total price, you'll be paying more for something that loses value quickly

[uls]

* Tidus Yeah but what if the money that you used for business instead of paying the car in cash will be more than enough to cover for the interest? I don't take advantage of car loans but I know some people who are good with money who do and I know they have the means to pay in cash.

they use car loans coz they have to stay liquid

even if they have enough cash for a new car, they need that cash for something else

there are people who strictly monitor their cash flow

they have incoming and outgoing money accounted to the last peso

[tachyon]

a lot of companies today offer car loans/plans to their employees. i guess it's a means of ensuring that the employee will stay longer. i got surprised when i heard about mid-level managers of 7-eleven got monteros as a car plan.

[_Cathy_]

they use car loans coz they have to stay liquid

even if they have enough cash for a new car, they need that cash for something else

there are people who strictly monitor their cash flow

they have incoming and outgoing money accounted down to the last peso

This is what I am trying to say about people taking advantage of credit.

Pwede ba ko mag apply sa 711? How much is the salary of their mid level managers kaya?

[ghosthunter]

But do you consider it wise if you have money to buy in cash but instead took a car on loan at 50% down, 3 yrs to pay then used the remaining money on business.

My prof told me that people who are good with money know how to take advantage of credit.

Only valid if you have limited money on hand.

All others pay cash in full.

[tidus1203]

But then again to those people who use credit to buy depreciating assets, why buy the car now if the cash flow is tight? Loaning will still require you to pay interest. And paying interest is not good. Ako personally allergic ako sa interest if I have to pay them pero I embrace it if I am receiving it...

Hahaha so those mid-managers will continue to be slaves to the company. And the company also makes money on the side by charging these employees with interest. BRILLIANT!

As I have said a long time ago, DEBT is the modern SLAVERY!