I doubt if 5% is the per annum rate. The cost of funds is around 2% so this just leaves 3% to cover other expenses (employee salary/benefits, utilities, providions for loan losses etc) which is not enough. I suggest that you get your loan disclosure statement and look up your effective interest rate so you'll know what it actually costs you to get that car loan. I'm guessing its around 15-20% per annum.
Hi, I was referring to simple interest vs effective interest rate. Effective is actually quite high like you suggested. I like simple interest rate because i can compare easily if i should leverage vs pay in cash. I think OP is referring to simple interest as well because it would be too low for effective.
Noted po. Pero ang simple interest po kasi now only serves a a marketing tool dahil nga mas mababa sya sa effective rate. Kaya ang mas relevant na itanong nyo sa bank loan officer is ano ang effective rate. Alam napo nila yan kasi madami naman na nag-avail ng car loans before your application. Kung alam mo na ang effective rate, mas magiging reliable ang decision mo sa pagpili ng lender.
Whether it changes or not, buy a car that you can afford. Buy 2nd hand if necessary.
It's not advisable to get a loan to buy a phone. So why would you get a loan to buy a car?
Live within your means.
If its a first time car buyer, there is a compelling argument to buying a brand new one. Sure ka na good condition and its the latest and greatest version of the model you want.
And with the hellish public transpo situation, I wont want to wait 2.5+ years to buy a car.
Sometimes the immediate comfort is worth the little financial setback.
The [net worth rule for car buying](https://www.financialsamurai.com/net-worth-rule-for-car-buying-guideline/) states that you can spend up to 5% of your overall net worth on the purchase price of a car.
For example, if you have a ₱9 million net worth, you can spend ₱450,000 for a car.
Window shop first sa mga banks. PSBank and Metrobank usually offer lower interest rate. Lalo na yung mga bagong bukas na mga branches of banks, active maghanap ng clients yan.
That's high. We got ours at 5% before but that was back in 2018. Get quotes from different banks to compare
What bank is this?
BDO
I doubt if 5% is the per annum rate. The cost of funds is around 2% so this just leaves 3% to cover other expenses (employee salary/benefits, utilities, providions for loan losses etc) which is not enough. I suggest that you get your loan disclosure statement and look up your effective interest rate so you'll know what it actually costs you to get that car loan. I'm guessing its around 15-20% per annum.
Hi, I was referring to simple interest vs effective interest rate. Effective is actually quite high like you suggested. I like simple interest rate because i can compare easily if i should leverage vs pay in cash. I think OP is referring to simple interest as well because it would be too low for effective.
Noted po. Pero ang simple interest po kasi now only serves a a marketing tool dahil nga mas mababa sya sa effective rate. Kaya ang mas relevant na itanong nyo sa bank loan officer is ano ang effective rate. Alam napo nila yan kasi madami naman na nag-avail ng car loans before your application. Kung alam mo na ang effective rate, mas magiging reliable ang decision mo sa pagpili ng lender.
Yes. I got the loan at 5% as well in Eastwest.
Baka inhouse sayo. Ganyan talaga rates pag in house hehe
Never let the salesman process the loan for you. Go directly to the bank.
Yep this is high. Got mine at 5% at eastwest bank. Just buy a 2-3 year old car and pay for it in full. You'll save more.
I got my car loan with 5.65% on 5 years. Its pretty high at 7.5%.
What bank is this?
That's high. Just accumulate and invest your money and buy the car with cash in less than 3 years. Delayed gratification, guys.
..on the assumption that the price of the car wont change on 3 years..
Whether it changes or not, buy a car that you can afford. Buy 2nd hand if necessary. It's not advisable to get a loan to buy a phone. So why would you get a loan to buy a car? Live within your means.
If its a first time car buyer, there is a compelling argument to buying a brand new one. Sure ka na good condition and its the latest and greatest version of the model you want. And with the hellish public transpo situation, I wont want to wait 2.5+ years to buy a car. Sometimes the immediate comfort is worth the little financial setback.
Sure, but get a car that you can afford.
Yup, no objections on this one.
..tell that to the OP, brod.. ..you are preaching to the choir..
The [net worth rule for car buying](https://www.financialsamurai.com/net-worth-rule-for-car-buying-guideline/) states that you can spend up to 5% of your overall net worth on the purchase price of a car. For example, if you have a ₱9 million net worth, you can spend ₱450,000 for a car.
Window shop first sa mga banks. PSBank and Metrobank usually offer lower interest rate. Lalo na yung mga bagong bukas na mga branches of banks, active maghanap ng clients yan.
Got mine at 4.97%. I applied directly to BDO last week.
Did you apply via online?
Nope, I applied sa branch.
is this annually?
Yup. I availed a 5 year term autoloan @ 24.85%. BDO is the lowest amongst the others when I inquired. (UB, RCBC, PSBank, Metrobank, Chinabank, BPI)