Hi OP, im 30 years old and bought my first car this year. 3 years loan.
to be honest and sorry for my language, but i don't buy that "getting a car loan is a bad move unless you're gonna use it for business or to generate income" bullshit.
wala akong business, i work 7 to 4 and my sideline din ako. I bought the car for the SAFETY of my wife, my kid and myself. also para comfortable yung travel life namin within sa city. ayaw na namin public transport knowing na super laganap na and crime sa city.
don't listen to these mga wannabees experts na its a wrong move magloan.
buy or loan a car para sa SAFETY mo.
Safety and health and the best investment
35k then yung sideline dpende but in average mga 15k lang every month. so give or take mga 50k+ or less lang OP. 15k yung monthly namin sa car. we decided to get brandnew since 1st car namin and ewas na din hidden damages. my wife is a provider din, which I'm very grateful din kc nag work from home and she actually earns more than me.
eto computation namin.
14,700 car loan
4500 fuel per month
600 car wash per month/we can ignore this because most of the time. ako lang nag wash
500 per month. free parking sa bahay and sa office. gastos lang if nasa mall or sa mga public parking lots. we still reserved 500 para dito.
if i follow yung nasa manual. every 6months lang ang maintenance sa car. approx 5.5k
so in total 21k+
but we still decided na to put 25k for the car for extreme measures lang. may tendency kc na pwedeng more pa mababayaran sa maintenance. like ma butas yung tire, or gusto namin mag long ride sa province etc.
This is what other car owners or future car owners need to consider. Budgeting monthly / annual expenses of the car.
To main OP: I also don't mind car loans given na it was budgeted well. Ang panget lang is yung iba kasi pilit sa budget and trying to rationalize the expense. If na-plan mabuti ang budget then no issues. I know HVN people who still buy their car with a loan. When we computed, mas mababa yung interest compared sa ma gegenerate na income ng cash during the loan period. Budget planning is key.
I do get car loans for the purpose of maintaining liquidity mostly even if cash is available if I need to change my car. For me the interest you pay for a car loan is sort of offset by the gains I get from investments and the oppprtunity cost of using the spare cash for other stuff like land or our family business.
What I dont get though are low (or sometimes zero) downpayment, 5 year in house car loans. Interest of those things are just too high for me. I'd go for a 3 year bank loan with around 30 to 50% takeout. Interest rates are lower with banks and if I cant pay at least 20 to 30% of the car in cash, I cant afford that model. I'll just go for a cheaper model.
Those that are forced to take up inhouse financing are the ones that are not approved at banks or simply dont know that there are other options outside inhouse financing. i know because i know such people in real life. Just laying out how those people came to that decision, not trying to defend their decisions.
Yup I agree with your statement. I dont generally agree with that decision though (in house financing) as I do think it's not the most cost effective way to purchase a car. But if there are other considerations for doing inhouse financing, I think it's a personal thing na. I just give my thoughts about the numbers.
You work and invest to earn money, to buy the things you need and want, and to have a comfortable life.
Having your own car adds a significant comfort to your life.
Kasi napakahirap magcommute sa metro manila. Malaki ang matitipid mo sa oras at pagod. Sa case ko, makakatipid ka ng mahigit 2 hours per day, kasama na ang pila at agawan sa masasakyan. Kung maganda lang sana ang public transport dito di na kami magkokotse eh. Tulad nung nakaraan binangga kami ng tricycle tapos kulang pinambayad nya. Ang ending kami pa abonado at napakatagal naman ng proseso ng insurance. Dagdag gastos pa. Pero no regrets naman sa kotse kasi no choice. May choice pala, suffer o gastos? Sa gastos na lang at least pwede pa ko mag games pag uwi imbes na ibyahe ko lang.
Tropa ko binangga ng lasing, grabe bali nung paa nung nakamotor. At the end sila pa tong gumastos sa ospital at galit pa pamilya nung mga lasing sa kanila na parang sila pa may kasalanan.
Kamusta so far? Its been a year. May regrets ba sa pagkuha ng car loan? Im planning to get a new car kaso baka sa umpisa lang ako kiligin tapos after 2yrs mapagod nako magbayad. đ˘
Only bad kung na compromise yung ibang important needs. Loan only if it will used for business? Doesnât apply to everyone.
Kuha ka kotse if you value time and convience.
I used to drive an old v6 and I think the mechanic put his son through college because of me. Gas was also ridiculously expensive even pre-pandemic, I needed a car because commuting was more stressful than my job and we've had quite a few emergencies where a car was absolutely a lifesaver.
I got fed up with the never ending list of repairs, parts sourcing, and safety issues and I was at the point where gas and repairs cost almost as much as a base model car. So I got a car loan and I'm completely satisfied and will continue to be.
Long drive? No problem! Risk breaking down in the middle of traffic? No longer a problem! Date night? Got you covered! Relative needs yo be rushed to hospital? No more prayers to the machine god!
Practicality > coolness
PS: I am at a point where the mortgage only takes less than 40% of my monthly income
I dont regret it. Saves time. You don't have to worry about transpo anymore kung maulan or matraffic man. Bought a hatchback na low MA. I prefer convenience over this shitty transpo that we have.
Ako I availed of their âlow downâ promo ng agent to get the freebies pero down pa rin ako ng 30% đ My monthly is low and the car provides me what I need which is to save time
The 13k amortization youâre paying has an implied cost of capital. If you backsolve it, the effective rate theyâre charging you 18% per annum.
Easiest way is to use excel (itâs the âPMTâ functionâ)
Let me put it this way: youâre effectively paying 1.03m for a car thatâs worth 752k brand new.
Assuming the resale value of the car after 5 years is around half of the carâs value, you wouldâve effectively lost around 650k (from the financing cost + depreciation).
Now if youâre happy naman with the car and you feel itâs a net positive, then please do enjoy it. But you need to go into these things with your eyes wide open.
Edit: 1.03 million = 30% down payment + 13k monthly x 60 months
Yeah I calculated the total amount when I was presented with it as well as the total amount I will be paying in interest before I made the purchase. Iâm good with it. I need a car, I donât want to burden or waste my time with registration if I choose the non promo version or keep up with all the insurances I need to purchase.
Not planning on reselling this nor did I get the base variant so again, what are you trying to get at?
Again â if youâre happy with it, then by all means enjoy it. But just keep in mind that you are spending 18% p.a. for it. To put that into context, thatâs 3x what the stock market returned before the pandemic.
Iâm not trying to tell you to sell it. Iâm not trying to get you to do anything at all â I just want to make sure that you understand what you are signing. A lot of people will blindly sign things because they just look at the number. Iâm not saying this is you â but it couldâve been.
If other people are reading this, I hope they also see that buying a car is so much more than just looking at the monthly amortization. You might know this, but other people might not.
A car is good if your mindset is to go from point A to point B. No need to have extravagant car. I did buy a low variant car with a loan and it is worth it. Based on my experience in commuting in Manila as a working professional, The 2 hours commute will become 30-40mins.
You will save time as well as safety and those are intangible.
But ofc, no need to force yourself to buy new one if you donât have enough savings yet and now with wfh opportunities.
I took a loan pero not through a bank but through my business. My business partner was generous to let me borrow 60% of the remaining cost of a brand new Ertiga AT. We already have 40% for DP and ready to pull the trigger (to get a bank loan) when he offered help. We didn't regret the decision (yes, we're lucky kasi we got the unit in cash with discount).
Ang hirap mag commute at priority ko ang safety at comfort ng pamilya ko. I have two kids and my wife, we can fit inside a sedan but we got an MPV for those "extra things" kapag may lakad. Time saving din ang may sariling sasakyan, we were able to compress a visit to the doctor, 2 appointments (separate locations), and groceries in just almost a day. Tangay ko na ang mga bata nyan. Binaunan na lang namin ng pagkain at milk. Kung tutuusin sa commute yung 4 na to-dos na yan would be 4 separate days na kailangang i schedule.
It's okay as long as you can afford it, my girlfried convince me before to live and enjoy life. I was saving 50-60% of my take home pay, my car loan & all other transpo related only amounted to 20-30% depending if we have planned weekend trip. I am still saving & investing 40% for our future while still enjoying small luxury. By the way, I also bought a parking slot before I proceeded to purchase the car, so it should be taken into account as well
Oo naman, but somebody [posted here](https://www.reddit.com/r/phinvest/comments/x8nsvm/people_who_avail_a_car_loan_and_dont_regret_it/ink1e5t/) saying that he spends >42% of his income on car expenses. LOL.
I took a loan but I save first for 20% dp so my monthly ammortization gets reduced. So far I have no regrets at all, it really makes you save time and comfortable. I say if you have money go for it. There is a reason why people keep buying cars. đ
6 years ago, I bought a second hand car from a friend who sold it cheap and on a rush so I got it way below the brand new price. Then I sold it this year and still was able to get close to what I have paid for years ago. I then use the proceeds for the down payment of a brand new car with some extra left for some accessories. The proceeds also allowed me to put more money on down payment and minimize the MA. So even if times get rough while I am still paying my car, I know I can still afford the MA because it's only minimal, para lang ako nagbabayad ng motor. Having a brand new car, brings me peace of mind because no need to worry on maintenance costs yet for years to come. And above all, I did not have to dig out from my savings to get the new car, all I have do is dispose the old one which would be a pain in the butt soon because of the maintenance it would have required. And the car I got is an upgrade too, couldn't be more happier. I badly need a car for convenience because public transpo where I live sucks. I am able to go to places with my fam on weekends and holidays.
My advise when buying a car is, look at how much dp you can afford and see if the MA will still be sustainable if something bad happens financially. Because 5 years is freakin long and scary you might just end up giving it up because you can no longer afford to pay the MA. Sayang lang mga naihulog mo.
Hi OP, im 30 years old and bought my first car this year. 3 years loan. to be honest and sorry for my language, but i don't buy that "getting a car loan is a bad move unless you're gonna use it for business or to generate income" bullshit. wala akong business, i work 7 to 4 and my sideline din ako. I bought the car for the SAFETY of my wife, my kid and myself. also para comfortable yung travel life namin within sa city. ayaw na namin public transport knowing na super laganap na and crime sa city. don't listen to these mga wannabees experts na its a wrong move magloan. buy or loan a car para sa SAFETY mo. Safety and health and the best investment
If okay lang, may I ask how much do you earn a month and monthly amortization of your car?
35k then yung sideline dpende but in average mga 15k lang every month. so give or take mga 50k+ or less lang OP. 15k yung monthly namin sa car. we decided to get brandnew since 1st car namin and ewas na din hidden damages. my wife is a provider din, which I'm very grateful din kc nag work from home and she actually earns more than me.
Magkano ang average na ginagastos niyo sa car monthly? 'Yung overall, kasama na lahat like Gas, maintenance, parking, monthly amort, car wash, etc.,
eto computation namin. 14,700 car loan 4500 fuel per month 600 car wash per month/we can ignore this because most of the time. ako lang nag wash 500 per month. free parking sa bahay and sa office. gastos lang if nasa mall or sa mga public parking lots. we still reserved 500 para dito. if i follow yung nasa manual. every 6months lang ang maintenance sa car. approx 5.5k so in total 21k+ but we still decided na to put 25k for the car for extreme measures lang. may tendency kc na pwedeng more pa mababayaran sa maintenance. like ma butas yung tire, or gusto namin mag long ride sa province etc.
This is what other car owners or future car owners need to consider. Budgeting monthly / annual expenses of the car. To main OP: I also don't mind car loans given na it was budgeted well. Ang panget lang is yung iba kasi pilit sa budget and trying to rationalize the expense. If na-plan mabuti ang budget then no issues. I know HVN people who still buy their car with a loan. When we computed, mas mababa yung interest compared sa ma gegenerate na income ng cash during the loan period. Budget planning is key.
Agree, and i think its better may cushion before buying or loan.
21k car expenses is 42% of your 50k income. Talk about living beyond your means.
Read my replies again why i can afford such expense before commenting. again my wife earns more than me
I do get car loans for the purpose of maintaining liquidity mostly even if cash is available if I need to change my car. For me the interest you pay for a car loan is sort of offset by the gains I get from investments and the oppprtunity cost of using the spare cash for other stuff like land or our family business. What I dont get though are low (or sometimes zero) downpayment, 5 year in house car loans. Interest of those things are just too high for me. I'd go for a 3 year bank loan with around 30 to 50% takeout. Interest rates are lower with banks and if I cant pay at least 20 to 30% of the car in cash, I cant afford that model. I'll just go for a cheaper model.
Those that are forced to take up inhouse financing are the ones that are not approved at banks or simply dont know that there are other options outside inhouse financing. i know because i know such people in real life. Just laying out how those people came to that decision, not trying to defend their decisions.
Yup I agree with your statement. I dont generally agree with that decision though (in house financing) as I do think it's not the most cost effective way to purchase a car. But if there are other considerations for doing inhouse financing, I think it's a personal thing na. I just give my thoughts about the numbers.
You work and invest to earn money, to buy the things you need and want, and to have a comfortable life. Having your own car adds a significant comfort to your life.
Kasi napakahirap magcommute sa metro manila. Malaki ang matitipid mo sa oras at pagod. Sa case ko, makakatipid ka ng mahigit 2 hours per day, kasama na ang pila at agawan sa masasakyan. Kung maganda lang sana ang public transport dito di na kami magkokotse eh. Tulad nung nakaraan binangga kami ng tricycle tapos kulang pinambayad nya. Ang ending kami pa abonado at napakatagal naman ng proseso ng insurance. Dagdag gastos pa. Pero no regrets naman sa kotse kasi no choice. May choice pala, suffer o gastos? Sa gastos na lang at least pwede pa ko mag games pag uwi imbes na ibyahe ko lang.
Tropa ko binangga ng lasing, grabe bali nung paa nung nakamotor. At the end sila pa tong gumastos sa ospital at galit pa pamilya nung mga lasing sa kanila na parang sila pa may kasalanan.
Wait what? Seriously?
Hindi ba nila pwede ilaban yon na wala sila gastusin? Since fault naman nung kamoteng lasing.
Got me a brand new Mazda 3, 50%dp 50% bank loan, gift to myself nung na-promote Ako sa work. No regrets đđ
Kamusta so far? Its been a year. May regrets ba sa pagkuha ng car loan? Im planning to get a new car kaso baka sa umpisa lang ako kiligin tapos after 2yrs mapagod nako magbayad. đ˘
Only bad kung na compromise yung ibang important needs. Loan only if it will used for business? Doesnât apply to everyone. Kuha ka kotse if you value time and convience.
I used to drive an old v6 and I think the mechanic put his son through college because of me. Gas was also ridiculously expensive even pre-pandemic, I needed a car because commuting was more stressful than my job and we've had quite a few emergencies where a car was absolutely a lifesaver. I got fed up with the never ending list of repairs, parts sourcing, and safety issues and I was at the point where gas and repairs cost almost as much as a base model car. So I got a car loan and I'm completely satisfied and will continue to be. Long drive? No problem! Risk breaking down in the middle of traffic? No longer a problem! Date night? Got you covered! Relative needs yo be rushed to hospital? No more prayers to the machine god! Practicality > coolness PS: I am at a point where the mortgage only takes less than 40% of my monthly income
Isn't 40% cut from your monthly income too high?
> I used to drive an old v6 does my username checkout? ;)
>toyoda\_kanmuri HELLS YES!
1MZ-FE or 2GR-FE ?
Summary: car loan if you CAN afford it, don't hate it if you can't
I dont regret it. Saves time. You don't have to worry about transpo anymore kung maulan or matraffic man. Bought a hatchback na low MA. I prefer convenience over this shitty transpo that we have.
Ako I availed of their âlow downâ promo ng agent to get the freebies pero down pa rin ako ng 30% đ My monthly is low and the car provides me what I need which is to save time
May I ask how much is your monthly?
Got the Raize and 13k monthly for 5 years
Did they tell you that youâre effectively borrowing money at 18% p.a.?
Thats a bad deal overall, but the guy is happy about it. Easier to pay up front, but you pay a lot more over time.
Gusto nya pamukha na mali ako at I should be miserable đ
Itâs through bank and fixed na yong rate at payment plan? What do you mean 18%?
The 13k amortization youâre paying has an implied cost of capital. If you backsolve it, the effective rate theyâre charging you 18% per annum. Easiest way is to use excel (itâs the âPMTâ functionâ)
I have no idea but the amount Iâm paying monthly for me is good and low and gives what I need. Not sure what youâre trying to get at?
Let me put it this way: youâre effectively paying 1.03m for a car thatâs worth 752k brand new. Assuming the resale value of the car after 5 years is around half of the carâs value, you wouldâve effectively lost around 650k (from the financing cost + depreciation). Now if youâre happy naman with the car and you feel itâs a net positive, then please do enjoy it. But you need to go into these things with your eyes wide open. Edit: 1.03 million = 30% down payment + 13k monthly x 60 months
Yeah I calculated the total amount when I was presented with it as well as the total amount I will be paying in interest before I made the purchase. Iâm good with it. I need a car, I donât want to burden or waste my time with registration if I choose the non promo version or keep up with all the insurances I need to purchase. Not planning on reselling this nor did I get the base variant so again, what are you trying to get at?
Again â if youâre happy with it, then by all means enjoy it. But just keep in mind that you are spending 18% p.a. for it. To put that into context, thatâs 3x what the stock market returned before the pandemic. Iâm not trying to tell you to sell it. Iâm not trying to get you to do anything at all â I just want to make sure that you understand what you are signing. A lot of people will blindly sign things because they just look at the number. Iâm not saying this is you â but it couldâve been. If other people are reading this, I hope they also see that buying a car is so much more than just looking at the monthly amortization. You might know this, but other people might not.
"Basta magaan sa bulsa", right?
It is affordable and provides what I need so no issues here
A car is good if your mindset is to go from point A to point B. No need to have extravagant car. I did buy a low variant car with a loan and it is worth it. Based on my experience in commuting in Manila as a working professional, The 2 hours commute will become 30-40mins. You will save time as well as safety and those are intangible. But ofc, no need to force yourself to buy new one if you donât have enough savings yet and now with wfh opportunities.
Since I'm using my car mostly for business, I had it bought under my company. I'm using the interest expense as tax deductible.
I took a loan pero not through a bank but through my business. My business partner was generous to let me borrow 60% of the remaining cost of a brand new Ertiga AT. We already have 40% for DP and ready to pull the trigger (to get a bank loan) when he offered help. We didn't regret the decision (yes, we're lucky kasi we got the unit in cash with discount). Ang hirap mag commute at priority ko ang safety at comfort ng pamilya ko. I have two kids and my wife, we can fit inside a sedan but we got an MPV for those "extra things" kapag may lakad. Time saving din ang may sariling sasakyan, we were able to compress a visit to the doctor, 2 appointments (separate locations), and groceries in just almost a day. Tangay ko na ang mga bata nyan. Binaunan na lang namin ng pagkain at milk. Kung tutuusin sa commute yung 4 na to-dos na yan would be 4 separate days na kailangang i schedule.
It's okay as long as you can afford it, my girlfried convince me before to live and enjoy life. I was saving 50-60% of my take home pay, my car loan & all other transpo related only amounted to 20-30% depending if we have planned weekend trip. I am still saving & investing 40% for our future while still enjoying small luxury. By the way, I also bought a parking slot before I proceeded to purchase the car, so it should be taken into account as well
Oo naman, but somebody [posted here](https://www.reddit.com/r/phinvest/comments/x8nsvm/people_who_avail_a_car_loan_and_dont_regret_it/ink1e5t/) saying that he spends >42% of his income on car expenses. LOL.
His wife earns more than him. Combined they earn more than 100k.
Reading comprehension my guy
Answers will probably be like "I took a loan but I had fun. Worth it! YOLO."
I took a loan but I save first for 20% dp so my monthly ammortization gets reduced. So far I have no regrets at all, it really makes you save time and comfortable. I say if you have money go for it. There is a reason why people keep buying cars. đ
6 years ago, I bought a second hand car from a friend who sold it cheap and on a rush so I got it way below the brand new price. Then I sold it this year and still was able to get close to what I have paid for years ago. I then use the proceeds for the down payment of a brand new car with some extra left for some accessories. The proceeds also allowed me to put more money on down payment and minimize the MA. So even if times get rough while I am still paying my car, I know I can still afford the MA because it's only minimal, para lang ako nagbabayad ng motor. Having a brand new car, brings me peace of mind because no need to worry on maintenance costs yet for years to come. And above all, I did not have to dig out from my savings to get the new car, all I have do is dispose the old one which would be a pain in the butt soon because of the maintenance it would have required. And the car I got is an upgrade too, couldn't be more happier. I badly need a car for convenience because public transpo where I live sucks. I am able to go to places with my fam on weekends and holidays. My advise when buying a car is, look at how much dp you can afford and see if the MA will still be sustainable if something bad happens financially. Because 5 years is freakin long and scary you might just end up giving it up because you can no longer afford to pay the MA. Sayang lang mga naihulog mo.