The Philippine car market has grown for the last 20 years. More and more families can now afford to buy a new car. With tons of low downpayment schemes and much easier loan processing in banks, Filipinos can now easily get the keys to their dreams and drive away. However, with all the enthusiasm, some people regrets getting their dream car. As they would pay ridiculous monthly payments on such a depreciating valued property. So here are my list you need to know in getting a new car.
1. CHECK YOUR FINANCIAL STATUS.
It is a MUST to check and estimate your financial capability even before the banks do it for you. And ask yourself.
- What is my threshold in monthly amortization?
- Does getting a car will affect my monthly house rent, utilities, etc.?
- Will it affect my family’s immediate needs?
- All of these and more must be think through first. After all, it’s an investment that depreciates right after you drive away from the showroom. This process will help you a lot in deciding later on and cut down the drawback of price haggling.
2. KNOW YOUR BUDGET.
Whether you pay in full or pay it monthly, the best is to decide on your base budget. This allows you to be fully aware to your hard-earned bank savings and how much you are willing to pay for your big purchase.
3. WHAT TYPE OF CAR DO YOU REALLY NEED?
Again, the key here is to be a wise car buyer. Compulsiveness tends to be come your worst enemy later on. Whether you are opting for the most cheapest car of the lot or the most premium unit, it boils down on how the car will be used for the next 3-5 years or more. Whether it’s a kei-car or a luxury SUV, as long as it will help you day in and day out without a fuzz.
- Have a list of cars you have in mind and write/type them.
- Check the car maker’s official website. Know the specs and tech included.
- Check online reviews, testimonial or forums that shows their unbiased opinion on such cars you have in mind.
- Depreciation Value must be considered. Check Carmudi, AutoDeal.com.ph or OLX.ph and the likes for current street value the car you wanted to buy.
- Try also to check for an online CAR LOAN CALCULATOR like the ones in BDO. it is a nifty tool.
* This might also help you to check great deals currently in offer by companies or dealers.
4. SEE THE ACTUAL UNITS AND COMPARE.
Armed with information, this is the time you check in with your local dealer. Whether you walk-in or set an appointment with them, for sure, they will greet you with full set of teeth and enthusiasm. That’s how sales people are trained for. However, don’t let them persuade you yet in buying the car.
- Always check first the Showroom and its display
- Check if they can do PMS and other services. (Some casas’ are not equipped with servicing tools for basic repairs)
- Schedule a test drive
- Ask for their retail price and current promos. They always have it.
- Cash Discounts are also helpful. Ask them the maximum amount they can give you if you’ll be paying in cash.
- Ask the sales agent what insurance companies to whom they are affiliated. This will help you in claiming your insurance in the long run.
5. ASK THE BANKS.
If you are satisfied with your choice, this is where you ask the banks if they can match the deals you got in the showrooms. True enough, bank financing requires more downpayment than in-house financing. Therefore, the monthly ammortization is much lower and will save you money in the long run. But then again, it really depends on your paying ability.
6. CHECK THE INTEREST RATES.
If loaning is the only option, check and compare the interest rates of the dealer and the bank. See what items that showroom can offer for free that the banks cannot and vice versa. TINT, VISORS, SEAT COVERS are a standard fare. But then again, it is all minor stuff and can be purchase outside the casa for less. LTO Registration for 3 years and Insurance with premium(acts of God) should be on top of everything else.
7. INSURANCE OPTIONS.
Aside from in house offerings and bank referrals, you can check with other insurance firms that may give you the best insurance deal. Moneymax.ph is a helpful site to see the latest insurance deals for your new car.
8. PREPARE THE DOCUMENTS.
It is important for you to compile all the necessary documents for your loan or your big purchase. Place them in a separate folio so that it will be much easier to hand it over to your bank or sales agent that will process your purchase.
9. FEEL THE CAR.
Once the documents are in, it is only a matter of time for you to grab the keys and drive it away. There will be no turning back. So feel the car that you chose. Check if it is the right one for you. Have an emotional contemplation that this is the car for you.
10. PRE-INSPECTION. RELEASE.
The day has come. You are finally having your first dibs in your brand new car. But first, check every nook and cranny. If the lights are working, scratches and moisture in the lights are big no-no. Paint scratches or any foul smell inside. Mileage can be checked as well. Because again, there’s no turning back after this.
Once satisfied. See the LTO documents and insurance details and store them nicely. If you are satisfied with everything, You can now drive away your brand new car and knowing you’ve done it wisely. Cargasm is totally fine. 🙂