Financing Options in Buying Your Dream Car

Happy New Year guys! Hope you had a merry Christmas and have started the year by deciding to be proactive! If you’ve been dreaming of getting that dream car, then what are you waiting for? The key to achieving goals is to take the first, albeit baby steps. You could do the usual and save up, or you can opt for bank car financing or go down the easy route by signing up for a lease-to-own. Whatever option you choose, here are some tips and notes to keep in mind:

If you’re familiar with the board game Monopoly, then you’d know that when you don’t have any cash on hand, you can put your properties up for mortgage to get cash. Chattel mortgage is the same, it’s just that “Chattel” is a term for moveable personal property.

1. Lease-to-own. I just found out that Toyota Motor Philippines is the only company, as of press time, that offers this kind of financing option for its vehicles. With this option, you get to choose to pay from terms of 24 months to a maximum of 72 months. Which is 2 to 6 years, and a lot can happen in between. Once the payment is completed the title of ownership will be then transferred to you. You don’t get the luxury of being fickle with this kind of option because once you’ve realized that you’ve had enough of the vehicle, you can’t just sell it off. Also, you have to pay for premiums such as chattel mortgage fee and vehicle registration which you’d normally get for free when you purchase a brand new car.

2. Trade-in. Simply have your vehicle appraised by your trusted dealer. They usually give you the lowest possible value so it’s good to ask around first and be in the know if you plan on visiting a non- exclusive dealer.

 

3. Buy now, pay later. This kind of promo is usually just that. You get to drive the vehicle around for a couple of months, after which, you have to start paying up. What this does is simply give you more time to save up. A friendly reminder from your friends here at Automotive Parts Suppliers is to keep in mind that although these kinds of schemes are tempting, we have to be wise to live within our means.

4. Low down payment. You get to pay low down payment but higher monthly instalment fees. Depending on the vehicle of your choice, down payments can be less than Php100,000. When you encounter flyers with mind-boggling low amounts highlighted beside a vehicle, it is safe to assume that it is just the down payment. With long instalment plans (maximum is set at 60 months – that’s 5 years my dears) comes cheaper rates but higher interest fees that can spell Php250,000 on interest alone. Shorter instalment plans like 12 months or 24 months, however, sets you up at about P50,000 to Php200,000 every month.

5. Low instalment. This is the opposite of the “low down payment scheme”. You pay a bigger amount for your down payment but pay lesser amount on your monthly dues.

Don’t be afraid to speak up! Raise questions to your dealer if there’s something you don’t understand, and just a friendly reminder to be honest to yourself and to the dealer on how much you can afford to shell out every month. We wouldn’t want you to swim in financial worries just to attain that dream car of yours. Happy shopping!

About Crizia Nicole

Crizia Nicole is a free- spirited young lady whose passion is to travel, dream and live. People would normally be surprised to know that beneath her girl demeanor there lies a car enthusiast. She balances her day job at a major television network and her passion for writing. Check her out on Twitter.

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