New Car Buying

[BrettGC]

12 minutes ago, hk blues said:

We're in the market for a new car so have been doing a bit of research - It seems cash discount is a No No and in fact several dealers are offering discounts for particular banks' financing. Makes sense - I'm pretty sure the dealership will receive some form of commission from the bank when a finance package is sold. 

Yep, that's pretty much world-wide for vendors of any type to to receive a commision for pushing clients towards a "favoured" finance provider.  

[Gas]

No real discount for cash, but you may be able to get 5 to 10k knocked of at certain dealership's. I bought a new Fortuner at the beginning of May and Toyota San Pablo was 10k cheaper than Toyota Calamba and Batangas. They had the unit in stock and i added a few extras, so it took 2 days.

We have financed new vehicle's in the past and i understand why the sales agents push for finance, as they make very little from cash sales. If your looking for finance and have a relationship with a local  bank it usually works out around 1k a month cheaper to go direct to the bank rather than the agent sorting out loans. 

One of the reasons you cant get a straight answer out of the sales agents is due to the fact they are restricted to working only  one or maybe two days at the dealership, so sometimes don't know exactly what is going on!

I can PM you the sales agents name and number in San Pablo if you want. She fairly knowledgeable compared to some of the other agents!  

 

[Gator]

I don’t know about here, but I’m sure it’s a similar arrangement. In the USA the dealers have agreements with the banks for set rates based on the consumers credit rating. Let’s say the rate the dealer gets is 4% and they write the loan 4.5%. Dealer gets 0.5% profit off the loan. More often than not it’s significantly higher. And that’s above and beyond any other “dealer prep” and “transportation cost” fees they tack on; or the highly profitable “extended warranties” they try to sell you (which are basically insurance policies). 

[Tommy T.]

On 6/15/2023 at 6:21 AM, Lee said:

I would look at getting a bank repo car myself. The Metrobank where we do business downtown has had several cars sitting out front for months.

Buyer beware, of course.

Be very beware.... Cars sold here in Mindanao commonly come from Luzon or Manila. Many have been damaged by floods. I have been advised by local Filipinos to avoid buying cars "imported" from cyclone struck zones.

And, as someone wrote in a post some time ago, used car prices are close to new car prices - they just don't discount used cars here like they do in many other countries - such as USA or Canada for example. 

We are also about to buy a new car and the dealers are very strict and rigid about prices, "discounts" and any extras. Looking online and new car prices here are as high or higher than in USA for the same models. There's a lot of money here in Phils to be bled from foreigners willing to pay cash price and locals (mostly paying usurious rates for loans).

[OnMyWay]

58 minutes ago, Tommy T. said:

Be very beware.... Cars sold here in Mindanao commonly come from Luzon or Manila. Many have been damaged by floods. I have been advised by local Filipinos to avoid buying cars "imported" from cyclone struck zones.

And, as someone wrote in a post some time ago, used car prices are close to new car prices - they just don't discount used cars here like they do in many other countries - such as USA or Canada for example. 

We are also about to buy a new car and the dealers are very strict and rigid about prices, "discounts" and any extras. Looking online and new car prices here are as high or higher than in USA for the same models. There's a lot of money here in Phils to be bled from foreigners willing to pay cash price and locals (mostly paying usurious rates for loans).

Side rant:  If you want a higher end imported car, prepare to be ripped off.  I am in a Chevrolet FB group and a sales guy at a Chevy dealer posts.  Yesterday, Camaro 2.0 RS, p4,066,888, about 73000 USD.  Same car in US is 35k USD.

We have some Sri Lankan friends who have a successful truck import business.  The Sri Lankans and Pakistanis all want to drive Toyota Landcruisers.  They should cost ~ 5 million plus pesos.  The dealers are trying to get 10 mil with a waiting list of one yearish.  If you make "extra upfront payment" of 1 mil, only takes 1 month.

[BrettGC]

Well the Toyota in-home servicing was just completed minutes ago.  It was the our first 10000km service so fluids were replaced as were the filters, brake pads checked and cleaned as well as a courtesy wash, vacuum and surfaces wiped down with Armorall.  They were here for about 2 hours 30 mins. 

Total cost 9600PHP or $250AUD.  The same service in Australia would have cost $400AUd or 15340PHP and we would have had to go to them and waited hours - or drop the car off for the day -  with no complimentary wash etc.  I know it's $400 in Australia, I checked just prior to posting this.  Two mechanics and 2 admin people showed up so the usual PI personnel bloat but that's their issue not mine. 

The Minister for Finance and War and myself are very happy with the process.  

[Lee]

11 minutes ago, BrettGC said:

Well the Toyota in-home servicing was just completed minutes ago.

Toyota came to your house to do this work??? Wow.

Our mechanic picks up our car at our home when it needs repair but they take it to their shop to do the work.

[BrettGC]

16 minutes ago, Lee said:

Toyota came to your house to do this work??? Wow.

Our mechanic picks up our car at our home when it needs repair but they take it to their shop to do the work.

Yep, it's a new service they offer.  As I said in a previous post, we live about 2 and a half hours away from the nearest Toyota service centre so this is invaluable for us.  They only charge 690PHP for the home visit.  

[Mike J]

5 hours ago, BrettGC said:

Yep, it's a new service they offer.  As I said in a previous post, we live about 2 and a half hours away from the nearest Toyota service centre so this is invaluable for us.  They only charge 690PHP for the home visit.  

This has me doing some serious thinking for sure.  Cebu City for us is 2 1/2 to 3 hours away depending on traffic.  And once in the city, traffic is a nightmare.

[OnMyWay]

6 hours ago, BrettGC said:

Yep, it's a new service they offer.  As I said in a previous post, we live about 2 and a half hours away from the nearest Toyota service centre so this is invaluable for us.  They only charge 690PHP for the home visit.  

There are a lot of shops offering home services now, but I never heard of a dealer doing it.  Although some services can easily be performed outside the shop, I always thought a big plus for using a dealer (and paying dealer prices) was that they do a thorough inspection based on the manufacturer specs.  I can't see how all that stuff can be done correctly without a lift.

Maybe they have a portable lift system or jack stands, and just use a creeper like in the old days?