The deceptive schemes when buying used cars

[hk blues]

3 hours ago, RBM said:

Why strange? Who gives a shi....about cost? Its all about affordability with down payment, even the monthly payments have little or any significance

I agree that things such as total cost, APR etc etc are not that relevant to many buyers as it's all about the affordability but I'm not sure the monthly payments are of little significance - I'd say it's the most important number.  When buying a new car here, the down payment is of little significance as it's usually so low, at least nowadays.  

[Tommy T.]

Maybe this will help?

The wisdom I have had shared with me is to avoid the cars with Manila or Luzon plate series and some others. The reason being that many of them have been caught in floods, cleaned up, then sold as high quality used cars.... This may or may not be true.

But as someone on the forum recently stated, any cars may have flood water damage, so buyer beware. Also recently, another member suggested that the price of used cars is very close to the price of new cars - and without warrantys. I just bought a new car with a 100,000km 3 year warranty (Toyota).  While the dealership was a hassle to deal with,  I ponied up the cash and bought the new car, reckoning that the warranty would make it worthwhile. I will never put 100ki on a car in three years here, but the Toyotas have and great reputation. Count them next time you are out on a road! 
 

2018 series

Registered vehicles from July 1, 2016, and beyond will have the same alphabetical designation as in the 1981 license plate series.

• A – Ilocos Region (Motorcycles only)
• B – Cagayan Valley
• C – Central Luzon
• D – Calabarzon
• E – Bicol Region
• F – Western Visayas
• G – Central Visayas
• H – Eastern Visayas
• I – Ilocos Region
• J – Zamboanga Peninsula and Bangsamoro Autonomous Region in Muslim Mindanao
• K – Northern Mindanao
• L – Davao Region
• M – Soccsksargen
• N – National Capital Region
• O – Calabarzon
• P – National Capital Region
• Q – National Capital Region
• R – Central Luzon
• S – Government-owned Vehicles
• T – National Capital Region
• U – National Capital Region
• V – Mimaropa
• W – Central Luzon
• X – National Capital Region
• Y – Cordillera Administrative Region
• Z – Caraga

[RBM]

19 hours ago, hk blues said:

I agree that things such as total cost, APR etc etc are not that relevant to many buyers as it's all about the affordability but I'm not sure the monthly payments are of little significance - I'd say it's the most important number.  When buying a new car here, the down payment is of little significance as it's usually so low, at least nowadays.  

Not so sure, I visited the Repossessed yard for the BDO Bacolod a while back....totally full......strikes me these ex owners did not do their home work before purchasing.

[Tommy T.]

2 hours ago, RBM said:

Not so sure, I visited the Repossessed yard for the BDO Bacolod a while back....totally full......strikes me these ex owners did not do their home work before purchasing.

Agreed completely .... It appears to me that most Filipinos do not reckon on the long term cost of vehicle ownership, rely on getting loans either from the banks or illegal.. Then time runs out, they don't have the cash so the vehicle is repossessed. 

That's how I bought my motorcycle.....

 

[hk blues]

4 hours ago, RBM said:

Not so sure, I visited the Repossessed yard for the BDO Bacolod a while back....totally full......strikes me these ex owners did not do their home work before purchasing.

 

1 hour ago, Tommy T. said:

Agreed completely .... It appears to me that most Filipinos do not reckon on the long term cost of vehicle ownership, rely on getting loans either from the banks or illegal.. Then time runs out, they don't have the cash so the vehicle is repossessed. 

That's how I bought my motorcycle.....

 

Yep, same with houses.  In our street alone of 20 houses at least 2 that have been repossessed. 

However, we shouldn't forget we have just come out of a pandemic and many have seen a hit to their finances that wouldn't have been predicted.  I suspect banks and other lenders (ahem) are less understanding than perhaps in our own countries when dealing with such a situation. 

[Tommy T.]

On 11/3/2023 at 11:28 AM, hk blues said:

 

Yep, same with houses.  In our street alone of 20 houses at least 2 that have been repossessed. 

However, we shouldn't forget we have just come out of a pandemic and many have seen a hit to their finances that wouldn't have been predicted.  I suspect banks and other lenders (ahem) are less understanding than perhaps in our own countries when dealing with such a situation. 

You may be correct. However I bought my "repossessed," motorcycle several years before the pandemic. And after chatting with my partner, L, many times, it is the way of this country. Buy whatever you want or need and then get a loan to pay for it - either legally or illegally. She has told me about many acquaintances she knows who do that for their income - illegal loans. It is sad, but the only way many can purchase what they want or need.... 

[hk blues]

28 minutes ago, Tommy T. said:

You may be correct. However I bought my "repossessed," motorcycle several years before the pandemic. And after chatting with my partner, L, many times, it is the way of this country. Buy whatever you want or need and then get a loan to pay for it - either legally or illegally. She has told me about many acquaintances she knows who do that for their income - illegal loans. It is sad, but the only way many can purchase what they want or need.... 

All correct, but nothing whatsoever to do with my point which was that the monthly repayment figure is the most important number regardless of whether folk ignore it or not.

 

[Possum]

1 hour ago, hk blues said:

All correct, but nothing whatsoever to do with my point which was that the monthly repayment figure is the most important number regardless of whether folk ignore it or not.

True and many have trouble making the payments which is why no money is left over for maintenance. However, car sales are increasing and the traffic is getting correspondingly worse with no end in sight The worst traffic I have seen was in Jakarta and at one time Caracas. Manila is quickly approaching that level of gridlock complete with zero law enforcement outside the major metros] and practically nonexistent driver education.. One solution would be to employ the Singapore car ownership scheme but that will never happen. I drive only when no safe public transportation is available which sadly is 50% of my travel requirements.

[hk blues]

4 minutes ago, Possum said:

True and many have trouble making the payments which is why no money is left over for maintenance. However, car sales are increasing and the traffic is getting correspondingly worse with no end in sight The worst traffic I have seen was in Jakarta and at one time Caracas. Manila is quickly approaching that level of gridlock complete with zero law enforcement outside the major metros] and practically nonexistent driver education.. One solution would be to employ the Singapore car ownership scheme but that will never happen. I drive only when no safe public transportation is available which sadly is 50% of my travel requirements.

Until 4 months ago I didn't drive here but as the modern jeepneys are becoming more common (not a bad thing) the availability of public transport is less than before, at least in my area.  That, coupled with my son's new school being much further away, led me to deciding to get a car.  For sure, you need to be 100% focused and rarely drive at night but the traffic here is manageable for the time being.