# Buying a car



## Danman (Mar 23, 2016)

I have been thinking of buying a car, most second hand cars in the Philippines are very expensive I would like a Ford Ranger because I live on a farm and during the wet season very hard to access with a normal car. I checked out the price between a secondhand Ford and a brand new one and I believe its best buying a new Ford. I went to my BPI bank and asked about a loan as I have been banking with BPI for five years and my pension goes into the BPI as well. The lady at BPI informed me Foreigners cannot get a loan, I did not ask if my filipna wife could apply because the lady was very busy at that time. Has anyone have any ideas, otherwise I will buy a secondhand car.


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## bidrod (Mar 31, 2015)

I bought a new Hyundai Tucson last July and I am a foreigner. I did it through my BDO branch. I have been here since 2010 and still on a Tourist Visa. 

Chuck


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## Danman (Mar 23, 2016)

Hi bidrod I heard BDO was better than BPI, I will change banks and have a chat with them, thanks mate


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## bidrod (Mar 31, 2015)

I have an Aussie buddy here in the subdivision and he bought a new van through BPI, think it is possibly just the person you talked to is the problem. I deal directly with my branch manager and never have a problem, even got a BDO credit card and the car loan I got at 68 years old.

Chuck


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## Danman (Mar 23, 2016)

maybe it was just the person I spoke to as the lady at BPI was in a hurry, I will try talking to the manage and see what happens thanks Chuck.


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## Asian Spirit (Mar 1, 2010)

You're a long way from Luzon Island but if you can manage a trip to Subic Bay there are vehicle auctions there on 2nd hand cars, buses, and trucks. Most are converted from right to left hand drive and have known people that have bought there. From what I've been told they had good luck.
Check This Link for a list of the auction houses there.


Jet Lag


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## Danman (Mar 23, 2016)

I visit Subic a lot as my mate is building a boat right next to a holding yard they use when bringing truck in from overseas, so I will chat my mate there and ask a few question ..thanks


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## Danman (Mar 23, 2016)

You are right bidrod the BPI does give car loans to foreigners, BPI has a car loan assessment section on its website and it includes foreigners.


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## Tiz (Jan 23, 2016)

Danman said:


> You are right bidrod the BPI does give car loans to foreigners, BPI has a car loan assessment section on its website and it includes foreigners.


I just worked out the interest rate for one of their examples is over 17% per annum.
:bolt:


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## fmartin_gila (May 15, 2011)

Tiz said:


> I just worked out the interest rate for one of their examples is over 17% per annum.
> :bolt:


Thats shameful that they can charge that kind of rate, especially on a secured loan. Isn't there any other way to do, possibly even getting a personal loan from a US bank you keep an account with? Having been debt free since about 2000 and only pay cash for anything I buy, I am not at all familiar with interest rates but this seems rather high. Maybe you should reconsider your strategy. Perhaps you could purchase a used vehicle that would be serviceable and slowly save enough to get a new one in the future. Depreciation on a new vehicle is terrible anyway and you will be compounding your costs with having to pay interest on a depreciating asset.

Fred


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## Gary D (Oct 28, 2013)

fmartin_gila said:


> Thats shameful that they can charge that kind of rate, especially on a secured loan. Isn't there any other way to do, possibly even getting a personal loan from a US bank you keep an account with? Having been debt free since about 2000 and only pay cash for anything I buy, I am not at all familiar with interest rates but this seems rather high. Maybe you should reconsider your strategy. Perhaps you could purchase a used vehicle that would be serviceable and slowly save enough to get a new one in the future. Depreciation on a new vehicle is terrible anyway and you will be compounding your costs with having to pay interest on a depreciating asset.
> 
> Fred


Those sort of interest rate are normal in the Philippines. Also the word depreciation doesn't appear in the Philippine dictionary. Someone selling a 10 year old car is going to be looking for as near to what they paid for it or more if the new price has risen in the meantime.


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## bidrod (Mar 31, 2015)

My interest rate with BDO was less than 6% pa.

Chuck


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## Gary D (Oct 28, 2013)

bidrod said:


> My interest rate with BDO was less than 6% pa.
> 
> Chuck


Still double what I can get in the UK


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## bidrod (Mar 31, 2015)

Gary D said:


> Still double what I can get in the UK


Well I am not in the UK.


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## Tiz (Jan 23, 2016)

BDO website quotes total interest rates.
3 years 16.48%	
4 years 22.38%	
5 years 29.51%

My calculation makes that over 10% per annum for each of the above .


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## Gary D (Oct 28, 2013)

Tiz said:


> BDO website quotes total interest rates.
> 3 years 16.48%
> 4 years 22.38%
> 5 years 29.51%


I suspect they are using simple interest. Whereas we are more used to APR so 6% per year would be 18% over 3 years or 30% over 5 years.


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## bidrod (Mar 31, 2015)

Mine with BDO was actually 5.63% over 3 yrs. So that would be 16.89% over 3 years.


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## bidrod (Mar 31, 2015)

This would be from BDO today:

Know your Maximum Loanable Amount Based on a Range of Downpayment Options
Result
Vehicle Purchase Price	Php 1,080,000.00
Loan Term	36
Down Payment %	25%
Down Payment	Php 270,000.00
Max. Loanable Amount	Php 810,000.00
Monthly Amortization	Php 26,208.00
Minimum Monthly Income	Php 65,520.00
Rate	16.48%


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## Gary D (Oct 28, 2013)

Here in the UK personal loans are around 3% APR, that would be about 1.9% or 5% over 3 years by Philippines reckoning


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## bidrod (Mar 31, 2015)

This is from HSBC

£ 
20,000
Select to show help text
Over how many months? 
36
Select to show help text
Representative example
for Illustrative purposes
Monthly repayment
£613
Total amount payable
£22,068.15
Representative
6.7% APR
Interest rate
6.7% p.a. (fixed)


Santander UK

epayment Calculator

How much do you want to borrow?


£20,000
£1,000£20,000
Over how long?


36 months
12 months60 months
Results
Monthly repayment£586.76
APR Representative3.6%
Total to repay£21,123.36
Provided by Santander UK plc


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## DonAndAbby (Jan 7, 2013)

You really can't compare PH rates to UK or US rates. It is what it is in each country and risk / reward for the lender is far different in PH. I'm betting they have a lot more repo's here.

Actually those BDO rates sound a lot better than I thought you could get here. I may have been misunderstanding the way they state the rate.

One thing I have heard is that they do have very high pre-payment penalties, so watch out for that if that is of concern for you.


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## DonAndAbby (Jan 7, 2013)

Jet Lag said:


> You're a long way from Luzon Island but if you can manage a trip to Subic Bay there are vehicle auctions there on 2nd hand cars, buses, and trucks. Most are converted from right to left hand drive and have known people that have bought there. From what I've been told they had good luck.
> Check This Link for a list of the auction houses there.
> 
> 
> Jet Lag


No more imported and converted cars being sold in Subic now. Noynoy Aquino came through town a few years ago and saw all of the cars, and put a stop to it. Apparently cars were never supposed to be part of the deal.

The truck, bus and heavy equipment imports are going crazy and all of those business' are expanding a lot. But no cars.

You can still buy the "used" imported and converted cars on OLX, etc.


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## esv1226 (Mar 13, 2014)

if i were to buy a used car, which website should i be browsing? salamat.


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## bigpearl (Jan 24, 2016)

esv1226 said:


> if i were to buy a used car, which website should i be browsing? salamat.


As DonandAbby mentioned, OLX is a good place to start not only for cars but pretty much what ever you are looking for.

Cheers, Steve.


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## Irene Rivera (Aug 4, 2017)

bigpearl said:


> As DonandAbby mentioned, OLX is a good place to start not only for cars but pretty much what ever you are looking for.
> 
> Cheers, Steve.


*OLX* is a mixture. It's better to have car bought on auto web like *Philkotse, Carfinder......*


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## bigpearl (Jan 24, 2016)

Irene Rivera said:


> *OLX* is a mixture. It's better to have car bought on auto web like *Philkotse, Carfinder......*


Hi Irene welcome to this forum. While OLX can be a mixture I find it an interesting look see for all things great and small. Like most sites such as these you need to be specific with your search to get results, Philkotse appears interesting but " Carfinder....." what? A little more info site specific would be helpful if the moderators don't mind would be helpful.

Cheers, Steve.


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## chili.pepper (May 24, 2017)

bigpearl said:


> Hi Irene welcome to this forum. While OLX can be a mixture I find it an interesting look see for all things great and small. Like most sites such as these you need to be specific with your search to get results, Philkotse appears interesting but " Carfinder....." what? A little more info site specific would be helpful if the moderators don't mind would be helpful.
> 
> Cheers, Steve.


It's right, Carfinder isn't a best choice, but More Choices, More Chances, right?


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