# Purchasing New Vehicle for Us Older Folks



## bidrod (Mar 31, 2015)

Decided to purchase a new vehicle here in the Philippines. As most know if you get a loan to finance a vehicle here they normally want 20% down payment, with financing from 24-60 months. Also most loans are to be paid off by reaching 65 years old. I am currently 68 years old. Working with my BDO branch manager I secured a loan with 25% down with 36 months financing, the loan department wanted 30% down and because of my age will only go 36 months. We will pay the car off early next year so the loan term is immaterial. Just letting you know that loans are still possible for us old farts. Personally could care less about a new vehicle but the asawa has never had one so worthwhile from that standpoint. Suggest all to establish a good working relationship with your bank branch manager. They can be very helpful. Think the asawa will be happy with her new Tucson.

Chuck


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## hogrider (May 25, 2010)

bidrod said:


> Decided to purchase a new vehicle here in the Philippines. As most know if you get a loan to finance a vehicle here they normally want 20% down payment, with financing from 24-60 months. Also most loans are to be paid off by reaching 65 years old. I am currently 68 years old. Working with my BDO branch manager I secured a loan with 25% down with 36 months financing, the loan department wanted 30% down and because of my age will only go 36 months. We will pay the car off early next year so the loan term is immaterial. Just letting you know that loans are still possible for us old farts. Personally could care less about a new vehicle but the asawa has never had one so worthwhile from that standpoint. Suggest all to establish a good working relationship with your bank branch manager. They can be very helpful. Think the asawa will be happy with her new Tucson.
> 
> Chuck


Thanks for that Chuck. Can I ask what interest rate you are paying.
David


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## bidrod (Mar 31, 2015)

hogrider said:


> Thanks for that Chuck. Can I ask what interest rate you are paying.
> David


15.63% that is why I will pay off early next year.

Chuck


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## Donwarner87 (Jan 18, 2016)

I thought expat can't buy a car here. Only the spouse. What's the rules?


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## galactic (Dec 2, 2014)

bidrod said:


> 15.63% that is why I will pay off early next year.
> 
> Chuck


Better be clear with your Early Settlement details. 
They still charge a hefty interest even if you pay off early.
Also be prepared to personally facilitate all of the documents of the vehicle. 
If it's registered in Manila and you're in the boondocks better talk seriously to your bank manager on how to ease the transfer.


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## bidrod (Mar 31, 2015)

Donwarner87 said:


> I thought expat can't buy a car here. Only the spouse. What's the rules?


If you are married it is community property. If you are not married it is yours. You can't own land.

Chuck.


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## bidrod (Mar 31, 2015)

galactic said:


> Better be clear with your Early Settlement details.
> They still charge a hefty interest even if you pay off early.
> Also be prepared to personally facilitate all of the documents of the vehicle.
> If it's registered in Manila and you're in the boondocks better talk seriously to your bank manager on how to ease the transfer.


Aware of that fee and the contact has been modified accordingly, still paying some but not the hefty amount. Not in the boondocks and have a great branch manager. The decision to take the option will be made at the appropriate time.

Chuck


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## hogrider (May 25, 2010)

bidrod said:


> 15.63% that is why I will pay off early next year.
> 
> Chuck


Yes that is a pretty hefty rate. Will you have to pay high settlement fees if you settle early?
I will be looking to buy a Ford Ranger Wildtrack when we move there full time next year. Gotta finish the house first........


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## SimonAngeles (May 10, 2016)

Donwarner87 said:


> I thought expat can't buy a car here. Only the spouse. What's the rules?



No problems with buying anything other than land


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## bidrod (Mar 31, 2015)

hogrider said:


> Yes that is a pretty hefty rate. Will you have to pay high settlement fees if you settle early?
> I will be looking to buy a Ford Ranger Wildtrack when we move there full time next year. Gotta finish the house first........


The 15.23% is what they call the total add on rate which is the yearly rate times 3 since it is a 36 month loan. Yearly APR would be 5.21%. Sorry for the confusion.

Chuck


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## DonAndAbby (Jan 7, 2013)

bidrod said:


> The 15.23% is what they call the total add on rate which is the yearly rate times 3 since it is a 36 month loan. Yearly APR would be 5.21%. Sorry for the confusion.
> 
> Chuck


That is very reasonable. I didn't think car loan could be that low here. Tucson are really nice. Did you get a diesel?

Side note on vehicles to consider if anyone is looking. I used to have an Avanza that I liked a lot except it was very utilitarian. Honda is coming out with a competitor to the Avanza, the B-RV. Sounds really nice for only p800,000. No diesel though, high mileage gas. I have always been a Honda fan, but I own a Chevy right now.


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## bidrod (Mar 31, 2015)

DonAndAbby said:


> That is very reasonable. I didn't think car loan could be that low here. Tucson are really nice. Did you get a diesel?
> 
> Side note on vehicles to consider if anyone is looking. I used to have an Avanza that I liked a lot except it was very utilitarian. Honda is coming out with a competitor to the Avanza, the B-RV. Sounds really nice for only p800,000. No diesel though, high mileage gas. I have always been a Honda fan, but I own a Chevy right now.[/Q
> 
> ...


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## DonAndAbby (Jan 7, 2013)

bidrod said:


> DonAndAbby said:
> 
> 
> > That is very reasonable. I didn't think car loan could be that low here. Tucson are really nice. Did you get a diesel?
> ...


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## 197649 (Jan 1, 2013)

Being 63 not an issue for me. China bank 20% down 18 months 7.29%. Since my arrival here we have purchased 3 cars. All were purchase 2 from Chevy 1 Ford. My wife was the comaker. The vehicle are not an issue but when it comes to LTO well you know the deal.


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## bidrod (Mar 31, 2015)

This is the Ruby Wine 2016 Tucson we bought.

Chuck


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## pijoe (Jul 21, 2015)

After 3 years in Iraq I would love to own a Hi Lux. It is one bulletproof truck. My reality with businesses though is a Hi Ace van, which I also like but the base version has uncomfortable seats. Constantly running for restaurant supplies and using the van as a side business as a for hire vehicle helps to recoup costs. An old F-J with the B4 diesel is also a favorite of mine, and quite cheap in the Philippines compared to the States... I will have to be happy with my Harley's... only so much money to go around... LOL!


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## hogrider (May 25, 2010)

pijoe said:


> After 3 years in Iraq I would love to own a Hi Lux. It is one bulletproof truck. My reality with businesses though is a Hi Ace van, which I also like but the base version has uncomfortable seats. Constantly running for restaurant supplies and using the van as a side business as a for hire vehicle helps to recoup costs. An old F-J with the B4 diesel is also a favorite of mine, and quite cheap in the Philippines compared to the States... I will have to be happy with my Harley's... only so much money to go around... LOL!


Hi pijoe
What Harleys do you have? Do you have them in Fils? Did you buy them there or import them?
I would love to bring my Landrover and Harley across, but from what I read the duty will make it an expensive exercise.

Cheers


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## pijoe (Jul 21, 2015)

hogrider said:


> Hi pijoe
> What Harleys do you have? Do you have them in Fils? Did you buy them there or import them?
> I would love to bring my Landrover and Harley across, but from what I read the duty will make it an expensive exercise.
> 
> Cheers


 Yes, I buy the big bikes here in the Philippines. Unless you are on a SRVV visa and want to import a very new bike it is not worth it. As an American I am very used to the very soft Harley Davidson market in the States. I can buy and flip big twins for under $4,000 dollars. In the Philippines and Australia, Europe, New Zealand, ect,it is easily double plus a bit. There are a couple places to get a good product at a good price with good papers. If you are in the market for a Sportster with good papers they start at PHP 400,000. Big Twins add PHP 200,000 for a serviceable EVO. Twin Cam FLH 1 million plus. Lots of good stuff out there though. PM me if you want to buy and I could send you in the right direction without violating rules of the forum. Nice V-rod out there right now in Magalang. (near Angeles)


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## hogrider (May 25, 2010)

pijoe said:


> Yes, I buy the big bikes here in the Philippines. Unless you are on a SRVV visa and want to import a very new bike it is not worth it. As an American I am very used to the very soft Harley Davidson market in the States. I can buy and flip big twins for under $4,000 dollars. In the Philippines and Australia, Europe, New Zealand, ect,it is easily double plus a bit. There are a couple places to get a good product at a good price with good papers. If you are in the market for a Sportster with good papers they start at PHP 400,000. Big Twins add PHP 200,000 for a serviceable EVO. Twin Cam FLH 1 million plus. Lots of good stuff out there though. PM me if you want to buy and I could send you in the right direction without violating rules of the forum. Nice V-rod out there right now in Magalang. (near Angeles)


My current Harley is a Sportster '48 with V&H Shorties, Screaming Eagle Heavy Breather & Stage 1 Kit. Plus a large rear wheel kit. Its a 2012 model but only has 18,000km on it. I would expect to sell that here in Dubai for the equiv of 400,000 to 450,000. Not sure how a Sportster would handle the roads in Fils, doesn't have a lot of suspension travel...!!!


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## pijoe (Jul 21, 2015)

I am an old school FLH rider in the States. Wouldn't consider anything else. My ride in the Philippines is a 2002 Sportster Custom. I am 6'2 so the forward controls help me fit on the bike quite a bit. I know this EVO platform stem to stern so It does not leave me stranded. The Sportster platform is a great bike for the Philippines considering it's ground clearance,my bike goes everywhere I do... mountains, beach, sand, ect.... Big twin is too heavy in PI for "Go anywhere" use... IMHO... peace.


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## pijoe (Jul 21, 2015)

I am running Progressive 412's in the rear and Progressive suspension fork springs up front as well and I ride it like I stole it.....


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## hogrider (May 25, 2010)

pijoe said:


> I am an old school FLH rider in the States. Wouldn't consider anything else. My ride in the Philippines is a 2002 Sportster Custom. I am 6'2 so the forward controls help me fit on the bike quite a bit. I know this EVO platform stem to stern so It does not leave me stranded. The Sportster platform is a great bike for the Philippines considering it's ground clearance,my bike goes everywhere I do... mountains, beach, sand, ect.... Big twin is too heavy in PI for "Go anywhere" use... IMHO... peace.


Thats great input, thanks. I will definitely get back to you closer the time, maybe you can hook me up with a nice Sportster. Cheers,


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## Cebu Citizen (Dec 13, 2013)

galactic said:


> Better be clear with your Early Settlement details.
> They still charge a hefty interest even if you pay off early.
> Also be prepared to personally facilitate all of the documents of the vehicle.
> If it's registered in Manila and you're in the boondocks better talk seriously to your bank manager on how to ease the transfer.



*This is ABSOLUTELY CORRECT!!!!!*

I did the same thing and made a critical error. I bought a brand new vehicle here and because I had just purchased a new condo in Manila, I thought...no problem...I will just finance the vehicle for the short term and then pay it off early. I did not care about the down payment nor the interest rate nor the length of the term because my intention was to just pay it off in about eight or ten months anyway...BUT I made one failed decision...I failed to check the penalty for early pay-off on my 36 month loan and it was ridiculous! Something like a 20% penalty on the balance owned!

So...if anyone finances a vehicle here with the desire for an early pay-off...check the terms of the agreement first and specifically ask for a loan that will allow for an early pay-off. It was my fault, my mistake and now my loss...

What I ended up doing was to calculate the amount of interest I will pay on the remainder of the monthly loan payments and then calculate the 20% early pay-off penalty and when the two were so very close to the same amount, then I paid the loan off early because the penalty was now the same as the interest I would have been paying anyway but now I do not have to make payments every month and the old monthly payment amount is now free available cash on hand.


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## hogrider (May 25, 2010)

pijoe said:


> I am running Progressive 412's in the rear and Progressive suspension fork springs up front as well and I ride it like I stole it.....


I did have Progressive 412's on the rear, but they dropped the ride height by about 1/2 inch. Was OK for solo riding but once my GF (now wife) came into the picture, I had to put on a pillion pad for her and the ride height then was just too low, touching down pegs on every bend, so I ended up putting the HD units back on.


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## pijoe (Jul 21, 2015)

hogrider said:


> I did have Progressive 412's on the rear, but they dropped the ride height by about 1/2 inch. Was OK for solo riding but once my GF (now wife) came into the picture, I had to put on a pillion pad for her and the ride height then was just too low, touching down pegs on every bend, so I ended up putting the HD units back on.


Actually I am running Progressive 412 Heavy Duty. I am 230 pounds. The stock length for a Sportster Custom is 11.5. I put on 12 inchers adjustable damper Heavy Duty. Works well with me, the wife, and gear. I will however buy your shocks if you ever want to sell. I have a pretty good parts warehouse going at my shop now....


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## galactic (Dec 2, 2014)

To add; you could request for a zero interest early pay off scheme (max 12 mos). AFAIK some banks allow this as long as you are a prime client or the dealership is trying to get their sales quotas. 
Also, if you're getting a car loan and you have been qualified ask for ALL the freebies you could think of.
Tint, matting, rustproofing, registration, etc this adds up to a significant amount.
I asked for a roof rail on top of the above items 



Cebu Citizen said:


> *This is ABSOLUTELY CORRECT!!!!!*
> 
> I did the same thing and made a critical error. I bought a brand new vehicle here and because I had just purchased a new condo in Manila, I thought...no problem...I will just finance the vehicle for the short term and then pay it off early. I did not care about the down payment nor the interest rate nor the length of the term because my intention was to just pay it off in about eight or ten months anyway...BUT I made one failed decision...I failed to check the penalty for early pay-off on my 36 month loan and it was ridiculous! Something like a 20% penalty on the balance owned!
> 
> ...


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## hogrider (May 25, 2010)

pijoe said:


> Actually I am running Progressive 412 Heavy Duty. I am 230 pounds. The stock length for a Sportster Custom is 11.5. I put on 12 inchers adjustable damper Heavy Duty. Works well with me, the wife, and gear. I will however buy your shocks if you ever want to sell. I have a pretty good parts warehouse going at my shop now....


Sounds like a plan. I will put them in my bag on my next trip.


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