Car Chronicles Part 1
+ Why I ended up with a Toyota Wigo TRD S +
I was truly eyeing for a subcompact, especially KIA Stonic, which was just recently released. They even have a promo! Reagan was against this as I have not driven a car for a long time and I might have a problem in parking a large car.
I then made my sights to Kia Soluto, which for me was the better option vs. Reina and Brio due to the stuff it has on. We began researching it and talking about it for a few days until one night Reagan said something foreshadowing on how I might end up with a Wigo.
I was already telling him that I'm not going for one because it's too small but after researching for a while, I realized that maybe what I need is just a practice car that would make me more confident on the road. I was really on to a huge car for obvious reasons, I wanted a car that would take me and our families together but then he is right, it's something we could just purchase later on. After all this is just my first car.
Initially I looked at Toyota Vios, and compared the specs. What the heck. All the features I want are in the Wigo which are only available at the Vios but at almost double the price. I was just aiming for the mid tier of Vios, which costs the same as the high end Wigo so, the answer is really clear. Why would I even aim for a much more expensive car when I can get it on something priced extremely lower?
NOTE: As of writing: Toyota Vios 1.5 G is 1,056,000 while the Toyota Wigo TRD S is at flat 700k.
+ So for a first car, why not something old? +
I am not and would not attempt for an old car because I know I'm not that brave nor quick thinking to troubleshoot a used car. I have experienced for so many times problems I am not sure how to resolve if it was me behind the wheel. I mean if I would have really liked an old one, I would have just gotten the family car we had that I was ok being sold. For me, the peace of mind that a newer car provides lifts another obstacle from being confident in driving. Besides I felt like if I get a new one, I would assure of it's longevity once I give it to my sisters once I'm good with getting a bigger vehicle. For now this should do.
+ I'm really doing it! +
The next day I've reached out to the nearest dealer and was given a quotation of how much it would cost. I was also able to contact a bank to compare rates (in-house vs bank financing) and after a few comparisons, the bank was just a better option for me. If you're a newbie as well, here's the things I found out:
In-house
1. You get a DP discount that is usually not advertised. If you're strapped in down payment money, this is a good option to have. But do understand that by making a lower DP, your principal for financing increases. If you think you're saving money through a lower DP, no it doesn't. In-house financing is expensive already, so lowering your DP more exacerbates your accrued interests further.
2. You don't need to worry about so much paper work. Since you're not dealing with the bank, the only papers you need are within the confines of the dealer. If you have no means of procuring valid documents (ITR perhaps, which is a bank requirement), maybe do this route.
3. There's a possibility that you can get the car the next day if with stocks because the approval involved is just within the dealer unlike with banks.
4. Also, based on the computation you get a few "savings" in insurances. Seeing it in caps as FREE is enticing. Again, computing it against the total of what you will pay for the term years will show you how much it would cost along the line but! If you don't have the cash to pay for it upfront, this is a viable option.
Bank
1. As everyone says, yes, the rates are lower with the bank and this is also because of #2.
2. The lowest DP in banks is 20%. This is true with properties as well. Buying a car in cash is better obviously but again, not everyone have the full amount ready, or in my case, I don't want to be dangerously low in cash. Most of money are in investments which are not liquid and I don't want to tap there ever. As I've said earlier, this is just an opportune time for me because I will have some substantial money free due to some circumstances and the timing is just perfect.
3. I was told that if you have a good relationship with your banker, you might even get good deals. I'll put this in mind once I decide to get a new one after this. There could either be almost new cars in their roster or maybe a slightly lower interest (!).
4. Some dealers have their own banks of choice but if you're in the same boat as mine, it's both as Mr. Monk says, both a gift and a curse. Having the dealer their own banks limits you in your options, especially if it's a bank you still need to open a bank account with. But because they're in close relations, they might assist you in getting better deals, or in processing. In my case Toyota Shaw doesn't have any so I have to reach out on my own with different banks to get the ball rolling. I have only reached out to one bank which upon checking on the loan simulations online offer the better amount even if it's just a tiny difference. It deemed like an excellent choice because the banker I talked to not only shares the same name (well different spelling but you get it) but she's a nice one as well. As of writing, I'm still waiting for results and hopefully I'll be approved on my first try. If this doesn't work, I might get another bank to try or worse. I'd end up with the in-house option instead :-(
*This piece was written on 12/30/2020 but wasn't published until today, 1/9/2021
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