Tag Archives: amortization

Car Sale Decline Expected for Brand New and Second Hand

In a time where finances are much of a burden, people are turning towards public transportation to get to their point of destination. For the time being that the economy is on a turnstile, sacrifices which include that of using your own car is not only a necessity but an option.

Through all of this you have to wonder how cars will fare. This covers both brand new and second hand vehicles in the market. In short, to gain extra income for rising expenses, selling your car may be an option. But that is if someone will buy it.

Through the years we have seen a lot of Filipinos buying second hand cars like the usual Toyota Corolla, Honda Civic or even the Mazda 323. But today, people have stayed away from them, seeing them as additional expenses as far as fuel and car maintenance is concerned. On the average you can expect to spend at least PHP 5,000.00 on a car for maintenance while gasoline varies depending on your destination. And no thanks to the regular price increases, people are left with nothing much to spend for gas these days.

For the brand new vehicles, who in his right mind can afford to spare on the average PHP 700,000.00 to PHP 1,000,000 on a car these days? They can always use the financial assistance from banks but can you handle the monthly amortization that ranges from PHP12,000.00 to PHP25,000.00 a month? That is like spending rent on an apartment and perhaps your monthly utilities and groceries already.

The point here is that cars are a luxury. While we all want to live in it, we just have to face the fact that now is not a great time to pursue it. We can dream of buying a car. But let us wait for the right time to do it.