Practical Car Buying
May 11, 2020 - This article has been updated with the ECQ and GCQ Quarantines in mind. In our opinion, now more than any other time is the time to be practical about your car choices.
Practicality in the ECQ and GCQ World - Why Be Practical in the New Normal?
Let's face it... with a looming worldwide recession and a virus pandemic that as-yet has no cure, now is not a great time to be splurging and buying a brand new car. We feel you - who doesn't want the new car smell, with all the latest bells and whistles that money can afford? If you have enough money to spare and know you can tide yourself and your family over for the next (put estimated no. of months here) while the world copes with this new normal, then in all honesty, we are happy for you, and go for it.
But... if you're like us and many Filipinos, and you're scared for what tomorrow will bring, or when this crisis will be over and want to make your money and savings stretch as long as possible, then perhaps it's time to take a long hard look at more practical transportation options.
But Why Buy a Car in the First Place?
Well, if you're the work-from-home type, then maybe there isn't a pressing need... but if you need to go to work to earn a living once GCQ and a lifting of quarantine happens, then you probably need a car now, more than ever. If you're a doctor, nurse or any other frontliner, then that need is double (side note: Automart.Ph gives special discounts as a thank you to our frontliners).
Let's face it - Philippine cities like Manila, Cebu and Davao haven't had great public transporation systems in the best of times. Now imagine cutting that capacity by half because of the mandate to have social distancing? Imagine trying to fall in line at the MRT station while practicing social distancing. We really hate to say it, but that probably won't work, unfortunately.
Maybe you really feel the need for a car nowadays, and the question is really just where do you buy a car and how do you do it? Do you buy a brand new car, or a practical, great value used car?
What Does it Mean to Be Practical, really?
Being practical means not buying a brand spanking new car just yet. A car loses up to 35% of its value just within the first year! Just imagine the money you can save from buying a slightly used repo compared to the money that will be spent paying for a new car. The extra money you save can be used for emergency funds, your children’s tuition, home renovations, or that out-of-town vacation you’ve always wanted. You can really make your money stretch out longer by buying a good quality used car. In the end, your family and your wallet will thank you for making the practical choice in buying a car - again, especially in today's trying times.
Why Is It More Practical to Buy a Used Car?
There are a lot of reasons for you to choose a used car over a new one, and here are some of the biggest:
You won’t be spending as much
Prices of used cars are always lower than the price of a brand new one. In fact, the prices of some very slightly used cars are 40% lower compared to similar new cars, even if it has only around 3,000 km on the odometer. Imagine for a moment that you’re buying a one million peso car, but instead pay P700K for it instead, simply by buying a repossessed or used car - that extra P300K can be used to buy yet another, cheaper car like a Picanto - slightly used ones can be had for sub P300K nowadays! 2 cars for the price of 1? Now that’s practical!
No outrageous fees
Most consumers are easily drawn to the low down payments offered by car dealers, only to be bombarded by high monthly fees after the initial deposit. If you’re a practical spender, this is a big red light to avoid. Try adding up all the monthly payments, chattel mortgage fees, and other fees to see just how much more you’re spending in interest - it’s shocking!
Brand new cars can depreciate quickly making them an impractical choice. The moment you take that new car from the dealer and drive it home, its value has started to drop, and it will continue to do so for months and even years. With second-hand cars, the bulk of the depreciation had already passed, so if your thinking of selling your second-hand car 3 years from now, you’ll only be chomping off another 20% or so of the original value - not bad!
Reduced costs on customization
New cars can sometimes come with pricey dealership add-ons and customizations. You don’t have to worry about that when purchasing a used car. You can install your own add-ons at a lower price compared to a brand new car.
In this day and age, one needs to be more “wais” or practical when it comes to investing in something like a car. You should not feel embarrassed or ashamed if you bought a used or second-hand car. A lot of used cars nowadays are just as durable and efficient as brand new ones, so you should give yourself a pat on the shoulders if you decided to opt for a second-hand car because you’re getting the same high quality at a fraction of the cost. In addition, you can thoroughly inspect the car you plan to purchase yourself or with a mechanic that Automart.Ph will provide for you.
Now is the Time to Be Practical
Again - we're not trying to rain on your parade. But we do want to tell you that there's a great way to get an almost-new car for a great discount vs. brand new, and that's by buying them from Automart.Ph - we sell low-priced, high quality used and repossessed cars.
Talk to us at 0927-887-6400 and learn about your hundreds or even thousands of options. Visit our website. Happy driving!