The Right Time to Buy a Brand New Car

**slapz** · August 30th, 2012 01:45 PM

financial, personal, need, want, and other factors.

Probably for those who are not born rich.

What is the right Monthly Salary?

Is it when you have enough money in the bank to purchase a car in cash?

Is it when you think you can handle the Monthly Amortization?

Kelan nga ba? Now, later, or never?

**1D4LV** · August 30th, 2012 01:55 PM

imho, there is always not the right time.
because getting a new car is not a wise investment due to depreciation, cost of maintenance, fuel, insurance, etc....

it would always depend on the buyer, based on his needs and affordability.

personally, nagkakaroon lang ako ng brand new car dahil part of company's benefits, wherein sagot nila at least 50% of the cost. but if i would have to rely on my own resources, i'll save first and would get a second hand, 3-5 year old car, in cash. at least, hindi ako talo sa MA and depreciation ng bagong sasakyan. oo, medyo costly in terms of maintenance, pero it still negates the cost of having to pay the MA + maintenance + overhead charges. and i get only what I need, based on a five year projection method, tapos benta na.

**uls** · August 30th, 2012 02:07 PM

buying a car is wealth destruction coz you end up with an asset worth less than all the money you put in

**slapz** · August 30th, 2012 02:09 PM

So, have you bought your brand new cars? What made you?

**yebo** · August 30th, 2012 02:33 PM

true lahat sinabi nila, kung purely from the point of view of finance buying a brand new car is not wise since it depreciates the minute it rolls out of the dealership. add to that the cost of maintenance and insurance.

but for me i always buy brand new for something i can never substitute with money. peace of mind. i am away from my family half of the time. my wife drives when i am not there, my kids are in the car. i sleep soundly. can't have that with a 2nd hand.

the right time depends on your finances. personally if my total monthly amortization (house, car, insurance, etc) is less than 30% of my income, or i can still meet my savings goals (which for me is at least 20% of my income) then i would. pero if i can not meet either of the 2 then waiting and saving mode na lang muna ako.

**stavros** · August 30th, 2012 02:37 PM

Ang magandang rule dyan is dont buy it when you cant pay it in cash. This way, you will strive to save more and by the time you have enough money,youll realize that you dont need it and just keep the savings.

**slapz** · August 30th, 2012 02:44 PM

Originally Posted by yebo

true lahat sinabi nila, kung purely from the point of view of finance buying a brand new car is not wise since it depreciates the minute it rolls out of the dealership. add to that the cost of maintenance and insurance.

but for me i always buy brand new for something i can never substitute with money. peace of mind. i am away from my family half of the time. my wife drives when i am not there, my kids are in the car. i sleep soundly. can't have that with a 2nd hand.

the right time depends on your finances. personally if my total monthly amortization (house, car, insurance, etc) is less than 30% of my income, or i can still meet my savings goals (which for me is at least 20% of my income) then i would. pero if i can not meet either of the 2 then waiting and saving mode na lang muna ako.

So you are saying, 30% of Income should be Housing and Car Amortizations? Then 20% is Savings, So 50% is Living Expenses.

So for example, a dude who has a salary of 100K a month, that is about 68K net. So 20.4K should go to housing and car, if you are paying 10K for the house, you got 10.4K to buy a car, which is something like an Accent/Vios or something. Really, if you have 100K Salary, you can just afford a subcompact sedan?

I think ideally that is what it is. But how much can you stretch it?

**slapz** · August 30th, 2012 02:46 PM

Originally Posted by stavros

Ang magandang rule dyan is dont buy it when you cant pay it in cash. This way, you will strive to save more and by the time you have enough money,youll realize that you dont need it and just keep the savings.

This like saying never. Given a montly salary scheme. If you are saving for a house, how can you save for a car? So, a house you can loan? Car you should pay in cash?

**CoDer** · August 30th, 2012 02:50 PM

Originally Posted by stavros

Ang magandang rule dyan is dont buy it when you cant pay it in cash. This way, you will strive to save more and by the time you have enough money,youll realize that you dont need it and just keep the savings.

Wag na lang kamo syang bumili ng car pag sundan natin sinabi mo.