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The 5 Essential Steps: How To Save Money To Buy A Car

11 january 2023

The 5 Essential Steps: How To Save Money To Buy A Car

A private vehicle may let you move freely and flexibly. So, do you know how to save money to buy a car? A specific plan brings to a goal faster! Discover more!

>> Read more Car for sale in Philippines: https://philkotse.com/cars-for-sale

How To Save Money To Buy A Car

Figure Out Your Car's Valuable

In the Philippines, more than 2,000 vehicles are on offer, ranging from body types such as Sedan, Hatchback, Crossover, SUV/MPV, Coupe, Pickup Truck, Van, and Wagon. They come from many different brands and prices, both used and new. You can refer to the table below for each brand:

Brand

Used Models Price Range (₱)

New Models Price Range (₱)

Ford

298,000 - 4,600,000

1,310,000 - 8,980,000

Honda

175,000 - 1,348,000

650,000 - 3,210,000

Hyundai

123,456 - 2,500,000

790,000 - 3,240,000

KIA

270,000 - 1,038,000

700,000 - 3,235,000

Mercedes-Benz

488,000 - 4,280,000

14,600,000 - 93,000,000

Mitsubishi

170,000 - 2,850,000

697,000 - 1,280,000

Nissan

300,000 - 1,488,000

1,336,000 - 10,580,000

Suzuki

310,000 - 748,000

563,000 - 1,285,000

Toyota

215,000 - 7,998,000

568,000 - 13,500,000

Calculating Expenses After Owning

This step is intended to prevent you from losing money and adding pressure after purchasing a car.

If you choose to buy an automobile in installments, usually, you have to pay 20% in advance and then pay monthly. Depending on the term, this amount can range from a few thousand to several hundred thousand pesos.

Next, you need to calculate the estimated cost for the next five years because usually, the value will change the most after this period.

Whether you intend to sell it, you should calculate the depreciated value each year. After the first purchase, the price will reduce by 15% and a further 10% off for each subsequent year. Then, there are the necessary expenses such as insurance, gas, maintenance and repair, and parking.

Establish A Savings Plan

When you have a specific number, it will be easier to plan and set goals to realize it. Based on your monthly income and expenses, you should determine how much money you have left for this goal. Sometimes you must give up a few unnecessary spending habits to save more.

In addition, you can refer to preferential policies from banks such as credit, installment loans or savings interest rates, etc., for better profitability.

Build An Account

You should make accounts for its purchases separately to avoid overspending. And the selected bank should be convenient for money transfer, good loan interest, or savings, in line with the saving plan you set out.

Learn How To Negotiate

You often think that only buying a used automobile requires this skill; however, it is necessary at any time.

Although specifying the vehicle value, downpayment, and monthly installment, some dealers still add the "negotiate" line to reduce the financial burden on customers. They also have links with banks that create their installment policies for their customers where you can get reasonable offers.

In addition, you should consult prices and support policies from many agents to easily compare and negotiate wisely.