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Discussion Starter · #1 ·
I have been thinking of buying a car, most second hand cars in the Philippines are very expensive I would like a Ford Ranger because I live on a farm and during the wet season very hard to access with a normal car. I checked out the price between a secondhand Ford and a brand new one and I believe its best buying a new Ford. I went to my BPI bank and asked about a loan as I have been banking with BPI for five years and my pension goes into the BPI as well. The lady at BPI informed me Foreigners cannot get a loan, I did not ask if my filipna wife could apply because the lady was very busy at that time. Has anyone have any ideas, otherwise I will buy a secondhand car.
 

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I bought a new Hyundai Tucson last July and I am a foreigner. I did it through my BDO branch. I have been here since 2010 and still on a Tourist Visa.

Chuck
 

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Discussion Starter · #3 ·
Hi bidrod I heard BDO was better than BPI, I will change banks and have a chat with them, thanks mate
 

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I have an Aussie buddy here in the subdivision and he bought a new van through BPI, think it is possibly just the person you talked to is the problem. I deal directly with my branch manager and never have a problem, even got a BDO credit card and the car loan I got at 68 years old.

Chuck
 

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Discussion Starter · #5 ·
maybe it was just the person I spoke to as the lady at BPI was in a hurry, I will try talking to the manage and see what happens thanks Chuck.
 

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You're a long way from Luzon Island but if you can manage a trip to Subic Bay there are vehicle auctions there on 2nd hand cars, buses, and trucks. Most are converted from right to left hand drive and have known people that have bought there. From what I've been told they had good luck.
Check This Link for a list of the auction houses there.


Jet Lag
 
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Discussion Starter · #7 ·
I visit Subic a lot as my mate is building a boat right next to a holding yard they use when bringing truck in from overseas, so I will chat my mate there and ask a few question ..thanks
 

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You are right bidrod the BPI does give car loans to foreigners, BPI has a car loan assessment section on its website and it includes foreigners.
I just worked out the interest rate for one of their examples is over 17% per annum.
:bolt:
 

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I just worked out the interest rate for one of their examples is over 17% per annum.
:bolt:
Thats shameful that they can charge that kind of rate, especially on a secured loan. Isn't there any other way to do, possibly even getting a personal loan from a US bank you keep an account with? Having been debt free since about 2000 and only pay cash for anything I buy, I am not at all familiar with interest rates but this seems rather high. Maybe you should reconsider your strategy. Perhaps you could purchase a used vehicle that would be serviceable and slowly save enough to get a new one in the future. Depreciation on a new vehicle is terrible anyway and you will be compounding your costs with having to pay interest on a depreciating asset.

Fred
 

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Thats shameful that they can charge that kind of rate, especially on a secured loan. Isn't there any other way to do, possibly even getting a personal loan from a US bank you keep an account with? Having been debt free since about 2000 and only pay cash for anything I buy, I am not at all familiar with interest rates but this seems rather high. Maybe you should reconsider your strategy. Perhaps you could purchase a used vehicle that would be serviceable and slowly save enough to get a new one in the future. Depreciation on a new vehicle is terrible anyway and you will be compounding your costs with having to pay interest on a depreciating asset.

Fred
Those sort of interest rate are normal in the Philippines. Also the word depreciation doesn't appear in the Philippine dictionary. Someone selling a 10 year old car is going to be looking for as near to what they paid for it or more if the new price has risen in the meantime.
 

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BDO website quotes total interest rates.
3 years 16.48%
4 years 22.38%
5 years 29.51%

My calculation makes that over 10% per annum for each of the above .
 

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BDO website quotes total interest rates.
3 years 16.48%
4 years 22.38%
5 years 29.51%
I suspect they are using simple interest. Whereas we are more used to APR so 6% per year would be 18% over 3 years or 30% over 5 years.
 

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This would be from BDO today:

Know your Maximum Loanable Amount Based on a Range of Downpayment Options
Result
Vehicle Purchase Price Php 1,080,000.00
Loan Term 36
Down Payment % 25%
Down Payment Php 270,000.00
Max. Loanable Amount Php 810,000.00
Monthly Amortization Php 26,208.00
Minimum Monthly Income Php 65,520.00
Rate 16.48%
 

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Here in the UK personal loans are around 3% APR, that would be about 1.9% or 5% over 3 years by Philippines reckoning
 

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This is from HSBC

£
20,000
Select to show help text
Over how many months?
36
Select to show help text
Representative example
for Illustrative purposes
Monthly repayment
£613
Total amount payable
£22,068.15
Representative
6.7% APR
Interest rate
6.7% p.a. (fixed)


Santander UK

epayment Calculator

How much do you want to borrow?


£20,000
£1,000£20,000
Over how long?


36 months
12 months60 months
Results
Monthly repayment£586.76
APR Representative3.6%
Total to repay£21,123.36
Provided by Santander UK plc
 
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