PSA: Don’t buy the car with the affordable downpayment at the mall

We The Pvblic

We’re not experts, but we know a Php9000 all-in net downpayment sitting pretty at the mall is too good to be true.

Facebook user Jill M. Alcibar gives us the lowdown on what this marketing strategy is really worth:

The full text:

1. All their payments are forfeited and it’s easy to reposses the car? That this is what the dealers/banks are after because they can sell the car again?
2. If they want to restructure the loan they have to pay for the unreasonable penalty charges?
Do these people buying even calculate that they eventually end up paying 1.5x the value of the car in 5 years time due to the interest?
Katrina The money they used to amortize would have gone a long way if invested elsewhere. I would think that if properly invested in insurance/mutual funds, that same amount paid for that car would, in five years time, be an amount equivalent to buying two cars in cash plus more.
And what are the chances that the person who paid the 9k today changes his mind tomorrow (literally), remember you can’t drive away with the car on the same day? The chances are really high, trust me, as a former real estate lawyer representing the developer I had to deal with these scenarios where poor buyer doesnt get anything back from the reservation fee and even the downpayment in the same way that the 9k is bye bye to hapless Juan. I am not anti-car or anti-house. I am anti-debt.
Disclaimer: I am not in the finance industry nor do I claim to know where to put your money. These are simply my own thoughts and musings.

Just to be clear, she isn’t anti-car or anti-house. “I am anti-debt,” she ended. She disclaimed that these are simply her own thoughts and musings.

What do you think of this? Leave a comment below.

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