Did you know that back in the early ‘70s, a brand new sedan only costs around P50,000? Now, you need to have at least half a million pesos to buy one straight out! Yup, saving up for a car is no easy task, but it’s a milestone worth looking forward to. Want tips? Get them straight from these Cosmo girls:
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Tip: What I did was analyze my finances first to see if I could really afford it. I didn't just consider the cost of the car, but the gas, maintenance, and repair costs as well. After visiting several car dealers and weeks of careful consideration, I decided it would be most economical for me to just go for a second hand car. If you're planning to buy one, understand your finances first, spend only within your means, and never sacrifice your basic needs.
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Tip: Set aside a certain amount every payday, and open a separate bank account for it. Once you have enough, use it as down payment for an auto loan. That was what I did because I really needed the car na then. I just used my savings as initial payment and chose a long payment term para mas affordable ang monthly amortization.
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Tip: Get a side job if you can. If you’re availing a car loan, save for a big down payment so you won’t have to deal with high monthly payments. Also, make sure you have a good credit history on your other previous loans or credit card payments.
The Basic Rules of Saving
There are hundreds of tricks in the book on how you can save money, but they all boil down to these three:
1. Save regularly.
Map out your monthly income and expenses, and from there decide how much you’re going to set aside for your dream car. 10% per paycheck is a good start.
Open a separate bank account for your car fund so you won't be tempted to use your savings for your new ride. Better be safe than sorry the next time you feel that sudden urge to shop!
2. Cut back on your expenses.
A habit as simple as skipping your daily fix of designer coffee could save you thousands of pesos a month! While you’re at it, trade those expensive ready-to-eat meals for home-cooked ones, too. Rethink your subscriptions—from cable to gym membership to phone plan. Why spend money on something you rarely use?
3. Find additional sources of income.
Get a part-time job. Why not tutor your neighbor’s kid or offer to babysit? #werq. Or you can hold a garage sale. We’re sure you’d rather earn money from your old clothes and shoes, than let them rot in your closet.
The Best Option
You don’t need to overextend yourself just to afford your dream car. You can always avail of an auto loan which helps you get a car sooner and gives you the freedom to pay for it according to your spending capability. Just choose the loan package that fits your lifestyle best. (Check out our write-up about it here.)
If you want easy-on-the-pocket monthly payments, opt for a large down payment and long payment term. Also, make sure to shop around before choosing a bank, as each has its own add-on rates to compute for interest.
Our pick? BPI Family Savings Bank! For starters, they have low interest rates and flexible payment terms. Plus, applying for an auto loan is a breeze! You can do it via BPILoans.com or at their 800+ branches nationwide.
Click here to learn more about BPI Family Auto Loan.