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Discussion Starter · #1 · (Edited)
As the standard of living increases, the need to buy a car becomes more and more essential. Owning a 4-seater or 7-seater car today is not only to show wealth and affluence but also to serve a lot for work and convenience for travel. So a problem is raised "Should I pay 20000 Php to buy a family car on installment?"

Currently, although the lending procedures have been greatly simplified by banks, in general, personal income still affects the decision on loan approval.
According to information from banks, car buyers can buy used and new cars in installments if they have an income of 8-10 million/month or more along with a number of other criteria. Specifically, those are criteria such as:
  • Borrower's credit history.
  • Monthly income of car owner's spouse (in case of joint ownership).
  • Owning valuable assets such as a red book, car, other income...
However, according to calculations, if you want to buy an ordinary car, the buyer must have at least 30% of the car's value. Currently, banks only lend up to 70% of the value of the car, both used and new cars.
Many people who do not have much money to pay for a car often choose to pay by installments. However, many people also raise the question: Should a Salary 20000 Php be enough to buy a family car on installment?
For example, a math problem needs to be solved in case the family saves some money and wants to buy a 5-seater economy class A or B car at a reasonable price in the form of installment payments for 5 years.

With a 5-year loan package, the average interest rate is about 11%/year. Thus, for the first month, both the principal and interest of car buyers will not be equal to everyone's income. Subsequent years will be less due to diminishing returns. Note that when buying a car on installment, the buyer needs to pay the principal monthly, not one time at the end of the period. Thus, a fast calculation each month needs to pay about 10000 Php for 5 years.
Next, with a basic family, every day go to work and go out for about 15-20 km plus about 300km to go home or travel for nearly a month. On average, the car will travel about 1,000km per month. For ordinary cars, the fuel consumption is about 8 liters / 100km.
If there is no parking space, every month, car owners lose about 5000 Php for hard parking and when going out. Add repair, maintenance, depreciation and other charges.
From the above calculations, anyone who wants to buy a car can calculate with current and future income, is buying a favorite car through installment payment appropriate and feasible? With that calculation, those with Salary 20000 Php can fully pay in installments for a long time.
Installment brings a lot of benefits to those who want to buy a car. Therefore, if you have a stable income but do not have money to buy a car, you can also choose this form. Hopefully through that, people will have a certain understanding when choosing a car by installment payment.
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