difference of loan rates for used car and brand new

[rflores]

anyone here who has experience or at least who knows the actual loan rates for used cars? I see rates on bank websites, but I also noticed these figures change esp with what I see for bnew cars. I hope you guys can share. Im contemplating on going for the second hand car route, but am wondering if I'm saving significantly on that route.

[crazy_boy]

ang alam ko mas mataas talaga ang interest rate ng bank sa used cars compared to bnew cars

[1D4LV]

mas mataas ang used cars dahil depreciated na. the bank would need to factor that in plus they need to consider income.

[Retz]

anyone here who has experience or at least who knows the actual loan rates for used cars? I see rates on bank websites, but I also noticed these figures change esp with what I see for bnew cars. I hope you guys can share. Im contemplating on going for the second hand car route, but am wondering if I'm saving significantly on that route.

Sir, what is the year model and price of the car you are purchasing? we could see it from there kung justified ba. mataas nga interest eh baka mura mo naman mabili ung kotse.

[Syuryuken]

As high as 28% afaik

[Retz]

Just to give you a ballpark figure on STD rate of BDO insurance for brand new cars: 3yrs 16.05%, 5yrs 28.02%. You could compare it from there for used cars.

[rflores]

Thanks for the reply guys and sharing what you know.. Here is an example from BPI.

TERM BNEW USED
18 months 8.14% 14.35%
24 months 13.23% 21.05%
36 months 19.66% 30.15%

Cguro ang question ko is, is it also as flexible as BNEW rates knowing that BNEW rates ay pwede tawaran. AFAIK, BPI can go 17 or 16% pag 36 months term diba? So that's allmost a 4% decrease. Yun Used Rate kaya pwede bumaba ng ganyan?

[rflores]

Sir, what is the year model and price of the car you are purchasing? we could see it from there kung justified ba. mataas nga interest eh baka mura mo naman mabili ung kotse.

For example a Picanto at 300k, 2010?

[jinxee]

Not so flexible ang rates sa 2nd-hand financing versus brand-new since banks are aiming to minimize
the risk on their side. Una, depreciation, as the unit gets older the lower the value. Next is saleability
ng auto, they will factor in kung magdefault ba yung buyer pwede pa ba nila ibenta yung kotse? kung
di easily sellable yung unit matutulog lang yun sa bodega nila at continuous lang magdepreciate habang
nakatambak dun.

[leodawesome]

Panalo lang bumili ng 2nd hand kapag Cash Basis..Big dicount..kapag financing, better buy brand new..