A year ago I wrote about maybe replacing my 1996 New Ole Honda Civic, but then fate raised its ugly head and I had to have the engine re-built. Then as luck would have it, I now owned a car with a new engine that still looked and ran good. I was stuck between that preverbal “Rock and a Hard Place” Why get rid of a perfectly good running car.
When the engine ceased to function I was advised to sell it and buy a new car then. But have you ever tried to sell a car that was not running? Hey Boyet; “Would you like to take it for a test towing?”
Then money is always a concern, as I really don’t like getting a loan. The last loan I had for anything was when I purchased a new 1978 Lincoln Town Car, and I still only financed half of that car’s cost and then kept it in great shape for ten more years until I gave it to my Mother and Father to stop them from driving to Florida every winter from Massachusetts. So I’ve been debt free for the last 26 years.
So now I’m going to dip my toe back into the debt pool once more and purchase a new car. But even then I want to stay at the shallow end of the pool. So I checked with my Credit Union and found I had 7,500.00 in an old IRA that was only paying .25% interest, I could have made more burying it in a cigar box within my yard. So I closed it and will pay the income tax on it next year and use the lion’s share as a down payment on a “BRAND NEW (non-ole) CAR” Oh and I have the Honda pre-sold but can drive it until I have the new one. (Give the buyer a great price and they’ll work with you)
My credit union has preapproved me for the auto loan and said I could buy any car I’d like, But they won’t make that much off me as I will buy a basic car with the options I want and no Fancy-Dancy wheels for this old guy. The speed of the car is less important to me now, then the ease of parking the beast.
So I went on line and 15 minutes later the Navy Federal Credit Union had approved the loan at 1.49% interest and would send the check the same day. I went with a pre-approved car loan so I could shop for the best deal I could find. My son-in-laws brother just bought a new car and the local bank charges 15.5% interest and he got a great rate, it can go as high as 24% interest.
Six years ago my friend bought a car using a Philippine Bank, he paid 20% and financed it for four years, and he had to give the bank 48 pre-written checks in advance to pay off the loan. Then he found that the loan could be paid off early but for the full amount left on it, with no early payoff discount. Oh yeah, give me that great deal.
I know that with my check from the credit union I’ll have to wait for it to clear, sometimes up to 30 days. Who are they trying to kid? We will be discussing that fine point before anyone gets my money.
One last item harking back to my auto sales days, something I’m surprised the Pinoy’s haven’t figured out. It’s called stealing the traded in car, by over inflating the new car price and letting the “Customer” think they were making money off their old car. If their old car was a good one you detail it and move it to your used car lot, it was a Junker you sell them to the wholesale auction. Here in the RP you are on your own and you sell it yourself, which is not so bad an idea.
Note: I just found out that some dealers will take a trade in if your car is less than nine years old. They are learning!
Another selling trick that I have used is to have someone else sell it on commission. Say you want PNP 150,000 for your old car and they person keeps whatever above they can sell it for. My Son-in-law has done this for me and will do it again.
So this is the prelude to another story called “The Hunt for My New Wheels” Which will guide the reader into the world of car sales within our Archipelago’s known as the Republic of the Philippines. As a former Car Salesman for a Dodge Dealership in Saint Petersburg Florida, I know I’m not in Kansas anymore; this is that horse of a different color.
The Quest begins…
Paul,
I was wondering how you got Navy Federal to buy off on financing a car that they cannot repossess? Obviously they cannot hold the title of a car in a foreign country and expect to get it back if the loan goes bad. My credit union in the U.S. turned me down flat for financing a car out of their “jurisdiction” a few years back. Does Navy Federal have a policy that allows this? Could you explain this to me? Thanks in advance.
Tim in Tagum sendzzzzzzzzzzzzz
Tim;
The Navy Federal is the largest Credit Union on Earth, and now covers all branches of the US military and civilian Dept. of Defense workers. Due to the nature of its member’s jobs and where we live they have found a way to adjust to its members needs.
They are very careful who they lend money to, and the vetting process is strict. In my case I’ve been a member for 40 plus years and they hold more of my money than they lent me.
Being here in the Philippines my interest rate was adjusted to 1.74% vice the stateside 1.49%
I guess that’s why I’ve never had a need for any other bank.
If anyone has more or better information on the NFCU please comment.
Paul,
Had a feeling it was something like that kind of arrangement. If I had planned better in my earlier years I would be in a similar situation to you now or at least getting there but alas, I was too young and too stupid to consider my older years and now I am paying the price for it. Thanks for the insight and the reply.
Tim
Tim;
I owe a debt to my Rx-Wife whom I divorced in 1969 who taught me to never let another human being control your future. Once I paid off all she had ran up, I swore on all that is Holy that, that would never happen again, and it didn’t. It’s funny who you have to thank sometimes for the way you are today. But I don’t think that was her plan. (LOL)
Paul,
Never thought you would ever sell the new old Honda lol. I know Mayang is really happy to get a new car. With those interest rates I don’t think I would ever get a loan from a Philippine Bank. Flying out tommorrow back to the Philippines and warm weather and cold SMB.
Sir Duck;
She doesn’t miss the New Ole Honda a whit, I’s now Mitsubishi and Mitsubishi that,.like the Honda never was. But then I’m the same way when my beer is empty.
I know you’ and Anne will be happy to be home, give a shout when you’re coming our way.
So now you have a old New Mitsubishi. No more charging of the air con. Hope it gives you 20 years of good service and I can think of no couple anywhere that deserves a new car more than you and your lovely wife. Happy trails.
Chas;
OH do I know what you mean; I too made a pile of money during my commission days selling Detroit iron until I went back to sea. But I did have to take a really long shower when it was over!
Paul, congrats on the new, new Car.
The Auto Trade, a subject close to my heart.
If you’ve got to work for someone else, commission based is the only way in my book, lol.
Did my stint in Auto Sales for nearly a decade, and I was damned good at it 😉 afforded me to start up my own Auto Accessory business.
Happy Motoring.
Chas;
OH do I know what you mean; I too made a pile of money during my commission days selling Detroit iron until I went back to sea. But I did have to take a really long shower when it was over!
Paul;
I was glad to leave the mechanics job behind me, much more fun going to work in a nice suit and driving an all expenses paid company car.
Being up to your armpits in oil and grease everyday soon wears thin, lol.
Most of my time I worked for Vauxhall (GM) dealerships (Retail and Fleet sales) then a couple of years for a VW/Audi dealership.
Chas;
In Florida we never wore a suit, but the tie was required of which I wore the loudest ones I could find, which set a trend as I was outselling the other guys and the idiots thought it was because of my ties. I only did it for a year and took a pay cut to go back to sea as a Merchant Seaman, but oh was it worth it!
Paul – The loudest and the widest ties to go with flowered shirts and bell-bottomed polyester pants from Sears? Long sideburns and sunglasses from 7-11? White shoes? LOL Those days, I can spot a slick used-car or new car salesman from a mile away. When I walk into a dealership, I would just brush them off by not making eye contact, until I’m ready to deal. They usually get the message. The aggressive ones who followed me around the dealership don’t get my business. I know they take turns at the door, but I go to the quiet guy who’s up next. But you are right about not telling the salesman upfront that you have a trade in, until all the figures are filled in.
John;
Just the loud ties not the rest of the gear it was the 90’s after all. But the up system still worked no matter what. My trick was to hand my “UP” my card and say wander around and wave at me if you have a question. So I would have sold you a car, as that’s what you like. The other salesmen never figured it out.
When you want the best deal check the board by the sales manager’s office and request the guy that’s sold the most cars that month. He’ll deal as he’s not hungry. Another trick is to tell the guy at the end of the month that you will pay $ 400.00 over the invoice (NOT THE STICKER IN THE CARS WINDOW) the one in the office. 9 out of 10 times they will take the deal. Also NEVER buy anything after sale like a phony lifetime warrantee or undercoating that is pure profit for the dealership. Plus their back will kick back points if they arrange the loan.
John, a good salesman doesn’t need to use aggression, it’s a subtle art.
Aggressive salesman are desperate fly by nights, personally I would never entertain them.
Chas;
We called them “The Hungry Ones”
Paul;
No loud ties for me, lol. I just put in more hours than the other guys 🙂
Chas;
That will work too, plus I was the only non-convicted felon on the car lot.
Paul,
Working with ex cons, I bet that was fun, lol.
Can’t ever remember working alongside any here, but knew a few in the used car business though.
Chas;
We sold both new and used with a higher commission on the secondhand beaters. Some of those hoodlums would do dope at the back of the lot, that’s when I knew it was time to go back to sea.
1. The interest rate at dealer is way too high than the actual bank rate. When I bought my car, dealer is quoting me an interest of 20% p.a. whereas the banks published rate per their ads was only about 9% p.a. at that time. I decided then to process the loan myself and got the 9% p.a. for 4 years. Mind you, the dealer will process the loan with the same bank as I have taken the loan from. Same bank, different interest rates.
2. Why the difference? Well, it’s all about credit worthiness. If your bank will not lend you if you apply directly maybe due to you being an expat or for lack of guarantee, the dealers can do magic, but of course at a cost, thus the high interest rate. Do you really think the dealers are good guys? Think again.
Liza;
In the states if the dealer connects you to a bank for financing the bank kicks back a percentage to the dealer. It’s a scam the same as extended warrantees. This is why I used my stateside bank.
The less you have to do with any dealership the better you will be. That was some good advice you shared with us, so thank you.
Hi Paul,
Because of your decision to buy a new car I guess we(your readers) will be missing more articles, entertaining and informative, about the new old Honda. One way to sell car and get the best price for it is through Sulit or AyosDito. You would have the choice to pick the highest price offer for the items you want to sell. Good luck on your hunt for a new car. I think a sport utility vehicle (SUV) like Mitsubishi Montero Sports or Toyota Fortuner would be suited for you. Cheers.
Louie;
Selling a car is the easiest thing to do here in the Philippine using the non digital AyosDito or Sulit. You just let it slip that your car is for sale and then discover that every citizen is a car agent. We’ve had no less than twenty five people inquiring about the New Ole Honda. Oh and I like easy to park sedans’ with a trunk and four doors.
It looks like the continuing saga of the New Old Honda is rapidly coming to a close. The ” Accessories you want ” in the new car ? I think most of the things that were once options are now included with new cars as standard equipment such as power windows, power door locks, CD Radio Stereo, Air Con, power steering, etc. Do the cars there come equipped with a Heater and Defroster for those cooler days and nights during the rain season ? Now that may be an accessory worth inquiring about LOL.
I try to purchase a new car about every ten years. Unfortunately my 1999 Ford Escort only lasted for 7 years when at 177,000 miles the engine blew due to a faulty head gasket. I replaced it with a then new Ford Focus. Both of those cars were just under 20K USD right off a local dealers lot. I had saved the money well ahead of time so when the dealer asked what kind of terms I wanted I just commented ” Oh, I’ll pay cash, I’ll call my bank and have them transfer the money “. Now I am saving for the next new car so when the time comes hopefully I can do the same thing. I figure I saved at least $1500 by not paying interest on a car loan. That is enough for another round trip ticket from New York to The Philippines.
Good luck to you Paul on your selection and purchase of a new car. I will miss the New Old Honda articles but I am sure the replacement for it will generate some great reading in the future.
Bob (NY);
I dearly hope I can write nothing of the new car other than Mayang washed it today. My loan came in at 1.74% for 4 years but I plan to be out from under it with
In 2-3 years. But the nut is only $212.00 per month.
I did pass on the GPS in the new car, I’m pretty sure I know where I am, and the Keyless Entry system as Mayang pointed out; “Mahal how do you drive if the sensor has a dead battery? But everything else is on the car.
The Ford dealer her wanted PNP 200,000.00 for the same class of car. I said no thanks, but thank you Bob for your well wish’s to me!
Bob, how are you feeling?
Not good, unfortunately.
Hey Buddy;
Bob: What’s wrong? Please stay well and get better!
Hope you feel better soon, Bob. Take care.
Prayers go out for you Bob… take care of yourself. God bless.
Great post! Can’t wait till the next episode to this post pops out. Thanks Mr. Thompson
Alex;
Mr. Thompson was my Dad, I’m Paul (lol) but thank you for your kind words and I hope I don’t disappoint.
Man! I kept reading and wondering. I thought I missed something. What happened to the new old Honda? Then I realized that in the tradition of an old war story, if you want to hear the rest, someone has to buy another round.
Take care,
Pete
Pete;
The saga of the New Old Honda is coming soon to a LiP near you, But to all those people clamoring to buy it, I’ll simply say it is just tail lights into the mist now. NEVER sell a car to someone you know or you’ll own it for the rest of your life!
Ha ha, Aint that truth!
Hi Paul,
“Neither a borrower or lender be.” but if you must borrow get a great rate and you seem to have that covered. I have always bought used cars, paid cash for them and drove them until they were not worth much. I bought an used 1999 Plymouth Breeze once and frankly it was not worth much when I bought it I think the previous owner did not take good care of it. My mistake.
You gave some good advice about trading a vehicle in. I have done it in the past because of sheer laziness, but you generally get ripped off.
Thanks for your comment on my last post about Southerners. It was nice. Mighty decent especially coming from a … Bostonian. I almost wrote the Y word.
Here is a quick joke it might even be original.
If a man says he has a nervous tick and you think he has a paraniod parasite attached to some part of his body…you might be a redneck.
Take care,
Jay
Jay;
The only major disagreement I had with a Southerner is about how corn bread should taste, and I know I’m right.
My first new car was a 1978 Lincoln Town Car; I’d drive by the dealership and see that pretty Cream colored beast in the window and one day after a few beers on Brevard Ave. in Coco Beach Fla. I stopped and bought it, thinking it was not exactly the car a single 31 year old Chief in the Navy would drive.
But you do catch hell when you drive a better car then the Admiral. But from then until now I paid cash for “Previously Owned” cars and did well.
Well there was this one car…..
As for being a Yankee, remember it’s only a bad word when it’s used in talking about something from New York City similar to TICKS.
Paul…. Congrats on the new ride:) On our next trip, will a bottle of the Captain cover fare from Sittin’ Bulls back to Subic Park?? We will even cover the fish&chips:):)
Billy’
That’s a given, I’ll even let you drive (To there not back) Tommy will be home in March.
Before today, I would not have considered attempting to drive your national highway…. But I just got back from navigating downtown Jacksonville for the first time in 30 years, so I am game for anything!! It was just like Tampa, still have not completed the interstate lane expansion they started in the 80’s:) Had to go there for Flor’s first biometric appointment with Homeland Security for her AOS… So the games have begun:):)
Glad to hear Tommy will be back soon to help you keep the local establishments open and thriving:):) I salute you for going it alone in the absence of Tommy and Loren:):) Wish I could come give yall a hand…. Tell him and his wife , Flor and I send our best..
Fixin’ to assault a newly aquired 12 pack to deesclate and wash the taste of Jacksonville out of my mouth… I will send many toasts across the pond to you and Mayang tonight wishing yall many memories and joyous years with the new mitsubishi…. Take care and keep a stool warm for me!!
Billy;
Like you I don’t like to drive in any city, Manila topping the list, but out here in the boonies it’s not so bad. Wow Flor, is on the way to becoming an American, it would be so much quicker if you drive to Mexico and sneak back, then Obama will give you money and the citizenship papers all for free. No do it the proper way!!!
It’s been tough on my own, but Carlos Schofield (You’ve not met him yet) was in from Oregon and we tried our best to git er done.
Enjoy those beers, I’ll have one too, and yell YO BILLY!!!.