Chris Dominguez
Not to be cliche but, hey! It’s that time of the year again! How are you doing? Are the Santa socks hanging on the walls already? How about the Christmas Tree with empty gift-wrapped boxes underneath it and those colorful Christmas lights that make the bills go not-so-merry? Well it’s not really worth asking really as you may have already set them all up since September.
But you know what, beyond the usual decorations, I think we are not alone if we say that nothing can give you more of that Holiday feels aside from travelling. The bright lights on the streets, the cold weather, the constant blaring of Marriah’s All I want for Christmas Is You. Everything is just so perfect for chilling out with family and friends. Oh but of course you’d ask; how about the pandemic? I want the feels but I don’t want the ills. No worries. This is why road trips are just the perfect bonding you can do for the season. You get to check out the country’s beautiful vistas without having to risk bumping with strangers because you’re safe within the confines of your car.
But what’s that? You don’t have a car? Well, this is a bit awkward. It makes things more complicated and less jolly than what the season should make you experience. Don’t you worry that much though. It isn’t hopeless. If you haven’t given yourself a gift for surviving this year then perhaps it’s time to get yourself one. One that is both a luxury and a very functional tool at the same time. Yes, be your own Santa and reward yourself with a brand new car.
Is this a good time tho?
In a recent report from Chamber of Automotive Manufacturers of the Philippines Inc. (CAMPI) and Truck Manufacturers Association (TMA), it appears that car retail during this pandemic-afflicted year experienced a 45% drop when compared to last year’s sales. That’s to be expected but from the same report, starting from the “Ber” months of 2020, the car sales trended back up again, increasing by about 30%. Filipinos just can’t resist being jovial whenever the beloved time of the year is nearing, eh?
This increase in sales during the holidays season is not unique to this year. In the Philippines, during the month of December last 2018, car sales edged by 2.2% higher than previous months. In the US, according to their Bureau of Economic Analysis, while for many years December has been a bad season for car retail, during the recent years it has become one of, (if not the) best month for it. Their total retail sales run about 80% higher than normal in December.
So if you’re actually aiming to buy a car this year, you could not have chosen a much better time. Numbers are good during this time and that is advantageous for both the dealers and the buyers.
But why, though?
You may have already read this explanation from a dozen other articles but it doesn’t make it any less true.
People working in the sales industry are entitled to about a week (or even two) of vacation during the month of December… but ONLY if they meet their sales quota. If they don’t, they can expect to only start their siesta on or before the 24th. Now, as you may know car prices are almost always negotiable. The price they put on display? They’re just there for those who have no time or those who are not disagreeable enough to bargain.
Now with the year ending and the deadline nearing, you can imagine just how much unit they would like to get rid off as fast as they can. If they can meet their quota by dropping the price to the lowest possible, not only will they be easier to convince to do so, they will be the one to initiate doing so.
I don’t have the money so how, though?
Man, it’s the Holidays Season. You HAVE the money but if the question is if it’s enough to get a car right this instant and still keep up with the expenses for the holiday… well, trust us. IT IS. Car financing has always been here and it is potentially a gift that will keep on giving all year round. You only have to make sure that you choose a good provider.
You know you have chosen the right provider if:
- The downpayment is 30% or below – Chances are, you would be faced with banks that will offer you car financing with down payments of about 40% to 50%. True, banks offer relatively lower interest rates but are you sure you want to fork out that much cash right now? You have to take that into consideration
- The interest rates are malleable – There are some providers that will offer you malleable interest rates depending upon whether you will directly avail the car directly from the loan provider or from a dealership of your choosing. Take Global Dominion Financing Inc. (GDFI) for instance. Should you choose to avail a car from an unconnected dealership, their already low interest rate of 1.3% can still get even lower.
But why is that? Shouldn’t it be the other way around?
You see, when a loan provider is in partnership with a dealership, the dealer takes advantage of the partnership and makes sure they get a substantial cut from your loan payments. This is acceptable for clients who would not mind higher interest rates in exchange for sparing themselves the hassle of talking with dealers themselves. But for most of us? We would like to strike a good balance between thriftiness and convenience – and malleable interest is just what makes that possible.
- The payment term can reach up to 36 months – High Amortization is never a good thing, that is unless you have lots of cash to spare. If that isn’t the case, you have to make sure that the payment term can at least go up to 36 months. This makes the amortization bearable without the loan feeling like a drag or stretched more than necessary. For example, if your unit’s price is 500k and you made a down payment of 30%, your monthly amortization for the principal loan amount will then be 9700+. Not bad, huh?
- Processing takes only about a week or so after completion of requirements – Emphasis on “completion of requirements”. After all, your provider won’t be able to start doing any processing if your documents are incomplete. But after that, they should be able to take care of everything swiftly. Remember that we are still aiming for that road trip during the holidays. A good provider will be able to make that possible considering that, like dealerships, the year-end for them means crunch time as well.
That’s it!
With these, your worry-free and guilt-free road trip is already a good experience waiting to happen. Why would you postpone it for the next year when you can already have right here, right now!
The year has been a long tedious journey. End it with a short one with friends, but this time, you get to sit back, relax, and choose where the journey is going to lead you.