F***ing Stupid Bank Policy

[Dave Hounddriver]

I have forgot what interest was at a loan through the car dealer,

 

The Mitsubishi car that Yvonne looked at today was 540,000 list price, less some discount and add some costs = 71,144 Cash Outlay and 459,000 To Finance over 60 months at 11,245 per month.

 

Plug those numbers into an amortization calculator and you get 16.3397% APR which is similar to what my Canadian credit card charges me so the rate is not exorbitant, just high.

[chris49]

Dave my former partner absconded with my car in a well planned operation. 

 

Short version: we were together 3 years, 4 years total but the 4th year was not good. I bought the car 750k about a year before we met but foolishly had it in someone else's name. That someone was nice enough to give me over the ownership by issuing me a new Deed of Sale, but I did not do the title transfer. New partner was so sweet to ask me to have her name on the Deed of Sale (dumb mistake but that was when I was still new here)  I used the car  all 4 years. When we split up or when it was inevitable we would split up, she quietly through a 3rd party got the title transferred to her own name. One night she managed to get both sets of keys in her possession and the rest is history.

 

The vehicle did drop in value to around 500k. But that's the sad story, I could do nothing.

 

With Gina, now together 4 years, of course initially we were not secure in the relationship as we are now, you can probably understand why I didn't rush out to get a new one.

 

I am currently in the market but all things considered I might go cash again this time, with the vehicle in my name. I think Dave, others, you can't get it in your own name if financed, is that correct?

[Dave Hounddriver]

I think Dave, others, you can't get it in your own name if financed, is that correct?

 

My bank manager at PS Bank is telling me he has no problem putting it in my name IF it is approved at all.

[chris49]

Ah well.  She really wants a car and it shows.  But you know who's gotta pay for it....Dave.

 

I think an inherent problem when dealing with a Filipina and any kind of credit especially auto credit like Credit Cards, is that they have a very poor concept of the whole idea of repayments and how will you manage those payments over time.

 

Gina's a pure provincia, so I did not introduce her to such things. She does have her motor bike on dealer financing, but it was my decision, my gift to her, 3200/month is manageable, but if I ever analyze what the real interest rate is, it would be scary.

 

I did intro my previous partner to credit cards to my great regret. I did try to explain it to her in great detail but she did not get it at all, she would tell me.."That's why it's called a credit card, so you can get credit". good explanation but no help at all when it came to repayment.

[chris49]

 

I think Dave, others, you can't get it in your own name if financed, is that correct?

 

My bank manager at PS Bank is telling me he has no problem putting it in my name IF it is approved at all.

 

 

Clever wording because the actual title will not be released until the loan is paid. I think you will be the one to do the title transfer, I bet they hold the tittle and Deed of Sale, until the loan is paid.

[Dave Hounddriver]

I bet they hold the tittle and Deed of Sale, until the loan is paid.

 

I was also told, by the bank manager and various car dealers, that they take a chattel mortgage and register this at the Registry of Deeds.  This costs the purchaser about 5% of the vehicle cost.  Add in the cost of mandatory insurance and there is a total of 10% extra to pay when financing a vehicle here.  So 20% down instantly becomes 30% down.

 

In addition, its up to you to get the chattel mortgage released from the registry of deeds at any future time when the loan is paid and you want to sell it.  Internet storys such as this one:  http://www.autoindustriya.com/talkboard/car-talk-board/5/registry-of-deeds-trenta/31289/msg402658#msg402658 suggest that this is another ordeal costing time and money.  Not fun, but we both want a car before the rainy season gets into full swing.  I drove around on a motorcycle all last year and got soaked.

[Thomas]

 

 

I think Dave, others, you can't get it in your own name if financed, is that correct?

 

My bank manager at PS Bank is telling me he has no problem putting it in my name IF it is approved at all.

 

 

Clever wording because the actual title will not be released until the loan is paid. I think you will be the one to do the title transfer, I bet they hold the tittle and Deed of Sale, until the loan is paid.

There are different solutions. I know of these in Phils:

1. As you write.

2. The car is in buyer's name, but it's noted as collateral.  Lenders can HOLD the owner document.

[Jake]

 

We always hear, and I agree 100% with it. That we should always present a courteous, calm and under bearing body language when dealing with Filipinos. But there are times that a guy just has to draw the line, stand firm, grab them by the nose (figuratively) and demand that the right thing be done.. :cheersty:  

As in most relationships with a Filipina, one cannot resist those brown eyes smiling at you whenever they want something special (expensive).  I would fall for it almost every time.  In this case, I also wanted a vehicle after being tormented by public transportation (Metro Manila) for a few years. So I can understand Dave's motivation and frustration of going through the barriers of getting a car loan.  As for me, rather than a new car, I decided to get one built  - an extended Jeep Wrangler, assembled in Pasig.  We were fortunate to have Judy's sister (with excellent credit) take the loan for us.  We just paid her back using my US check.  Actually, I just gave her a stack of checks, predated for 24 months.  

 

As far as teaching a new western culture or practices like the word BUDGET, I think Judy is up to the letter D.....he, he.  And speaking of culture, I believe this is where common courtesy, sensitivity and honesty are severely lacking in the Filipino mindset, even with BS degree.  

I also believe that pleasing or retaining a banking relationship with a Kano is of utmost importance.  The female bank manager was saying yes but really did not have the heart to decline the loan face to face, in addition of being incompetent.  

 

Controlling yourself under those conditions takes a lot of practice.  I've been guilty of going into NCO mode as well.  In the case of Scott, he's already locked and loaded as a senior staff non commission officer -- a seasoned bull dog that walks softly but carries a nasty M-4. Your tolerance/patience levels may vary according to your mood at the moment.  We all have those moments, including within the public eye, followed by hot tsismis (gossiping) when you finally pull that trigger of rage. I can offer no viable suggestions.....perhaps another cold San Magoo to calm your nerves?

 

Only in da Philippines -- Jake, drinking a cold one

 

Edited to remove inflammatory remarks against a certain bank manager

Edited June 29, 2015 by Jake

[earthdome]

It sounds like you are going to get soaked either way Dave. By riding your motorcycle one more rainy season while you save up the money to pay cash OR soaked by all the extra fee's and high interest rate of a car loan.

 

For me I would prefer saving up for the car and pay cash. 

[Dave Hounddriver]

For me I would prefer saving up for the car and pay cash.

 

Aha, but you forget the thread where my motorcycle was stolen, so its a question of walking, using my down-payment to buy a motorcycle, or using my down-payment on a car.  Life is filled with choices  :thumbsup:

 

Edit:  In the meantime I am getting in lots of frequent jeepney miles  :hystery:

Edited June 29, 2015 by Dave Hounddriver