Somewhat funny approaching at car vs. public transport

[GeoffH]

4 hours ago, Tukaram (Tim) said:

If I lived out in the province I would probably buy a trike.  I am close enough to the city that public transport is fine with me.  Cars are crazy expensive here.

 

I don't fit into trikes very well (too big) and for me at least there were no close public transport options near to the lot.

I suspect that 'cars being crazy expensive' is a perception related to what the price of cars actually is in one's home country.  Most of the Toyotas we priced were about 20% more expensive than they are in Australia but they're about line ball with New Zealand prices. 

So I included a car in the budget but YMMV of course.

 

 

[OnMyWay]

3 hours ago, Tukaram (Tim) said:

Cars are crazy expensive here.

I used to think that but it is not so true anymore on lower end models.  Also, insurance and maintenance are lower cost here.  The strength of the dollar has caused the local new cars to be more competitive with U.S. pricing.

For instance, the suggested retail of a U.S. Honda Fit, top of the line with Navi, is about USD 21,520, or about p1,101,322.  The top of line with Navi Jazz (same car) in the Philippines has a SRP of p1,029,000.  Usually in the U.S. you pay less than SRP.  In the Philippines, less discount from SRP for new models.

So, those two similar vehicles are about the same price in the U.S. and Philippines.

The proposed new tax on vehicles in the Philippines will bump up the cost, but not too much on lower end cars.

[Dr. Shiva]

In the province a car is very convenient to get around. Even the parking issues are lower than in the middle sized and in bigger cities. When you have to change from your to public transport just to be able to reach your destination inside of a city is something not so well with the city layout planning. Ormoc City as an example plans now a public car park as a replacement at the location of the burnt down Gaisano Capital. Public car parks are quite often missing in the cities or only available at malls. 

My small size is very compatible with Philippine public transportation. And I have no issue using public transportation there. But I prefer jeepneys above tricycles. 

Is the SRP including the VAT or not. Adding 12% to the SRP makes the cars more expenisve if it is being added to the SRP.

Edited November 14, 2017 by Dr. Shiva

[davewe]

13 hours ago, OnMyWay said:

I used to think that but it is not so true anymore on lower end models.  Also, insurance and maintenance are lower cost here.  The strength of the dollar has caused the local new cars to be more competitive with U.S. pricing.

For instance, the suggested retail of a U.S. Honda Fit, top of the line with Navi, is about USD 21,520, or about p1,101,322.  The top of line with Navi Jazz (same car) in the Philippines has a SRP of p1,029,000.  Usually in the U.S. you pay less than SRP.  In the Philippines, less discount from SRP for new models.

So, those two similar vehicles are about the same price in the U.S. and Philippines.

The proposed new tax on vehicles in the Philippines will bump up the cost, but not too much on lower end cars.

I was reasonably happy with the new car prices, thinking that they might be much more. As you said the strength of the dollar is one factor. Another factor is what we in my former industry call the skew or version of the car.

For example I bought an EcoSport. The Asian version is 1.5 liters. The European (and soon American) version is 1.0 liter turbo or 2.0 liter standard engine. In the US to go 80mph on the highway you're going to need a 2.0. Since 80mph does not exist in the Philippines my 1.5 is plenty; and that, plus other things that are "missing" (cruise control for example) makes the car a bit more affordable. OTOH if you need a big engine and all the bells and whistles, you're going to be buying an expensive car.

[Dave Hounddriver]

1 minute ago, davewe said:

if you need a big engine

Thats what the topic is about:  What do you really need with regards to transportation.

I get annoyed with the local women who have rich husbands and insist on a huge Montero or other SUV just so they can cruise around downtown, take their friends for coffee and buy some groceries.  They do not need that big.  Many in this thread are talking about buying new cars and I think we do not need that.  There are used cars out there that cost as little as some motorcycles.  I have  owned 2 used cars since I got to Philippines and have been happy with both. The first cost me 300K pesos and the second about half of that.  Of course you only get what you pay for but I am only paying for what I need, rather than the luxury of new.  This is not to say there is anything wrong with buying a new car, but when people say they need to buy new they are just trying to convince themselves, IMHO.

[Jack Peterson]

7 minutes ago, davewe said:

I was reasonably happy with the new car prices,

Me too dave but we should remember that the run of the Mill car here is built for the Asian market, Mine for Example (Suzuki Ciaz) is only available in India, Thailand and the Philippines. You can't buy one in Japan, They are of course made in japan but assembled in India, or Thailand and thus are cost effective to the intended Market.

[davewe]

Just now, Dave Hounddriver said:

Thats what the topic is about:  What do you really need with regards to transportation.

I get annoyed with the local women who have rich husbands and insist on a huge Montero or other SUV just so they can cruise around downtown, take their friends for coffee and buy some groceries.  They do not need that big.  Many in this thread are talking about buying new cars and I think we do not need that.  There are used cars out there that cost as little as some motorcycles.  I have  owned 2 used cars since I got to Philippines and have been happy with both. The first cost me 300K pesos and the second about half of that.  Of course you only get what you pay for but I am only paying for what I need, rather than the luxury of new.  This is not to say there is anything wrong with buying a new car, but when people say they need to buy new they are just trying to convince themselves, IMHO.

Well, there's "need" and there's "need," as I'm sure you know. 

[davewe]

Just now, Jack Peterson said:

Me too dave but we should remember that the run of the Mill car here is built for the Asian market, Mine for Example (Suzuki Ciaz) is only available in India, Thailand and the Philippines. You can't buy one in Japan, They are of course made in japan but assembled in India, or Thailand and thus are cost effective to the intended Market.

I guess that was my point but I maybe confused everyone with the high tech word "skew". Yes the skews we get are in many cases not the same as in the West, and that lowers the cost.

[Jack Peterson]

5 minutes ago, davewe said:

Well, there's "need" and there's "need," as I'm sure you know. 

In this house we have a saying, do we NEED it or Just WANT it? if it is them (My ladies) it is Need always,  if it is me, I have to justify the Need from the  Want   You think I am Kidding? 

[GeoffH]

On 11/15/2017 at 12:40 PM, Dave Hounddriver said:

This is not to say there is anything wrong with buying a new car, but when people say they need to buy new they are just trying to convince themselves, IMHO.

 

I bought a new E (mid range) Toyota Avanza 7 seat compact MPV with automatic, a model that is only really sold in countries with 'emerging economies' to carry the family around in, previously the family were using an older Isuzu dual cab truck (or ute as we'd say in Australia) and  people used to sit in the payload area which always made me uncomfortable (although it bothers nobody here). Now everyone is inside, even if the car only has front air bags and not curtain airbags like ones sold in most western countries.   It is without a doubt safer than the previous transport although rather basic compared to what's sold in Australia and similar 1st world countries.

I did look around for a 2nd hand MPV (an earlier Avanza or similar up to say 5 years old) but I couldn't find anything in good condition in northern Mindanao at the time although SWMBO was rather worried about how much I was spending.

Edited November 16, 2017 by GeoffH