aaron2

It Has Served Me Well

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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?”

Tagalog Buddy

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 Thompson

Paul Thompson; has resided in the Philippines since 1993, living close to Subic Bay. I’m married to a wonderful girl named Maria (AKA Mayang).Who is from Gordon Heights in Olongapo where she grew up with her Mom & Dad and seven siblings Our two daughters are both grown up and have left the nest, the eldest married to a wonderful guy named Chris, and they have blessed us with our granddaughter Heather Colleen Our youngest daughter and her husband Cecil have blessed us with a grandson named. Jayden Logan. I’m a retired U.S. NAVY Senior Chief after 22 years of active duty. After retirement from the Navy I lived for 7 years in Puerto Rico as a Night Club owner. Then Hurricane Hugo told me to find a new line of work, I was hired by Military Sealift Command and went back to sea in Asia as a Merchant Seaman for 10 years. After 30 plus years at sea I buried my anchor on a mountain in the Philippines and am now residing in Dinalupihan (or DinBat for short), Roosevelt, Bataan where we built our home. And last but not least, anything I writes will be pure "Tongue in Cheek "If anybody is offended, I'll lose no sleep over it, but here's a quick Mea Culpa in advance!

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Tim Miller
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Tim Miller

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

PapaDuck
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PapaDuck

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.

bigp
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bigp

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.

chasrand
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chasrand

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.

Liza
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Liza

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… Read more »

louie
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louie

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.

Bob New York
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Bob New York

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… Read more »

Elsie Sarmiento
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Bob, how are you feeling?

Bob Martin
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Not good, unfortunately.

Elsie Sarmiento
Guest

Hope you feel better soon, Bob. Take care.

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