Kia Sedan for sale

Buying a Car in the Philippines: Cash vs. Installment

Greetings! Welcome to Philkotse.com. You are now on our listing page for Kia Sedan for sale in the Philippines with low downpayment and monthly installment.

If you are interested in other car models sold by other auto manufacturers, you can also take a look at our new and used car for sale section which has a massive list of vehicles in all body types, transmission types and many other classifications which you can choose to view using our advanced, easy-to-use search engine.

In purchasing a vehicle, especially if it's new, there are always two options you can choose, either by installment or by cash. Each choice comes with their own sets of advantages and disadvantages and we are glad to help you get an understanding of those differences.

I. Reasons to pay for a car in cash

1. Avoiding interest rates

You might be thinking that paying in monthly amortizations is advantageous for you because these are subdivided in small chunks that will eat less out of your monthly salary.

The catch, however, for those of you who do not know, is that if you actually sum up those monthly payments, the total price is quite higher than that if you paid for the car in cash. This is due to an interest rate which in many cases can drive up to real, total price of a vehicle to up to 30%.

For your convenience, in our Kia Philippine price list, there is a rough estimate of the pricing of a car if paid with a monthly interest of 5.22 % and 10.71%. You can also see from the price list the total amount you might pay in monthly amortizations resulting from those interest rates.

2. Car depreciation

All kinds of vehicles depreciate over time. As soon as you leave the dealership, your Kia car will have depreciated about 10% with another 10% yearly. So with your continuing monthly payments which ignore that depreciation rate, it can be said that you are paying more for the actual market value of a vehicle.

If you purchased a car with cash, you will, of course, have avoided this conundrum.

3. Discounts

Most dealerships here in the country for Kia Philippines usually have discounts, large ones at that if you pay in cash, discounts that you will simply miss if you pay in installments.

For more information about active discounts on car models available right now, you might want to go to nearby Kia Philippines dealerships.

II. Reasons to pay in installments

1. Not enough savings

Let's face it, only a few people will have a large pool of savings that's enough to pay for a car in cash. As such, it would be a better economic choice to get a car loan from a dealership or from the bank.

Life also will get in the way even if you have savings in the first place as we are certain that there are other things people will always spend on like education, housing, monthly supplies, etc.

2. A certain model's interest rate is low and you really need the vehicle

It is indeed true that some particular car model's interest rate and even the monthly amortization will amount to a very affordable sum.

And let's face it, there are some of you out there who cannot pay in cash but you really need a car or any kind of vehicle in your day to day activities. Also, if you have a business that really needs a vehicle, that vehicle will almost always pay for itself.

Thank you for choosing Philkotse.com and we wish you good fortune in your hunt for your next vehicle.