Updated: September 22, 2023
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This episode is supported by #BDOAutoLoan. Visit bdo.com.ph to learn more.
What you’ll hear in this episode:
Are you planning to buy a car but don’t know if you can afford it?
In this episode, I shared practical tips and strategies on buying your dream car.
The 20/5/30 Rule:
- You can make a minimum downpayment of at least 20 percent on the car loan.
- You can you afford the monthly payments of a 5-year term for the car loan.
- 30-40 percent of your monthly income can cover the cost of owning the car.
The 20/40 Rule.
- You can make a minimum downpayment of at least 20 percent on the car loan.
- You are able to save 40 percent of your income every month.
Quick tips on choosing what car to buy:
- You love the brand and the model.
- The car will effectively serve the purpose that you intend to use it for.
- It has a reputation for durability.
- It has good fuel efficiency.
- Replacement parts are easy to find in case you need repairs.
- It potentially has good resale value.
- To ensure that the car you want fits your budget, you can check out the BDO Auto Loan Calculator to compute and compare the interest rate, loan terms, and monthly amortization that works for you.
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