At the press briefing for the 2nd Philippine International Motor Show held last Tuesday, automotive manufacturers promised to tell car buyers what they really need to know to “get all that jazz with less gas” and what they need to do to squeeze more mileage for every liter of gas or diesel.
Homer Maranan, executive director of The Chamber of Automotive Manufacturers of the Philippines (CAMPI) shared the following tips:
- Buy smaller engine vehicles if your family is small
- Go for diesel-powered cars. He says it is a misnomer to say that diesel is dirtier than gas (although some “insiders” swear by that.)
- Avoid stop-and-go driving and sudden acceleration as much as possible as this uses more gas
- Paying for proper and regular maintenance is more frugal in the long-term
Watch my video interview with Maranan with reporter Izah Morales.
Elizabeth Lee, president of CAMPI, gave these tips:
- Plan your errands
- Pick the right size of car for your family
- The more gears, the more fuel-efficiency in a car
Watch my video interview with Ms. Lee with reporter Izah Morales.
With this in mind, let me pose a question to you. What if you were offered an almost two-year old, diesel-powered Toyota Fortuner with 5,000 kilometer mileage for P1.4 million, but to be paid on installment at P20,000 a month, with two years grace?
That means you can drive home the macho wheels right this very minute, paying nothing to the owner and with only your face as collateral. You start paying at the end of the second year of happy driving and then go on paying every month until you pay the entire amount.
Let me throw in a couple of details to make this really interesting. Your family is growing. Let’s say you have four kids and enjoy the occasional out-of-town trips. Right now, you have a small Honda car. Gas prices are rising weekly and you live in the city.
This puzzle had several people stumped. With such payment terms, the deal can be too tempting. Yet as you all say here in MoneySmarts, anything that you don’t need, at whatever price is expensive. Right paetechie?
Will you take it?
July 24th, 2008 at 2:56 pm
That is a generous offer, IMO.
However, Fortuner is not good for city driving and most of them end up in the garage for display nowadays due to high cost of fuel.
So what is the point in getting it if I can only use the SUV during occasional out of town trips as opposed to my need of using a vehicle daily?
This is a classic case of bad investment.
No wonder it is for sale. The owner must have realized it too.
July 24th, 2008 at 1:57 pm
qoute:
If I am lucky enough I will be able to pay the 1.4M cash at the end of two years. If I can still use the money to earn more, I will just pay 20,000 monthly without interest.
we’ll, a nice strategy you have here, but the big question is, will there be any taker of that gas guzzler?? I ‘aint taking other peoples worries on my back as well.
July 24th, 2008 at 12:47 pm
This is what I will do:
1. Get the Fortuner.
2. Sell it at fair market price
3. Use the proceeds to invest in a business or financial instrument that will yield high returns.
If I am lucky enough I will be able to pay the 1.4M cash at the end of two years. If I can still use the money to earn more, I will just pay 20,000 monthly without interest.
This is a great deal!
July 24th, 2008 at 12:33 pm
Considering that life nowadays are not getting easier especially here in the Philippines, i don’t think it’s wise to take it. I’d rather fund the moolah for the children’s education instead.
July 24th, 2008 at 10:26 am
Yes, I will probably take it. With no downpayment required and a 2 year grace period to start the 20k MRR, it’s a good deal. Maybe by the time you start paying the MRR, you already alloted a budget for it.