Brand New or Used Car?

Nothing beats that fresh smell of a brand new car as you take it around town for the first time. But is it really better compared to a used car? Well just like any matter, it has it's pros and cons. You can read below what are the advantages and disadvantages between one and the other.

Brand New

Advantage:

Warranty - depending on the brand it is standard to have a 2-3 year warranty on your brand new automobile.

Peace of mind - having warranty and support you have the peace of mind knowing your unit is from the dealership and covered from any possible defects or problems in the near future.

Financing - whether 1, 2 or all the way to 5 years is your payment options to pay for your new car.

Trade-in - some dealerships such as Gateway Motors have made a name for themselves by accepting trade-in units at a high appraisal and you only have to shell out a little bit more for a brand new unit.

Disadvantage:

Premium Price - Great things come at a price. A downside to dealing with the dealership is that you can't negotiate and you have to pay a premium price based on the SRP (Suggested Retail Price) not to mention certain add-ons such as commision for the sales agent and miscellaneous expenses.

Depreciation - unfortunately as you take home your new car, it instantly loses about 30% of it's value from the get-go.

Used Car

Advantage:

Avoid Depreciation - since a brand new car loses about 30% as it rolls out of the dealership, that is no problem when dealing with a used vehicle. You get value for your money as you can take your pick at a car you need and want within your budget range.

Smaller premium on Insurance - having an older model car is not that bad, especially when it comes to insurance. The older the car, the lesser it's value may be but so is your premium for you insurance coverage.

Take note: Some insurance companies don't accept car models that are older than 10 years.

You can haggle - when acquiring a used car, you can always negotiate. Take a closer look and you can spot some flaws here and there that you can use as leverage to get that extra discount.

Disadvantage:

Spot Cash - unlike in the dealership where you can get a loan, most of the time when dealing with used cars you've got to pay for the unit upfront. And purchasing a used car may be cheaper than the retail price, but paying for the value of the entire unit at once is still not good for your pocket.

Acquired problems & issues - a drawback to a used car is that you never know what problems and issues the unit you're purchasing has. Sometimes the symptoms of the problem does not arise till it's too late when you've already struck a deal and your driving away with the car.

Lack of Spare Parts - varying on the model of the unit, it may be difficult to find parts for that older model car. If you're lucky you can find one at a surplus shop but if not you may have to order it abroad which would take some time and effort on locating.

Over-all a car is a car and is an absolute necessity now a days. You can never go wrong with any purchase as long as you've done your homework and figured out your need. The most important part is that you take good care and maintenance to your vehicle and it will last you many many years of service.

Drive safely!!

MECHANIC'S CORNER: Hyundai Getz Rattling Noise

Hyundai Getz gets inspected

This week a Hyundai Getz comes in the shop and the lady is complaining about smoke coming from beneath the car as well as rattling noise when driving the vehicle. When we placed the unit on the lifter and inspected it, we found that the rust on the muffler has done it's work and has cut through it.

Damaged muffler caused by the rust

Seeing the damage, the remedy is simple. It's just a matter of welding the muffler back to it's original position and problem solved!

How to Buy a Used Car

Here are some tips to look out for prior to making that commitment and spending your hard-earned cash on a used vehicle.

1) Initial Inspection

Look underneath the car for rust. A used car with a rusted frame isn't structurally sound. While a rusted frame can be salvaged, it can be expensive and time consuming.

Check the tires and wheels. Look for even tire wear. Uneven wear in the front could mean the wheels or suspension are out of alignment.

Inspect the exterior. Look for recent paint jobs as this may indicate body damage. You can sometimes detect paint jobs by finding over-spray on the rubber window molding. Tap along repainted areas and listen for a change in tone that reveals patchwork.

Check the interior. You don’t want a used car that’s been torn to shreds on the inside. When inspecting the interior, check the odometer. If the car says it has low miles, but the wear and tear on the inside looks like it’s been to hell and back, something might be up.

Look under the hood. If you see rounded or stripped nuts and bolt heads, it could be an indication of shoddy repair work. While you’re under there, check the spark plugs to see if they’re newer than the rest of the engine. If they are, that’s a sign the car has undergone regular maintenance and tune-up. That’s a good thing.

2) Test Drive

Drive it cold. A cold engine will tell you a lot more then a warm one will.

Turn the key. Does the car start easily? Does the engine make any funny noises while turning? Do you have to turn the key a lot to get the car started?

Check controls. Test the wiper, lights, radio, and air conditioner controllers. There shouldn’t be any noticeable drop in engine performance when you turn on the A/C.

Check the transmission. If the car is an automatic transmission, it shouldn’t make any loud clunking noises or hesitate when you switch gears. A manual transmission should shift smoothly. If you hear any grinding noise when shifting it could mean the synchronizers are bad. Also, check the clutch of a manual transmission by going slowly uphill in a higher than normal gear, like 3rd or 4th gear. If the clutch is good, the RPM will decrease and nearly stall. If the clutch is bad, the engine will rev but won’t go anywhere.

Check the brakes. Find a road without any traffic and accelerate to about 60 kmph. Hit the brakes hard. If the car pulls to the right or left, it may mean you have a loose brake caliper or there’s not enough hydraulic fluid on the side it’s pulling to. Also, if you feel a shuddering when you brake, it could mean the brakes are warped. The brake pedal should also feel firm when you press down on it. If the brake sinks all the way to the floor, you may need to replace the master cylinder.

Check the alignment. While driving, take your hands off the steering wheel for a moment and see if the car pulls in one direction. If it does, you might have some front-end alignment problems.

Take the car over a bumpy road. Check out how the car responds to the bumps. If you feel the bumps a lot, the shocks are probably worn.

Listen. If you hear rattles, groans, and clunks, that’s a problem. Sure, the ailment might be repairable, but why waste your time or money?

Finally, when in doubt, it is always best to have the vehicle inspected by a professional. It may entail shelling a little bit for the mechanic to check it out but at least you are guaranteed that the car you are about to purchase is in tip top shape.

3) Do your Research

Compare prices online. There are a lot of local resources on the internet that you can use as basis for prices on used cars. Just google the specific year and model of the unit you intend to acquire and you can look at current Philippine prices.

Note: Manila prices are cheaper by P10-25k compared to Cebu prices, just for your consideration when doing your research.

Read Reviews. You can read car reviews about a specific model and hear what other people have to say about a specific unit. You might stumble upon something about a certain car that you may or may not like.

Personal Tip: Apply due diligence!! Sometimes an offer is made that is too good to be true, if that’s the case then better be vigilant. A used car that is sold at a low price may entail inherent damages that the original owner is not sharing and could well be the very reason that he is selling the unit in the first place.

Happy driving!!

MECHANICS' CORNER: Honda City Maintenance

Where spark plugs would be removed and install the new ones

This week a Honda City came in the shop for a basic maintenance, having a tune-up and a change oil. This is important to keep the vehicle's engine in good condition and running for years to come. In addition, having a car that is well maintained allows it to run smoothly and efficiently.

Image of Mobil 1 Synthetic Oil, Oil Filter and Spark Plug

Here, the owner requested for a synthetic oil to be used upon changing the oil. Now typically, this is not common standard as utilizing synthetic oil is much more expensive up to P1,000 - P2,000 more than the regular oil. The upside to this is that synthetic oil last longer, in the sense that you can run your vehicle longer distances prior to changing your oil once again. This is usually advisable for high-end vehicles (as specified by the manual) as well as those vehicles that are used frequently and travel long distances.

Over-all, we cannot highly emphasize the importance of a simple change oil and regular maintenance. It is always better to spend a little on maintenance than spend a lot on repairing or even replacing a damaged portion of the car.

Where to buy a Used Car

As Metro Cebu is progressing, transportation is becoming a big necessity for the general populace. A lot of hard-working Cebuanos are out getting their first car however there are still those who find it difficult to purchase a brand new car and thus opt for the second best thing which is to purchase a used car.

If ever you are in the market for a used car but don’t know where to start? Then you can check out the following places to strike a deal.

1) Newspaper Ads

Classified Ads are not just for those who are job hunting. There are numerous posts daily about cars that are for sale. Check it out the next time you open the newspaper.

2) Used Car or Surplus Shops

There are numerous shops all around Cebu that sell used cars as well as surplus units. These are good places to check out as they do this as a profession and have an office to go back to in case you face any problems. But as always, use common sense before doing any transactions and make sure all the paperwork is legit.

3) Banks

This may seem an odd place to go to when looking for a used car however if you are unaware, there is a variety of repossessed cars hiding in the banks’ garage. You can approach the loans division and ask about the available units that are for sale every month.

Although each bank has it’s own method of selling the repossessed cars. Typically the banks sell the units through a bidding every month. Don't rush on your purchase, often times the initial price goes down every month and you can save about 30% from the original market price.

To find out more you can check out these sites below:

BPI - https://www.ebuenamano.com.ph/vehicles

BDO - https://www.bdo.com.ph/properties-for-sale/vehicles

East West - http://www.eastwestbanker.com/tool/prop4sale_motor.asp

RCBC - http://www.rcbcsavings.com/?p=78

4) Google

Living in the digital age, everything is found through a click of a finger. The same can be said about looking for used cars. There is literally dozens of websites that links buyers to sellers within the Philippines or Cebu for that matter.

Just google for a car you are looking for and voila, there you go. The well-known sites are:

     www.olx.ph

     cars.trovit.ph

     www.ayosdito.ph

     www.carmudi.com.ph

5) Word of Mouth

Ofcourse what better way to look for something than to ask around from your friends. You never know if somebody you know is selling their car and you can buy it for a good price!

There you have it, 5 places to look at when thinking of purchasing a used car.

Take your time and enjoy the process of searching for your next car since buying a car whether brand new or used is a big decision.

To know more about what to look out for when purchasing a used car. Check out next week’s post about How to buy a Used Car.

Photo Courtesy: Google Images

5 Tips on Buying your First Car

Excited to purchase your first car? Here are some tips on what to look out for when purchasing your first car.

1) Find a car that fits your need & budget

You have to assess your need and why you're purchasing your car. If ever your purchase is for city driving then it is smart to look at compact cars such as Kia Picanto, Toyota Wigo, Honda Jazz and the like which are cost efficient and easy to park. Also take into consideration the number of passengers that you would be driving. Is it just you and your significant other or will it be a family car, in which it would be best to get a bigger car like a sedan or an SUV.

By establishing your need and use, you can now look at your budget which leads to the second tip.

2) Shop around for auto loans

Auto loans nowadays are very competitive. With the good economic standing of the Philippines, car loan rates are at an ultimate low. Some banks offer better rates than others thus it is always good practice to look around and canvass for the best deals. It is not always beneficial to take the first offer that you get especially the offers from the dealership.

3) Get the shortest loan term you can afford and make early or extra payments when you can

Upon taking that car loan, shorter is always better. Usually the longer the loan the cheaper your monthly amortization will be however if you calculate your monthly expense, you will find out that you will actually be paying more for your car in interest compared to acquiring a shorter term loan.

So when able, it would be best to take the shortest loan term and when blessed with extra, allocate some of those funds to paying your car loan.

4) Find the best car insurance rates

Insurance is another cost that you have to take into consideration when acquiring your first car. As we say, it is always better to be safe than sorry. Accidents are a part in everyday motoring life and we can drive confidently knowing that we are covered in case anything goes wrong during our drive.

Just like banks, there are numerous insurance companies out there competing to get your business. Shop around and don't get embarrassed to ask around for quotes as well as getting to know the details of the coverage. This will save you time and hassle whenever the need arises that you would claim from your insurance.

5) Test Drive

Seeing is believing! The most important part when deciding on purchasing your first car or any car for that matter is getting the feel for the unit that you are thinking of acquiring. Upon your test drive, you can actually get to know and familiarize yourself with what you are about to buy. If you are not convinced with the performance or any other reason, don't force it. There are other cars out there.

Personal Tip: Based on experience, I highly suggest that you also look at the availability of parts for the vehicle that you are thinking of buying. As a repair shop, we've experienced certain car brands and models stay in the shop for weeks at a time waiting for their spare parts to arrive.

Not to mention the cost. Original parts will always cost more compared to third party or surplus parts. So it's also something to consider. My advice, take a look at the car brand/models on the streets, if it's common, then rest assured there are spare parts highly available in the market.

Over-all, the final say is up to you. If you missed it and want to know the long-term costs of your car. Check the infographic from the previous posts here.

Enjoy your brand new car!

Photo courtesy: Shutterstock

MECHANIC'S CORNER: Mitsubishi Pajero Alternator

Installing the new alternator

This week a Mitsubishi Pajero (Surplus) came in the shop and had an issue with the irratic charging rate of the alternator, in which sometimes it charges the battery and sometimes it doesn't.

Diagnosing and repairing electrical and alternators is a tricky thing as there are numerous factors especially with dealing with surplus units from Japan where the vehicle is converted from right hand drive to left hand drive. Given such, the wiring is also tricky to diagnose as it does not follow the typical set-up of those vehicles that are originally left hand drive.

In any matter, the simplest fix to the problem is to replace the alternator with a new one and observe whether the issue still persists. Luckily, replacing the alternator fixed the issue.

Oftentimes in mechanical work, it is not a sure thing but rather more like a trial and error by eliminating one cause unto the next to find the solution to the problem.

The Annual Cost of Owning a Car in the Philippines

With the booming economy of the Philippines and the income made available from OFW's up to the BPO industry, numerous Filipinos are out looking for their next ride. However many of them are unaware that there is more cost to owning a car than the initial downpayment and the monthly car mortgage.

From the depreciation, fuel cost, insurance, registration and maintenance costs to name a few.

Check out the infographic below about the annual cost of owning a car in the Philippines:

Now that you're aware of the annual cost of owning a car, check out next week's post on what to look out for when purchasing your first car.

Photo courtesy: http://www.imoney.ph/articles/annual-cost-owning-car-philippines-infographic/