Owning a Used Car in the Philippines: CARSOME’s Comprehensive Guide Explains Extra Costs Beyond the Deal
Manila, Philippines | 21 January 2024 - You've set your sights on a pre-loved Toyota or maybe a second-hand Honda, but have you considered the full cost? Buying a used car isn't just about the sticker price. There are additional expenses – mandatory by law, not by dealers like CARSOME – that can impact your budget.
Let's navigate these often-overlooked costs to ensure your car purchase is as smooth as Manila's EDSA on an early Sunday morning.
Beyond the Price Tag - Extra Costs in Used Car Buying
Vehicle Registration and Transfer Fees: When buying a used car, transferring the registration to your name is a must. This process involves fees set by the LTO (Land Transportation Office) and is non-negotiable.
Insurance Costs: Compulsory third-party liability (CTPL) insurance is mandatory in the Philippines. Additionally, consider comprehensive insurance for added protection to safeguard your prized cars, especially popular models like the Mitsubishi Montero or Ford Ranger.
Roadworthiness Inspection Fees: Getting your pre-owned vehicle checked for road safety is not just a wise move but often a requirement. These inspections can reveal hidden issues, so budget for potential repairs.
Maintenance and Upkeep - The Ongoing Costs
Service and Repairs: Even a well-maintained used Hyundai or Ford may need immediate servicing. Set aside a fund for unexpected repairs.
Part Replacements: Wear and tear parts like brakes, tires, and batteries will need attention. If you’re looking at older models, like a 2005 Toyota Corolla Altis, anticipate these expenses.
Fuel Efficiency Considerations: Older cars may not be as fuel-efficient as newer models. Factor in the potential increase in fuel costs, particularly if you’re eyeing a spacious SUV like the Nissan Terra.
Legal and Administrative Expenses
Documentation Costs: Legal fees for notarizing documents like the deed of sale are small but essential expenses.
Tax Implications: Understand the tax obligations when purchasing a vehicle, as they can affect your overall budget.
Emission Testing Fees: Regular emission testing is required in the Philippines, ensuring your vehicle complies with environmental standards.
Purchasing a used car in the Philippines is more than just paying the asking price. From mandatory LTO fees to insurance and maintenance costs, being financially prepared is crucial. Equip yourself with the right knowledge to make your car-buying journey worry-free. Ingat sa pagbili ng kotse!
