Excellent tips on how to buy a car in the Philippines

Aug 25, 2020

Don't know how to buy a car in the Philippines? Then you are in luck. Join us in this article for excellent tips to get your dream car.

Planning to buy a car in the Philippines but have no idea where to start? Check out the following tips from Philcarnews.com on how to buy a car in the Philippines now. Once you have mastered these tips, buying a car in the Philippines will be a piece of cake.

How To Buy A Car In The Philippines - A Step by step Guide

Step 1: Make a Checklist

It's essential to know what exactly you are expecting from the car and get a vehicle that suits your needs.

Make a checklist based on these questions: How many car seats would you need? How many people will ride this car with you regularly? What road surface would you often travel? Do you prefer fuel economy to power? Will this car fit your garage? Etc.

Step 2: Gather information

First-hand experience is said to be the best way to know about a car. Ask your friends for their opinions on the one you plan to buy to see what they've got to say.

Moreover, you can read car blog posts, reviews for more information, and technical specifications of the car you want.

Step 3: Consider Financing Options

There are two ways to pay for a car purchase: Instalment or paying full in cash. Though you won't need to worry about monthly payment or the interests by paying in cash, it also means you are giving a large sum of money immediately.

Remember to consider your financial situation carefully before deciding on your payment method.

Step 4: Consider Insurance Options

Remember to check out the vehicle Insurance Options carefully and see if it's suitable or not.

Things such as prices and track records declared accessories and modifications, inquire about fixed deductibles or claim insurance for inexpensive repairs, etc. should also be considered.

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Step 5: Test Drive

It is best to have a test drive with the car you want to purchase. By driving it quickly, you could feel the connection and maybe find out details about the vehicle.

test drive when buying a car in the Philippines

Step 6: Review long term costs

Buying a car does not end after you brought it home. The vehicle's long-term cost also plays an important role: Fuel cost (depending on the car's model), Fees (LTO registration, maintenance, repair), car insurance, etc.

Step 7: Prepare Essential Documents

Payment documents

The most common types of payment documents needed to successfully purchase a car are: Check from the bank, check from a pre-approved loan, check from the cashier, or personal check.

The paying term depends on both parties' agreement. The dealer will take responsibility for your instructions regarding the payment documents if you buy a brand new car. In contrast, buying a second-hand car is less complicated.

You will not need to provide proof that you can afford the car if you agree to make a cash purchase with the dealer. A rational conversation with each other can act as a price dealing process.

Don't forget to prepare payment documents when buying a car in the Philippines

Driver's license

The driver's license is the most important document you would need, especially if you are planning to buy from a dealership. Dealerships buying processes and protocols require photocopies of all your necessary purchasing documents for their data record.

The driver's license is the most important document

On the contrary, the requirement isn't that strict when buying a used-car, the sellers will have it covered for you. If you want to buy the car and make it into a third-hand vehicle, having a license will surely help. You would also need to present bills such as water, electricity, etc. to support your legitimation.

Car insurance

The insurance fees are not part of your original bills, but you will still need it for your car. The dealership may give you some recommendations, but they are nothing you can't decline.

Take time and study carefully about car insurance in the Philippines before purchasing the vehicle. There are many different types of car insurance, and you don't want to come unprepared.

All in all, try finding an insurance package suitable for you, both in terms of uses and price ranges.

Car Title

The car title can show who has the legal ownership of the vehicle. It also resembles the purpose of the sale contract.

When you want to buy a car someone has posted online, tell them to send you the car's documents, then proceed to check their legitimacy. Never pay advance to sellers who have not given you the cars' actual documents to avoid fraud.

If you've received the original copy of the car title, check if it contains these details:

The date of purchase wherein you agreed to buy the vehicle, the car's price (in numbers and words), and an odometer reading display the car's miles.
Signatory proof that both parties agreed to everything stated in the title, and there is no problem with the purchased goods whatsoever and notarization to show that the law recognizes this agreement.

Deed of Sale

You can find a free template of this document on many online websites. The act contains the following information:

Model
Make
Type of body
Motor number
Plate number
Vehicle identification number
Official receipt number
Car registration number
Purchase price
Sell date
Personal information of both parties

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Registration Certificate

The registration certificate shows the car's chassis and engine number. It's a long but necessary process, whichever religion you bring the vehicle to, it needs to be registered.

Purchase Receipt

Companies would more likely provide you a receipt than an individual seller. The purchase receipt acts as a reliable backup for you to have the right to receive the product you purchased.

Generic receipts need to have these details on it:

Cost
Name of Merchandise
Date of purchase
Names of the two parties

How To Buy A Car In The Philippines - Conclusion

That was the end of our article on how to buy a car in the Philippines We hope you enjoy our advice and find them helpful. Whether you're buying a new or used car, the tips above could make your car purchasing process much more comfortable. Be a smart buyer, and good luck.

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