Guide To Buying Repo Cars In The Philippines
Are you looking for a great deal on a used car? You might want to consider scouting for the best options in the repossessed cars market.
Repossessed cars – better known as repo cars – are vehicles that have been seized by banks or other financial institutions due to the owner’s inability to make payments on their car loan. These cars are then sold at a discounted price to recoup some of the losses.
Here are our top tips on how and where to buy repo cars in the Philippines, key concerns to look out for, fees and payment terms, and the pros and cons of buying a repossessed car.
How and where to buy repossessed cars
There are several ways to buy repo cars in the Philippines. Some of the most common ones are as follows:
- Auctions: These auctions are usually held by banks or other financial institutions and are open to the public. A deposit is required after registering in order for you to participate in the bidding. The cars are then sold to the highest bidder.
- Banks and financial institutions: You can also purchase directly from banks and financial institutions. These institutions will typically have a list of available cars on their website, and you can contact them to arrange a viewing and test drive.
- Online marketplaces: Another option is to buy a repo car from an online marketplace. Some popular marketplaces in the Philippines include Carmudi, and Carousell (formerly OLX). Be sure to check the seller’s rating and read reviews before making a purchase.
- Car dealerships: Finally, some car dealerships in the Philippines specialize in selling repo cars. These dealerships will typically have a selection of cars available for viewing and test drives.
What to look out for
When buying a repossessed car, there are several key concerns to look out for:
- Condition of the vehicle: Since repo cars are typically sold as-is, it’s important to thoroughly inspect the car before making a purchase. Look for any signs of damage or wear and tear, and take the car for a test drive to make sure it’s running smoothly.
- Legal documents: Make sure all the legal documents are in order before making a purchase. This includes the car’s registration, transfer of ownership, and any outstanding debts or liens.
- Hidden fees: Be aware of any hidden fees that may be added to the sale price. This could include processing fees, taxes, and other charges.
- Inspection and test drive: Always have a trusted mechanic or car expert inspect the vehicle before making a purchase. You should also take the car for a test drive to make sure it’s in good condition.
What fees do you need to pay
When buying a repo car, there are several fees and payment terms to consider:
- Cash payment: Most repo cars are sold for cash, so you’ll need to have the full amount ready when you make a purchase.
- Financing: If you don’t have enough cash on hand, you can also finance the purchase of a repo car. This will typically involve a down payment and monthly payments over a set period of time.
- Down Payment: If you choose to finance your purchase, you’ll typically need to make a down payment of 20% to 30% of the total purchase price.
- Processing fees: Be aware of any processing fees that may be added to the sale price. These fees can range from a few thousand pesos to tens of thousands of pesos, so be sure to factor them into your budget.
Estimated price range for common repossessed cars in the Philippines (2022-2023)
Now that we’ve covered the basics of buying repossessed cars in the Philippines, let’s take a look at some estimated price ranges for some of the most common cars for sale in the repossessed car market:
|Make & model
|₱ 590,000 to ₱ 670,000
|₱ 610,000 to ₱ 798,000
|₱ 410,000 to ₱ 550,000
|₱ 310,000 to ₱ 798,000
|₱ 800,000 to ₱ 1,088,000
|₱ 908,000 to ₱ 1,600,000
|Mitsubishi Montero Sport
|₱ 900,000 to ₱ 1,500,000
Note that these price ranges are estimates only and may vary depending on the specific make, model, and condition of the car.
Pros and cons of buying repossessed cars
Finally, let’s take a look at the pros and cons of buying a repo car in the Philippines:
- Lower Prices: Repo cars are typically sold at a discount, so you can get a great deal on a used car.
- Possible warranty: Some repo cars may still have a warranty, which can provide peace of mind.
- Less depreciation: Since repo cars are already used, you won’t experience as much depreciation as you would with a new car.
- Limited warranty: While some repo cars may still have a warranty, many will not. This means you may be responsible for any repairs or maintenance needed after the purchase.
- Hidden costs: Be aware of any hidden costs that may be added to the sale price, such as processing fees, taxes, and other charges.
- Risks in the vehicle’s condition: Since these cars are sold as-is, there’s always a risk of hidden issues that aren’t immediately apparent.
In conclusion, buying a repo car can be a great way to save money on a used car in the Philippines. Just be sure to thoroughly inspect the car before making a purchase, factor in any additional fees, and consider the pros and cons before making a decision. With these tips in mind, you’ll be well on your way to finding a great deal on a repo car in the Philippines.
The estimated price ranges provided are based on research as of 2022-2023 and are subject to change. Please consult with a trusted car dealership or other reputable sources for the most up-to-date information on repossessed car prices in the Philippines.