Buying a car in the Philippines

Great question, and of interest to myself.

before buying a car or anny other vehicle maibe it is good to get a Philippino drivers license he.
the way i did this is quite simple
first i got my (european) licens fotcopyd translated and oficialised in the embassy
with those documents i went to LOT and next door to LOT i got amedical clearance andin one day i had my local drivers license
costs:LOT 617 Php ;medical clearance 200Php
so not expansive at al and i chased al fixers who presented there weelings and dealings away by telling them i woold cal the ombudsman to get them prosecuted for coruption
i kinda dislike fixers
i did not buy a car but a trike (new) the reegiwtration can take up to 6 months
but the sails person asured my i can alredy use it on the road
i wil update on how it go's
hope this was helpful
greets Dirk

Hi

I think you need to have Alien Certificate Residents before you can buy o register a car

nope,dont need alian registration ,amnot an alian ,am from earthhaha ,but just to be sure the trikeisin my wife's name for registration ,so that is no problem.
greetsDirk

thanks for the info!

Drivers license: With my US license in hand I acquired my Philippine license from the LTO without issue within a couple hours of applying. I don't remember the exact costs but if you can't afford it you probably shouldn't move here. It is the same price Filipinos pay. I was told I had 30 days to acquire the license  from the time of my arrival in the Phil using my US license for reference.

Buying a car: We shopped cars based on their reputation for dependability, parts costs, availability of parts, and what mechanics thought of ease of repairs. Based on our needs we purchased a Toyota Altis with 24k miles on a 7 year old vehicle from a local dealer who was recommended by two family members. Having some mechanical abilities, I also did a thorough check of the vehicle myself and at a shop on a lift. We also did a two hour test drive to check for overheating, AC, rattles, transmission, and other things you often do not see in a ride around the block. We looked for evidence of water from flooding on the floorboards, under the dash and under the car, even if cleaned, evidence of water can usually be seen on wiring.
We looked at buying from a private owner (we personally knew no one selling a vehicle), and we were warned by family and friends against it. We found problems with titles in the three vehicles we did look at, such as a title in someone else's name other than the seller, no registration, so we went with a dealer who also provided a warranty and spent a little more than we would have from a private owner. We have had the vehicle for 3 years now with no trouble.
User jeeps and trikes are also quite inexpensive as are vehicles like the Suzuki multicab.

        For those who think vehicles are cheaper in the US, this is the Philippines is not the US

Insurance: We purchased our insurance from Standard insurance based on recommendations and reviews from other policy owners. Price varies for coverage and vehicle.

You can also check the vehicle for issues with the LTO such as stolen vehicle report or bad record with the LTO by typing a text message to 2600, with the message content of: Lto vehicle VDT777 (license #) for the cost of 2.5 pesos and receive a text indicating clear or with a problem. See link below.

http://www.ltolicensephilippines.com/ve … rehension/

Good luck and I hope this is of some help.

Tee Jay,
The only thing in your post that I find possibly in error in how long the validity of your US license is, the way I understand it it is valid for 90 days, but, of course, nothing says you must wait until the 90 days. I believe the total cost for a dl  is less than 500 Peso's. I would strongly advise against user a "helper" that you find hanging around outside the gate. If you feel the need to give away your money, contact me and I will take it off your hands.

madhatter868 wrote:

Tee Jay,
The only thing in your post that I find possibly in error in how long the validity of your US license is, the way I understand it it is valid for 90 days, but, of course, nothing says you must wait until the 90 days. I believe the total cost for a dl  is less than 500 Peso's. I would strongly advise against user a "helper" that you find hanging around outside the gate. If you feel the need to give away your money, contact me and I will take it off your hands.

I stand corrected, it is 90 days!

There are helpers and services. Our insurance company provided a guy to take my wife (along with 4 other foreigners) to the LTO to expedite converting her license. In and out in 15 minutes. He stayed for another 6 hours to wait and pick up the OR with a temp stamp on the back as the Quezon City LTO did not have any plastic cards. Cost was additional p200, well worth it in my opinion.

dhnindc wrote:

There are helpers and services. Our insurance company provided a guy to take my wife (along with 4 other foreigners) to the LTO to expedite converting her license. In and out in 15 minutes. He stayed for another 6 hours to wait and pick up the OR with a temp stamp on the back as the Quezon City LTO did not have any plastic cards. Cost was additional p200, well worth it in my opinion.

Wow, great service. Can you provide the name of the insurance company and a contact number to share with those who might be interested in availing themselves of the same services.

Thanks

Winebrenner & Assoc.  You would need to google for their locations.

Kenjee wrote:

Hi,

To be able to move in the Philippines, a lot of expatriates think of buying a car, whether new or second-hand.

What are the formalities to buy a vehicle in the Philippines: car registration, insurance, etc.?

What are the relevant authorities or organizations to contact?

How long does it take and what are the associated costs?

Thank you in advance for sharing your experience,

Kenjee

i dont know how it is for cars but i think it will be the same as for the trike i both (in my wife's name to avoid extra paperwork and expences haha)
as i payed the trike i coold drive it imediatly , registration can take  between 3to 6 months but i got a temporary registration plate so am within the law ,thank you Racal for the good servis
greets Dirk

I bought a used bike from individual. Just need a notarized deed of sale, OR and CR. Also copy of drivers license with 3 signatures on it,

No problems transferring ownership.  Again, Winebrenner did the actual LTO filing for me for a small fee.

This is a noteworthy topic!  I have waited many months to zero in on my used car of choice and collecting info along the way. This is not an attempt to debate new vs. used.  This is about personal preferences and mine is for a used RWD, V6, Sedan/Wagon with GM or Toyota DNA.   Here are a few observation/opinions:

LTO - Your day at the local LTO may be very smooth or could be otherwise.  The requirements for transfer of ownership seem to slightly very based on the day you visit and who helps you.  Some never ask the expat for their TIN and on other days, they do mention it. Officially, it is one of the stated requirements for new purchase or transfer.   In my case I have it so no issue. 

Insurance options - After observing the many offerings for insurance near the LTO (Tagaytay), I elected to get my policy thru my local BPI Bank.  This enabled me to get a policy that would be accepted anywhere in the PI and would make scammers thing twice about filing a false claim with BPI backing my car.  The quoted cost for my car was at least P1200/year in most places asked.  The BPI policy cost for the exact same coverage was P621/year. 

Service Options - This is where I have had to be very calm and wait.  I elected to buy both tools and parts from the USA (shipped to my family in California) than shipped here (yes, via Balikbayan boxes) to do 99% of my servicing.

This requires careful selection of type of items to be placed in the box and the selection of the shipper.  Some shippers allow tools but no car parts and others allow car parts (i.e., plugs, coil packs, wires, filters, etc.). 

This option may not be recommended for most expats here unless you are a "gearhead" hobbyist like myself.

A/C - A very big issue for me is the A/C and most shops here will not service/recharge the R134A based system properly.  The methods used here will shorten the life of the compressor resulting in a P15-20K new compressor that will be dead again within a year. 

Other issues are lack of maintenance and improper part selection/selection based on the lowest price first. Even if the car is a local model, there can be so much "short-cut" repair history in the car that will need attention.  This is one of the factors associated with buying used.

Parts/Maint Items - I plan to use the items available at SnR to take care of tires/batteries. 

My last hill to climb is attempting to get a few 12-20 Oz R134A refrigerant cans …. I don't need the 30 Lb tank offered by most.

Check Walmart I saw some 12Oz cans for $15.00 you can buy online. How you could get them sent here, I don't know

Thanks Mad, I am trying to source small cans of R134A from within Asia first.  It can be complicated shipping R134A from California to the PI.

madhatter868 wrote:

Check Walmart I saw some 12Oz cans for $15.00 you can buy online. How you could get them sent here, I don't know

maibe these can be aquired on line at GALLEON (Pilippines AMAZON) ,I use this site regulary to get US items on line here ,upto now no complains except maibe the shipping costs ,these can be in some cases ,lets say extaordenary,hihg.
hope this was useful

greets Dirk

Thanks Dirk, I will check into that source.

Calif-Native wrote:

This is a noteworthy topic!  I have waited many months to zero in on my used car of choice and collecting info along the way. This is not an attempt to debate new vs. used.  This is about personal preferences and mine is for a used RWD, V6, Sedan/Wagon with GM or Toyota DNA.   Here are a few observation/opinions:

LTO - Your day at the local LTO may be very smooth or could be otherwise.  The requirements for transfer of ownership seem to slightly very based on the day you visit and who helps you.  Some never ask the expat for their TIN and on other days, they do mention it. Officially, it is one of the stated requirements for new purchase or transfer.   In my case I have it so no issue. 

Insurance options - After observing the many offerings for insurance near the LTO (Tagaytay), I elected to get my policy thru my local BPI Bank.  This enabled me to get a policy that would be accepted anywhere in the PI and would make scammers thing twice about filing a false claim with BPI backing my car.  The quoted cost for my car was at least P1200/year in most places asked.  The BPI policy cost for the exact same coverage was P621/year. 

Service Options - This is where I have had to be very calm and wait.  I elected to buy both tools and parts from the USA (shipped to my family in California) than shipped here (yes, via Balikbayan boxes) to do 99% of my servicing.

This requires careful selection of type of items to be placed in the box and the selection of the shipper.  Some shippers allow tools but no car parts and others allow car parts (i.e., plugs, coil packs, wires, filters, etc.). 

This option may not be recommended for most expats here unless you are a "gearhead" hobbyist like myself.

A/C - A very big issue for me is the A/C and most shops here will not service/recharge the R134A based system properly.  The methods used here will shorten the life of the compressor resulting in a P15-20K new compressor that will be dead again within a year. 

Other issues are lack of maintenance and improper part selection/selection based on the lowest price first. Even if the car is a local model, there can be so much "short-cut" repair history in the car that will need attention.  This is one of the factors associated with buying used.

Parts/Maint Items - I plan to use the items available at SnR to take care of tires/batteries. 

My last hill to climb is attempting to get a few 12-20 Oz R134A refrigerant cans …. I don't need the 30 Lb tank offered by most.

___________________________________________________________________________________
Ca Native,

You stated your insurance is from BPI  through MS of Japan, a joint venture with BPI. Is your coverage based on Compulsory Third Party Liability (CTPL) as required by the LTO or do you have additional Voluntary Third Party Liability-Bodily Injury (VTPL-BI) coverage?
Other options are Unnamed Passenger Personal Accident (UPPA) and Voluntary Third Party Liability-Property Damage (VTPL-PD)
Most banks seem to offer auto insurance and dealing with a branch in your area is a convenient plus. though our Standard insurance is also available throughout the Philippines and is considered to be one of the best insurance companies in the nation. If interested their website is easily accessed online and they are dealer partners with nearly every new car auto dealer in the Philippines. Their coverage is in line with your BPI coverage cost and they also offer home insurance and the additional coverage's listed above as well as towing.
Insurance brokers are also out there on the web as another poster listed.

Air conditioning: Though I do not charge our AC myself, our last charge was three years ago with no maintenance on the AC since that time the mechanic of choice apparently makes a difference in a job well done.

Maintenance: Our vehicle is a Toyota Altis 1.8L G model 2005, purchased 3 years ago with 24K original miles and verifiable maintenance and parts records were provided. The owner of the vehicle also happened to be the wife of the co-owner of the dealer and also owned two organized repair shops, one in Imus and one in Dasmarinas with lifts and up to date equipment.I also did all of my own mechanical work for most of my life and found little wrong with the vehicle aside from cosmetic. We did put it on a lift in a garage in Dasmarinas and aside from tires, tune-up and oil change we have replaced hoses and belts, though they most likely could have stayed on the vehicle a little longer. Mechanical ability and common sense seem to help in making a purchase and the text of the license plate number to LTO 2600 will bring up any red flags with regard to registration and title. If the seller can't produce them, move on.

Again for the reasons you listed and because we knew no one selling a vehicle we would be interested in, we did not purchase a vehicle from an individual and the three we did contact had trouble with titles and registrations. We went with a recommended dealer with who was more than happy to accommodate our questions, inspections and a lengthy test drive.

Refrigerant: If you find small 12oz cans of refrigerant let us know. I have not seem them. Can you ship them here with your parts?

TeeJay,

The California to PI R134A shipment option is being carefully evaluated for sure.  I want to store both 12 & 22 oz cans.  Once I return from a small trip late Feb, I was planning to make contact and visit you two.  I will be very happy to talk details about the R134A at that time..  Sorry, I was not able to recover your CP number from a past phone issues …can you please private msg me here in EC with your contact info again.  Thanks

Hi Teejay & Calif native
I am coming home in a few days there in the Philippines and any dealer that you have used in the Manila (Q.C or Taguig) would be a great help to . My email is xxx or you can contact me here. Thank You in Advance to both of you always very informative . I like to think we all have joined this site to create a family of helping each other in our country of choice for the moment. Again thanks for providing that information if you can.

Hello Mixknight,

Sorry, I am not the one to provide dealer name/location/contact info in that I don't trust them and I have not had any dealings with them in the PI.  I am sure there are other Expats here that have better answers than I on the above. 

However, I suggest you try to be very prepared with answers to questions that include:

-Size of car vs. size of human/family unit,
-Gas vs Diesel,
-FWD vs RWD vs All wheel drive,
-Car vs SUV/XUV,
-Manual trans vs Automatic,
-Your intended area/province to reside vs proximity to service/parts,
-Tire, brake and general drivetrain reliability on rough roads,
-Budget for monthly expenses (my target is about P8-10K for gas and maint.),
-LTO reg costs and annual insurance costs based on above selections

It is important that you answer the above for yourself  and then decide level of detail you want to share with "stealership". 

With that said, I have selected a RWD car due to a typical stronger drivetrain and better wear on tires and brakes.  Many of the roads and traffic conditions here will beat the suspension and result in faster CV, tie rod end wear, Rack n pinion and brake wear. 

I selected a German built Opel Omega and came prepared to obtain parts from the USA vs. a local model but others may not find this a good option for them.  This option requires a good knowledge of cars where you are aware of like or similar US Models, with many of the the parts being the same. In my case, Opel Omega = 95% Cadillac Catera.  If you get an imported model not built/assembled here, your cost to maintain could be higher (new or used).

If new purchase is your option, be reedy for the big hit on value and possible dealer issues if you don't live close to where you purchased it.  If used, be ready for and factor in possible poor to zero maintenance (including records of such) and very late registration/transfer of ownership issues.  Some here will not perform required maintenance at all and just drive until it must be fixed or parked. 

I wish you the best in your search.

Thanks so much

I live in Philippines. I am an American. My wife is Filipino/ American dual citizen. I bought a SUV. I bought it brand new. Reason being all the issue you can encounter buying used. If this was the USA I would have bought certified used. But it's not. Bought Toyota because of ease of getting parts. Bought from Toyota dealership.

I bought a Toyota Prado. I bought gas version vice diesel. Less cost up front gas vice diesel.
You can if you choose to finance a vehicle thru your home country. At least the USA you can. When you buy new you pay insurance up front. 3 years in advance. I debated buying new ford Everest vice toyota. Toyota in my book are more reliable.

Wayne 07,  I have to disagree with you regarding financing a vehicle in the PI with a Loan from a bank in the US.  I asked my credit union about that and they said Nope!   Where were you able to get this loan from an American bank or credit union?  It would be helpful for all expats to be able to have that option from the PI. Instead of paying from 17-28% on a car lain.  I personally would never pay such exorbitant rates, but a lot of my Filipino friends do that.  Thanks for the info.  rainrider9.