Why Own a Car in the Philippines?

Do you want to own a car? (as if someone would say “no” in response to this question).

According to a study done by an independent survey company in 2013, 87% (eighty-seven percent) of us, Filipinos view cars as tools to get us where we need to go. It is easy to say that this is due to the horrendous public land transportation climate in the country, which includes long lines in railways, uncomfortable riding situations on buses, and expensive fares. Unfortunately, the increasing number of cars owned by individuals traveling to and from their office, does not do any good, either. It results to worsening traffic jams, related to higher car volumes on the roads. The increasing population and urban congestion could only mean one thing – more and more cars. However, having a car of your own, will still be a better solution to the exhausting public means to commute in the metro versus other alternatives like riding TNCs which have just been becoming expensive day by day. Moreover, efforts from the Government and private sectors to decongest our roads are ongoing, which means better driving future for the car owners.

How costly is it to actually own a car? First, purchasing a new car unit would cost you 400 (four hundred) thousand pesos to more than 2 (two) million pesos, of course depending on the brand, make, model, and size. Second, you definitely need fuel, which price’ ranges from 40 (forty) pesos to 62 (sixty-two) pesos per liter depending on the fuel type, brand, and the area or region where you’re gassing up. Its alternative, LPG (Liquefied Petroleum Gas), costs around 645 (six hundred forty-five) pesos to 900 (nine hundred) pesos per 11 kg tank. Comprehensive car insurance costs around 5 (five) thousand pesos to more than 50 (fifty) thousand pesos, depending on the car’s fair market value. All of these, could really get hefty, if topped with maintenance costs (both regular and spontaneous), toll fees, cleaning, and parking fees.

Looking at the brighter side, there are practical ways to go around the expenses related to owning a car. You can purchase pre-owned or second-hand units guided by your own knowledge, or that of an expert, in case you’re new to the automotive world. Needless to say, those pre-loved units cost from as high as 98% (ninety-eight percent) of its original fair market value, to as low as 30% (thirty percent), depending on its age, condition, mortgage status, insurance status, and alterations. A lot of the used units are being sold for the purpose of upgrading. Filipinos display the highest level of intention to upgrade globally, per the same survey conducted. More than 9 (nine) in 10 (ten) Filipino car owners (96%) intend to upgrade their vehicle when they are financially able versus 95% (ninety-five percent) in Indonesia, 93% (ninety-three percent) in Malaysia, 89% (eighty-nine percent) in Thailand, 87% (eighty-seven percent) in Singapore, and 89% (eighty-nine percent) globally. You could also utilize your car to earn extra, by making it part of a transportation network, like Grab or Hype, be it brand new or second-hand.

Filipinos also believe that their car is an important symbol of the success they have achieved in life – surprise, surprise! The Philippine market along with two other Southeast Asian markets ranked in the top 10 countries globally when it came to viewing their car as a status symbol – 72% (seventy-two percent) Filipino car owners, next to Thai car owners, with 79% (seventy-nine percent). Now, as it has been in the last couple of years, Filipino consumers, particularly emerging middle-class consumers, have an increasing power to purchase things that they want and need, including cars, according to another study.

So, go find that car that suits your needs and budget, and either purchase it soon, or just keep an eye on it, until you have means to buy one.

For feedback or inquiries about this write up, please email  aoguanzon@gdfi.ph

Note that above price references were as of October, 2018. For your loan needs, apply for a Global Dominion loan product here.

Source: TopGear PH