Due to the stigma attached, many Filipinos do not choose to purchase repossessions. Has the previous owner kept the car in good condition? What caused the initial repossession of the car?
Smart people are aware of how fantastic of a deal this is, though.
The idea of shelling out hundreds of thousands or millions of pesos to buy a new car isn’t always appealing, especially considering how much its value declines each. Purchasing a repossession is often the best course of action.
Knowing where and how to purchase repossessions in the Philippines is crucial if you’re on a tight budget or want to purchase a new automobile model for less money. We will give our opinion on receiving a repossessed car in this article as well as reveal how to achieve it.
What are Repossessed Cars?
Repossessed cars are those whose owners have fallen behind on payments or have not been able to repay their loans (auto or collateral loans). Similar to a foreclosed home, this operates.
Due to the large number of automobiles being repossessed, banks have already established a procedure to auction them off and sell them to the highest bidder. These institutions want to eliminate the risks associated with holding automobiles that haven’t been paid for.
Repossessed automobiles are typically sold “as is,” meaning that the buyer is responsible for maintaining them in the condition they are in at the time of sale.
Pros & Cons of Purchasing Repossessed Cars in the Philippines
Are you unsure if repossessed vehicles are right for you? There are many justifications for purchasing these vehicles, but there are also some justifications for caution.
The benefits and drawbacks of purchasing a repossession are discussed below.
• Huge savings
Many people long to own brand-new automobiles but are unable to do so due to their hefty price tags. But you can save a lot of money if you can get your hands on a brand-new car model that the bank has seized and repossess.
You may receive a discount of up to 40% off the initial cost of a repossessed vehicle, depending on the bank. This is due to the fact that banks frequently offer favorable terms.
After all, they want to avoid the obligations that come with owning these vehicles.
• Trustworthy sellers
Reputable banks sell repossessed vehicles. There are no concerns while buying cars from these organizations because they are governed by the government.
Compared to purchasing from private merchants, this is safer.
A variety of payment methods
You can purchase a repossessed car using any method, whether you have the cash on hand or choose to take out a loan.
Vehicles are still in good shape.
The majority of repossessions are in decent shape and have minimal mileage.
As a result, you won’t have to worry about replacing these cars for a number of years after you start using them. These vehicles are identical to new ones, just not as expensive.
• Finding the ideal vehicle requires work.
You must filter through a large number of repossessed vehicles in order to select the ideal vehicle for you due to the overwhelming amount of them.
You must be patient because it is a lengthy procedure. Additionally, you must have a plan if you want to win the auction.
• A test drive might not be feasible.
It’s possible that you won’t be able to test drive repossessed vehicles because they are frequently offered as-is. Simply purchase it as-is and cross your fingers.
This is due to the fact that allowing test drives would cause the car’s mileage to increase, which could further reduce its value.
This means that until you start using the car, you might not be aware of its specific issues. This could be a pain, particularly if you end up with a car that has numerous problems.
• Vehicles require cleaning.
These vehicles will exhibit wear and tear due to the fact that their former owners used them. Additionally, some vehicles have spent some time in a warehouse where they may have gathered dirt.
If you want it to be in its best shape, you will need to clean it. This can be a costly, time-consuming, and arduous process.
• Car might not be in great shape.
Repossessed vehicles are occasionally sold in non-running condition. As a result, getting the vehicle ready for the road requires some work.
• You must participate in the bidding process.
In most cases, bidding is used to sell repossessions. This can be frustrating because you are bidding against other people, and the price will increase based on how much the other bidders want to pay for the car.
You must allocate time for the bidding procedure because it can be time-consuming.
Steps for Purchasing Repossessed Vehicles in the Philippines
Step 1: Select an institution/bank that sells repossessed cars
Step 2: Choose a car model
Step 3: Inspect the car in person
Step 4: Make an offer
Step 5: Pay for the car
Step 6: Your car is finally yours to enjoy
Related Articles: CAR REGISTRATION AND RENEWAL
Advice for Purchasing Repossessed Automobiles in the Philippines
- Be truthful.
- Don’t hurry
- Analyze your spending.
- Add up the cost of upkeep and repairs.
- Consider your financial possibilities.
- Examine your auto insurance policy
- Get everything you need in order.
- Create a short list of vehicles.
- If at all possible, bring a mechanic
You may now weigh the benefits and drawbacks of purchasing a repossession in the Philippines and decide if it’s right for you. If you decide to look for repo cars, exercise caution and good judgment to make sure you get the best deal on a high-quality vehicle.
As with any significant purchase, do your research, create a shortlist, and give it some thought before deciding!