# Buying a car in Subic Bay



## WestieRed

I've only done a tiny bit of research about buying a car but the little I've done was surprising. It appears used cars are more costly in the Philippines than in the U.S. 

For example this cube type car asking price is $7,500, this is a few thousands more than I expected although the miles seem low. 

Is there such a thing of a 2-3,000 dollar decent car available in the Philippines?

For more costly cars how does the loan process work for expats? Do the use a SSN number? References? Employment history?

What side of a car is the steering wheel typically on?


----------



## jon1

WestieRed said:


> I've only done a tiny bit of research about buying a car but the little I've done was surprising. It appears used cars are more costly in the Philippines than in the U.S.
> 
> For example this cube type car asking price is $7,500, this is a few thousands more than I expected although the miles seem low.
> 
> Is there such a thing of a 2-3,000 dollar decent car available in the Philippines?
> 
> For more costly cars how does the loan process work for expats? Do the use a SSN number? References? Employment history?
> 
> What side of a car is the steering wheel typically on?


Vehicles are almost double the cost of the states. This includes even motorcycles. If you do find a vehicle in the $2-3000 range it's going to be at least 10 years old and most likely on it's last leg.

Check this out for a comparison to what it costs where you are now... Ford Philippines | Ford Price Lists for the Latest Models

Brand new vehicles are not a good deal. Your best bet is to try to find a 5-6 year old vehicle in good condition. Even then, assume that it hasn't been taken care of (preventative maintenance, fluids, oil, etc.).. I am guessing that a vehicle of that age is going to for 3-400,000php.

A good place to look is on Sulit Sulit Cars - Buy and Sell Cars Philippines

I couldn't speak on the loan question. I have no idea as I bought my vehicle cash.


----------



## Asian Spirit

jon1 said:


> Vehicles are almost double the cost of the states. This includes even motorcycles. If you do find a vehicle in the $2-3000 range it's going to be at least 10 years old and most likely on it's last leg.
> 
> Check this out for a comparison to what it costs where you are now... Ford Philippines | Ford Price Lists for the Latest Models
> 
> Brand new vehicles are not a good deal. Your best bet is to try to find a 5-6 year old vehicle in good condition. Even then, assume that it hasn't been taken care of (preventative maintenance, fluids, oil, etc.).. I am guessing that a vehicle of that age is going to for 3-400,000php.
> 
> A good place to look is on Sulit Sulit Cars - Buy and Sell Cars Philippines
> 
> I couldn't speak on the loan question. I have no idea as I bought my vehicle cash.


Jon, do they still have the vehicle auction places over towards Cubi Point? Rod Hegerty that use to own Swagman Hotels got good deals on everything from buses to pickup trucks there. Many had been converted from right hand to the normal left hand drivers side.


Gene


----------



## jon1

Gene and Viol said:


> Jon, do they still have the vehicle auction places over towards Cubi Point? Rod Hegerty that use to own Swagman Hotels got good deals on everything from buses to pickup trucks there. Many had been converted from right hand to the normal left hand drivers side.
> 
> 
> Gene


Yes they still do auctions.

.: Ichiban Import-Export Corporation :: Subic Bay Freeport Zone :.

United Auctioneers Inc - Trucks And Equipment Public Auction In Subic Bay Philippines

http://www.sbtjapan.com/region/philippines

I am leery tho of buying a vehicle that was converted RH to LH drive. I have read elsewhere that it's pretty much a coin flip if they did the conversion correctly and if not, it costs a lot to remedy what has been flubbed...


----------



## M.C.A.

WestieRed said:


> I've only done a tiny bit of research about buying a car but the little I've done was surprising. It appears used cars are more costly in the Philippines than in the U.S.
> 
> For example this cube type car asking price is $7,500, this is a few thousands more than I expected although the miles seem low.
> 
> Is there such a thing of a 2-3,000 dollar decent car available in the Philippines?
> 
> For more costly cars how does the loan process work for expats? Do the use a SSN number? References? Employment history?
> 
> What side of a car is the steering wheel typically on?


Cars are very overpriced here, I have seen some owner jeepeny's for 65,000 peso's and they are really nice vehicles and heavy duty the parts are very easy to find and cheap, trouble with any car here is that they don't carry spare part stores and you either need to get it used at a junk shop or rebuilt or machined if possible, if you can believe that, or just order the part from the US. 

They do sell small-medium sized trucks that have been rebuilt here but resold with used engines for $4-5000, I almost bought one it had a built in hydraulic lift, really nice.

Steering wheel is in the same spot, same with right hand side driving, in order to drive here you have to submit your state side drivers license to the LTO branch within 90 days of entering the country in order to get a Philippine License, driving is way different here, if you hit someone and it's not your fault in any way what so ever you are still charged and if you kill that person you are charged with reckless driving resulting in homicide, I see this almost weekly on the news, it don't matter what happened, that's why I drive very slowly and try to reach for a higher level of patience a level I have never been to, so many obstacles not only on the road but the many motorcycles that drive on the left and right hand side of you all normal everyday traffic here, I still like to drive though. 

Banks do loans, here's a short cut to my bank and it gives you an idea of just how bad the interest rates are: http://www.pnb.com.ph/index.php?option=com_content&view=article&id=139&Itemid=76 interest rates are normally 100% on up to 200% if you can believe that from the dealer, most people here will buy with their credit card or save forever.


----------



## HondaGuy

Before I bought my car a few years ago (A Honda of course), I looked at literally HUNDREDS of used cars. Im not over exaggerating. I went to every used car lot in Ortigas and several over by Greenhills and in Makati looking for the right car.

I finally found a late 90's Accord Automatic (rare!) with around 95k kms that had 1 previous owner and lots of maintenance documentation from one of the local Honda dealers. The asking price was p265k and I was able to get them down to p250k and they paid the transfer fees.

Could the maintenance and owner papers have been faked? Sure, but if they were, they were REALLY good fakes going back to the day the owner bought the car.

I did take my filipino driver with me during the negotiations and he (my driver) told the seller that he was the one buying the car and I was only there because I was loaning him the money and I wanted to make sure he was buying a reliable car. Dont know if they went for it, but they did come down more on the price than I expected.

I had worked in an auto shop when I was in college, so I knew what to look for and the car certainly appeared to have had the maintenance done to it, but after I bought it, I went ahead and had my driver take it in for a tune up, full fluid change and to go ahead and replace the timing belt, belt bearing and water pump just to be safe.


----------



## Phil_expat

I have purchase a new scooter (Chinese) and recently new motorcycle since I been in the Philippines. When I bought the scooter I kept asking what the price was out the door. The sales man gave me a confused look of not understanding. Unlike the USA the price includes everything with no add on. That is sales tax (VAT), registration, insurance, extended warranty (3 years) and anything else you could think of. I did buy new because maintenance in the Philippines is very bad. Example my wife father bought a new scooter years ago and now is having troubles. He NEVER checked or changed the oil since he got it. There was NO oil!


----------



## pakawala

OLX.ph - The Philippines' #1 Buy and Sell Website is a decent site for used cars.

IMHO, avoid the converted Subic auction cars. There is frequent negative stories about them on the news. (Fires, Accidents from the conversion, etc.).

Yes, vehicle prices are high but if you really want a "SHOCK", inquire what car parts cost.


----------



## Piratepete

*Second hand cars*

However, just keep in mind that there is almost nowhere that you can drive long distance, so mileages on older vehicles can be quite low.

Also keep in mind that the normal driving speed in cities and built up areas is about 30 kph. So far less engine wear than in my country (Australia) where we regularly drive at 80-100 kph.

Also, the comment about lack of maintenance is correct. This can be seen everywhere, including houses decaying for lack of simple maintenance.

PP


----------



## DonAndAbby

jon1 said:


> Yes they still do auctions.
> 
> .: Ichiban Import-Export Corporation :: Subic Bay Freeport Zone :.
> 
> United Auctioneers Inc - Trucks And Equipment Public Auction In Subic Bay Philippines
> 
> ISUZU ELF TRUCK 2008/2 For Sale, Used ISUZU ELF TRUCK 2008/2 Exporter, Dealer, Trader | Japanese Used Cars Exporter, Dealer, Trader, Auction | SBT JAPAN
> 
> I am leery tho of buying a vehicle that was converted RH to LH drive. I have read elsewhere that it's pretty much a coin flip if they did the conversion correctly and if not, it costs a lot to remedy what has been flubbed...


They no longer import the converted passenger vehicles in Subic. They may have a few left on the lots. When we visited one of the main dealers about 18 months ago he had 7 vehicles left and I would guess that was the bottom of the barrel. Aquino came through here a few years ago and said what the hack are all these imported passenger cars doing here? That was the end. However, if you need a truck, bulldozer, crane, cement truck, etc., there are plenty of those!

You can find the converted vehicles for sale from private parties but I would never buy one for the reasons stated.


----------



## JRB__NW

Piratepete said:


> However, just keep in mind that there is almost nowhere that you can drive long distance, so mileages on older vehicles can be quite low.


This is definitely true, especially here in Cebu, where I am. Takes an hour to go 10km sometimes in traffic. The 9 month old 2014 Kia Rio hatchback I bought only had 3k on it.



Piratepete said:


> Also keep in mind that the normal driving speed in cities and built up areas is about 30 kph. So far less engine wear than in my country (Australia) where we regularly drive at 80-100 kph.


I disagree here. The low speeds here constantly slip the torque converter, and along with constant shifting, heat the transmission fluid, contributing to excessive wear. Also the slower speeds and congestion are much harder on the car in general. More shifting, more break wear, etc.



Piratepete said:


> Also, the comment about lack of maintenance is correct. This can be seen everywhere, including houses decaying for lack of simple maintenance.
> 
> PP


Boy is this ever true. I wouldnt buy an older used vehicle for that very reason. Unless from another foreigner. I see motorcycles all day long with chains that appear to never have been adjusted. Can't imagine the oil gets done. I'm kind of a car nut so this stuff drives me crazy. Been coming here for a year now and living in Cebu last six months.


----------



## pakawala

Piratepete said:


> However, just keep in mind that there is almost nowhere that you can drive long distance, so mileages on older vehicles can be quite low.
> 
> Also keep in mind that the normal driving speed in cities and built up areas is about 30 kph. So far less engine wear than in my country (Australia) where we regularly drive at 80-100 kph.


Not so on Luzon. Long distance travel is quite normal here using the national highways and the many expressways.

I just drove 250km today from La Union to AC then to S&R Pampanga back to AC virtually the entire trip on the TPLEX/NLEX were the speed is 100 but most drive 120

From here i'll head to Olongapo then back to La union almost all on freeway at speeds close to 120 and i'll end up with about 750 on the car in less than 1 week. 

---------

As for looking for car deals that was mentioned, one can look at the websites of the major PI banks and submit bids for the repos they list. Some require you actually see the vehicle in person before posting the bid.


----------



## protraveller

I do not recommend buying a converted car. It just doesn't worthwhile the risk. Yes, cars are overpriced in the Philippines when compared to US. As far as I know, Subic Bay free trade zone has not been great lately for buying cars.

But you can still find some decent cars for sale at good value. <Snip> For expats, I suggest taking a local person along to negotiate (preferably with car experience). 

Depending on your situation, it is also recommended to live close to work and do the other communing by taxi, which is inexpensive in the Philippines.


----------



## Sirrat

Piratepete said:


> However, just keep in mind that there is almost nowhere that you can drive long distance, so mileages on older vehicles can be quite low.
> 
> Also keep in mind that the normal driving speed in cities and built up areas is about 30 kph. So far less engine wear than in my country (Australia) where we regularly drive at 80-100 kph.
> 
> Also, the comment about lack of maintenance is correct. This can be seen everywhere, including houses decaying for lack of simple maintenance.
> 
> PP


What do you call long distance? My God you can drive for 24 hrs straight and still not make it all the way across Luzon. I guess in Australia a 24 hr. drive is just a short run. lol And the stop and go heavily congested city driving is way worse on an Automobile than highway driving is.


----------



## M.C.A.

*Taxi inexpensive?*



protraveller said:


> I do not recommend buying a converted car. It just doesn't worthwhile the risk. Yes, cars are overpriced in the Philippines when compared to US. As far as I know, Subic Bay free trade zone has not been great lately for buying cars.
> 
> But you can still find some decent cars for sale at good value. <Snip> For expats, I suggest taking a local person along to negotiate (preferably with car experience).
> 
> Depending on your situation, it is also recommended to live close to work and do the other communing by taxi, which is inexpensive in the Philippines.


I feel that those with a healthy working pay check or large pension might agree with you but for the rest of us... Taxi's are expensive and so are trikes, haggling prices is another stressor.

These converted and upgraded trucks are (still around and for sale) from Japan are heavy duty, they are easy to work on and if there's an issue the mechanic costs are minimal, so are the parts, the cost of these vehicles run from 80,000 - 350,000 pesos and for 350,000 you can get a truck with large cab, air conditioning, hydraulic lift on the back end and a aft cabin for storing your goods with seats for business, that's an incredible price difference from buying one of those brand new small cars for 800,000 pesos with no room and always a challenge finding parts. 

I've learned so much from my neighbors and business people.


----------



## Hayseed

Cars don't seem as well optioned in the Philippines as in the states.
Automatic transmissions are harder to find, and expensive. They are better due to congestion, with the slow speeds and frequent stops. I've seen cars converted from auto to manual but can't understand why unless manuals are cheaper to repair.
If you're looking for a real cheap beater, the Philippines isn't bad because you can actually find them. But don't expect a lot of options. A $3000 car is a late-90s Sentra with 100,000 miles and a manual transmission or maybe a mid-90s Corolla.
Cheapest cars seem to be Mitsubishi's and they often have special offers. At the right time of the year you can score a good deal on a new Mirage if you can handle the small size. Wife ended up getting a loan for a Diesel-powered Mits. Aventure for about $220/mo and they give you the first years worth of insurance free. Dealer also offers oil changes and free service for a few years. Looked at similar special offers from Toyota and Hyundai but they all had higher prices. 
You can buy 1980s Mitsubishis and Fords (Mazda-based Lasers) for around 40,000 pesos but you have to inspect those real carefully. Older Kia's are cheap, too but I don't trust those.


----------



## fmartin_gila

mcalleyboy said:


> These converted and upgraded trucks are (still around and for sale) from Japan are heavy duty, they are easy to work on and if there's an issue the mechanic costs are minimal, so are the parts, the cost of these vehicles run from 80,000 - 350,000 pesos and for 350,000 you can get a truck with large cab, air conditioning, hydraulic lift on the back end and a aft cabin for storing your goods with seats for business, that's an incredible price difference from buying one of those brand new small cars for 800,000 pesos with no room and always a challenge finding parts.


Agree with this. Last year, I bought one of these. I paid 180,000 Peso's, a bit over 4,000 USDollars. Originally registered in Japan as a 2002 Mazda Scrum, now registered in the Phils as a 2014 Suzuki CarryVan. Was cut apart in Japan, shipped to Cebu and reassembled as a left hand driving vehicle(same as US & Phils). When reassembling, they take care of most all problems related to age or being worn. This vehicle, when I bought it showed 236,000 Kms on the odometer but has treated me as a new vehicle. I had one minor glitch with the fuel gauge, which they repaired under warranty. I don't know if these same remanufactured vehicles are available up in Luzon. I am very well pleased with this vehicle, it does everything I need and so far has been no problem as to upkeep of it.

Fred


----------



## lefties43332

WestieRed said:


> I've only done a tiny bit of research about buying a car but the little I've done was surprising. It appears used cars are more costly in the Philippines than in the U.S.
> 
> For example this cube type car asking price is $7,500, this is a few thousands more than I expected although the miles seem low.
> 
> Is there such a thing of a 2-3,000 dollar decent car available in the Philippines?
> 
> For more costly cars how does the loan process work for expats? Do the use a SSN number? References? Employment history?
> 
> What side of a car is the steering wheel typically on?


Nowdays theres alot of used cars in subic area,just be choosy. I would never buy a new one in phils...i always buy new here in usA. Always toyotA


----------



## Gary D

Hayseed said:


> Cars don't seem as well optioned in the Philippines as in the states.
> Automatic transmissions are harder to find, and expensive. They are better due to congestion, with the slow speeds and frequent stops. I've seen cars converted from auto to manual but can't understand why unless manuals are cheaper to repair.
> If you're looking for a real cheap beater, the Philippines isn't bad because you can actually find them. But don't expect a lot of options. A $3000 car is a late-90s Sentra with 100,000 miles and a manual transmission or maybe a mid-90s Corolla.
> Cheapest cars seem to be Mitsubishi's and they often have special offers. At the right time of the year you can score a good deal on a new Mirage if you can handle the small size. Wife ended up getting a loan for a Diesel-powered Mits. Aventure for about $220/mo and they give you the first years worth of insurance free. Dealer also offers oil changes and free service for a few years. Looked at similar special offers from Toyota and Hyundai but they all had higher prices.
> You can buy 1980s Mitsubishis and Fords (Mazda-based Lasers) for around 40,000 pesos but you have to inspect those real carefully. Older Kia's are cheap, too but I don't trust those.


Filipinos can be very set in there ways, older automatic where much heavier on fuel than manuals so nobody wants an automatic.


----------



## fmartin_gila

Phil_expat said:


> When I bought the scooter I kept asking what the price was out the door. The sales man gave me a confused look of not understanding. Unlike the USA the price includes everything with no add on. That is sales tax (VAT), registration, insurance, extended warranty (3 years) and anything else you could think of.


Last year, before I bought a vehicle, I also did some shopping around and found about the same thing. They never want to say what the total will be, all they mention is the "all in" price but that is just a down payment. I got so frustrated with trying to get info from them that most of the time I just gave up and walked away. They do not seem to be able to see the concept of "how much is the total cost". Guess that goes along with what seems to be a lack of long term thinking in this country.

Fred


----------

