The automotive industry in the Philippines is thriving. In 2017, the industry hit a milestone with its 473,943-unit sales marking a 17.66% growth. This makes 2017 the eighth in a series of consecutive growth years. Experts credit the growth to favorable economic outlook, the release of new car models, and the upcoming tax reforms. The Philippines is currently the strongest ASEAN market, besting countries like Indonesia, Malaysia, and Thailand.
While the industry conditions say it’s a good time to buy a car, you must still put a lot of effort into the purchase. Unlike most of your other purchases, buying a car is not something you can do on impulse. There are a lot of factors to consider, such as financing options, essential features to look for, and the type of car that best suits your lifestyle. You need to stay level-headed to ensure you make practical decisions. Don’t get too caught up with details that you forget about what really matters. Instead of focusing on the body paint and audio system, make sure you have your budget and everyday needs covered. Always look at the bigger picture. To make sure you keep things in perspective, carefully follow these steps to buying a car.
Set a budget
To set a realistic budget, you need to think long term. Beyond just the down payment and the amortization, you need to take into account other expenses like insurance, maintenance costs, parking, and gas. You also need to consider the savings you will be making from having your own car. Add everything up to figure out the best monthly budget that works for you. You know you’ve figured out the right budget if you can confidently say that even after you’ve factored in your car expenses, you could still go on with life as usual.
One of the top things you need to consider is the amount of down payment you can afford to pay. The more you pay now, the less your monthly amortization will be. You also need to consider the terms. The longer your amortizations will be, the higher the interest rates that you will have to pay. On the flip side, this would also amount to lower monthly payments. Choose whichever works best for your monthly budget.
Choose a car
Now that you’ve got your budget all figured out, you can easily narrow down your search for the right car model. Beyond just your budget, your choice will be affected by your own personal needs, style, and personality. Some of the general categories you will have to choose from are Action Utility Vehicles (AUVs), Sports Utility Vehicles (SUVs), and vans. If you are a first-time buyer, a sedan may be your best option. It is light and easy to drive. It is also fuel-efficient, so you can go easy on your budget.
If safety is your priority and you are not very adept at backing up or parking, a car with parking aid sensors may be your best bet. Some people need an Anti-lock Braking System (ABS) to go with the car so they can still maneuver it even after they’ve stepped on the brakes while driving at high speed. You should also check for well-placed airbags.
Check for cool features
Once you’ve figured out your must-haves, you can have fun choosing your good-to-haves. Take a closer look at your options and check which additional features you can have with your car. You will be spending a lot of time in your car, so going for features that will add to your comfort should be worth it. A car with an insulation and AC system that can rise up to the challenges of the Manila heat will definitely be worth every dime. A spacious legroom will also be a lifesaver when you are stuck in the city’s notorious traffic. And of course, there are cutting-edge features that will make your life a lot easier, such as cars that let you start the engine and open you car door without a key. This will help you avoid accidentally leaving your keys on the ignition.
Most often than not, the daunting part of buying a car is choosing from several options. Making a decision can be hard when you are bombarded by too many alternatives. You can simplify the process by using tools online that are designed to streamline the buying experience. Now you won’t have to travel to several car stores to check your options. This will spare you the time, effort, and hassle of traveling around the metro or being pulled in a million different directions by overeager dealers. For instance, you can use the Autodeal Car Guide to learn more about available cars, compare car specifications and prices, and connect with trusted dealers from the comfort of your home. Declared by SimilarWeb as the number one automotive website in the Philippines, AutoDeal offers innovative features that will make your car-buying experience hassle-free.
Find the right financing option
Most banks provide car loans that will let you pay for your car on an installment basis. Now you won’t have to deplete your savings to own your first car. Know what to look for when choosing the right financing options. Ask for the interest rate, years to pay, and down payment amount. Remember to take your monthly budget into consideration when applying for a loan.
Note that paying for the car in full is still the best option, so make sure you take this route if you have enough cash available. More than saving huge amounts of money on interest expenses, you will also be spared the hassle of complying with documents necessary to qualify for a loan.
Comply with the requirements
Your dealer and bank will require you to comply with several requirements that will make you eligible for the car purchase. As most of the documents are intended to check your capacity to pay, they will often be related to your income and identity. Some of the key documents you will need to furnish are your Certificate of Employment, latest Income Tax Return, basic business permits for those who are unemployed, government-issued ID, and recent company pay slips.
Buying a car in the Philippines can be an easy process if you know the best way to go about it. Take advantage of available resources and online platforms that aim to make the experience convenient for you. It’s time to drive your dream car!