Here is everything anyone has to know about repossessed cars in the Philippines: what they are and the how’s and why’s of getting them. Let's look through our article on Philkotse.com to learn why some consider them options over brand new cars and second hand cars.
I. What is a repossessed car?
Most repossessed cars are those bought via bank loans or any form of loan payment, and the buyer wasn’t able to pay for the monthly premiums. Other repo-cars are also paying for other bank loans besides auto loans. More than often, these vehicles are taken by the bank and sold in auctions and other venues where they are sold at lesser cost!
Most repossessed cars are those bought via bank loans or any form of loan payment
So, they are much cheaper than newer cars and optional alternatives for some car buyers. You’ll find these cars in lots where they parked and also in second-hand car garages that bought them and resell with a higher tag price! Some Philippine banks specialize in this car trade, with a catalogue of repo cars for sale in their storage lots.
Repo-cars are cost saving but there are concerns that should be considered too!
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II. Repossessed cars for sale in the Philippines 2018/2019: Pros & Cons
1. Advantages of going for repossessed cars in PH
Despite the obvious advantages but it also comes with some negatives too. Read on and find out! They are second-hand merchandise, and they will come with some imperfections too. If lucky enough a good buy can be found but not always. The positives of repossessed cars are several and here they are.
1.1. No need for costly monthly payments and keeping up with the payments and worrying about it. No more cup noodles or any other means to save up on paying back the bank. These vehicles are relatively light on the budget and with financing if it’s an option. A brand new car will cost an arm and a leg but for most repo-cars, they come on the cheap but that depends on the model of course!
1.2. If you go to second-hand auto-marts there’s a chance that autos have several or many issues. Autos bought from banks will have fewer problems when compared to other sources. Repossessed cars embargoed by banks, not second-hand auto sale men who need to make a sale is much better to deal with! Bank repossessed cars for sale in the Philippines have less mileage, and even have newer models than those in second-hand auto marts! Some of these are in good condition and can be a gem in the rough too if anyone’s that lucky.
Autos bought from banks will have fewer problems when compared to other sources
1.3. What’s better than a cheaply bought car? It’s even better and by waiting longer; with the price slashed more and could be nearly brand-new. It can’t get any better than that and you’ll be smiling to the bank. With almost money for nothing; great deal with a new car with a slashed price that is very good deal indeed.
1.4. Banks have protocols and ensure a fair transaction when dealing with an individual seller who needs to make a sale by any means. Say yes to a bank and no to a car salesman any given day!
1.5. Bank repossessed cars here in the Philippines cost less with a one-time payment for no hassles. Auto loans will make it easier to pay in easy instalments instead of paying in full. Paperwork is a pain and repo-cars will have less and it’s done! A repo-car will take much less paperwork and it’s done!
2. Disdvantages of going for repossessed cars in PH
Now, here are some sour points that repo-cars have which can be deal-breakers.
2.1. Pre-owned means that it’s not a guarantee of a good buy because of the general maintenance and condition of the car depends on the former owner. It’s either lucky or not then make the draw or hope for a good buy!
2.2. Chance is more than one person will be interested in a certain repossessed car, and then expect to run into other bids for it. This process can be tedious but out-bid everyone; an almost-like brand new car will be yours and with less money spent! Buying a repo-car really depends on how well you bargain; determine the best options when getting it.
III. Are repossessed cars practical over brand new cars?
There several things to consider when getting a repossessed car in the Philippines and it should take seriously too. Comes on the cheap, but money spent and it is still an obligation when bank financing is involved!
1. Repo-cars will cost less and will be the best option for those the cash-strapped looking for the cheaper alternative! Those with a spotty credit record or don’t have the necessary papers, it is more negotiable and banks want to dispose of it fast!
Repo-cars will cost less and will be the best option for those the cash-strapped looking for the cheaper alternative
2. Haggling not required because these bank-owned repo-cars are already priced less! Parked in safe storage than in exposed auto-marts that anyone can walk into, with selected buyers who are interested can make an appointment. Many second-hand cars are subjected to test-drive all the time, but bank-owned cars aren't test driven often.
3. If second autos in auto-marts are possible lemons, then it isn’t most of the time with repo-cars in cold storage by banks. Models sold in by banks are recent models, not old models or refurbished cars that aren’t current anymore. If a newer model is wanted, but getting one in used auto-marts then contact a bank for way better options!
IV. Is this a good enough reason to consider a repossessed car for sale in the Philippines in 2018/2019?
Options need to be assessed and decided in favour if it is practical. Steps to take when getting a repossessed car. If the decision is final then the last steps need to be done and complete everything.
- Check what kind of repossessed car is preferred and check out the specs plus research on it.
- Contact banks and ask what they’ve got in cold storage. What needs to be processed, including how much acquiring the car.
- Check the car and bring a mechanic, then to test drive it. See what is preferred; although only minor repairs with low mileage can the only concern.
- Have everything processed and other paperwork finished, unlike brand-new cars which more processing to do!
- When all is done, pick it up after and drive it home.
Sounds really easy with a lengthy process to do, the desired car is in the garage and all is good.
V. To repo-car or not to!
Are repossessed cars for sale in the Philippines worth the trouble? They have the same issues as auto-mart second-hand cars but are they better. Repo-cars will always be available and banks will have some in cold storage somewhere for alternative buyers to decide on! Glossing over this short primer may give ideas and clear up the how’s and why’s of it. To repo or not to repo and check everything related to it. Hope you have found useful information for your car hunt on Philkotse.com. Good luck!
Are repossessed cars for sale in the Philippines worth the trouble?
Norjan Ismail Abbas