Buying Repossessed Cars in the Philippines
Are you trying to purchase a new vehicle? Essentially, you have two choices: new or used. But a third, superior choice is just around the corner. For a variety of reasons, repossessed cars are worthwhile considerations. Repo cars differ from other options on the used automobile market in a variety of ways, including minimal mileage and much reduced rates.
However, for some reasons, the buying public's perception of repossessions is murky. Repo autos actually provide excellent value for what is essentially a "slightly used" vehicle. Here are the most often asked questions about repossessions and the main arguments in favor of purchasing one.
What are repossessed cars?
Because the former owners of repossessed vehicles failed to make their monthly car loan payments, the bank repossessed cars "took back" or repossessed the vehicles. When you finance a new car, the bank keeps ownership of the vehicle until the buyer has made all of the loan installments.
Until the buyer pays off the car loan, banks hold the original OR/CR (Original Receipt and Certificate of Registration) of the vehicle. The purchasers, in turn, only receive a Xerox copy of the vehicle's paperwork and will only receive the originals after making all of the loan installments.
If you wonder about the repossessed cars from banks, let's read below.
Consider purchasing a new car with a 48-month loan, for instance. Depending on the terms of your loan contract, the bank will begin the repossession process if there is a one- or two-month delay in your monthly payments. Banks and lenders may occasionally wait 90 days before accelerating the repossession process.
Additionally, the bank is quite likely to seize your prized vehicle if you have missed 90 or more consecutive monthly auto payments.
After a bank repossesses a vehicle, it is transported to adjacent warehouses for storage and safekeeping. Banks often have several warehouses located throughout the country.
Pros and cons of buying repossessed cars for sale
Purchasing a repo car can be cheaper than buying a used car at an auction, which is where many seized vehicles wind up.
Keep in mind, though, that lenders are required to sell repossessed vehicles in a "commercially reasonable way." That means the lender must sell the vehicle at fair market value in your location and follow conventional sales standards such as methods, manner, time, place, and terms of sale. So, if you ever think about repossessed cars in the Philippines, let's find out the pros and cons below.
Advantages of bank repossessed cars
#01 - It's simple to locate more recent versions that are in flawless working order.
Sure, you can purchase used cars from internet marketplaces for less money, but why risk driving an older vehicle? Repossessed vehicles often range in age from one to three years old and have minimal mileage. The point is that you may have a newer, better car without having to pay new car rates, which is advantageous for all customers.
#02 - Spend less and save more money.
The amount of money you can save by purchasing a repossession is likely one of the primary advantages. New automobiles typically lose up to 30% of their value after one or two years, and this loss begins as soon as the vehicle leaves the dealership garage.
For instance, the starting price of a 2021 Toyota Innova 2.8 E Diesel A/T is 1,355,000. However, if you choose from Philkotse selection of high-quality repo vehicles, you can purchase the identical Toyota Innova 2.8 E Diesel A/T with only 21,000 kilometers on the odometer for less than 1 million. Oh, and it has the same factory warranty as a brand-new vehicle.
#03 - Easier possibilities for financing or purchasing.
To purchase a repossession, you typically put a bid. However, Philkotse provides a selection of repossession vehicles that you can purchase right away without participating in the entire bidding procedure. Additionally, if you locate the car of your dreams, you may finance it through one of our numerous bank partners and save 30 to 50 percent off the MSRP.
#04 - No matter where you are in the Philippines, you may drive a superior car for less.
A more cost-effective option to get your dream car is to purchase a repossessed vehicle. All around the Philippines, Philkotse maintains warehouses.
Disadvantages of bank repossessed cars
There are benefits to purchasing a repo car, but there are also distinct disadvantages to be aware of. The major disadvantage is that you can't test-drive the car, but there's a good reason for it. If banks permit prospective buyers to test drive repossessed vehicles, the mileage reading will rise and negatively impact the vehicle's resale value.
#01 - The majority of repossessed cars are filthy.
And we really do mean that. Banks frequently keep hundreds of repossessed cars in various lots and warehouses, where most of them idle for weeks or months at a time. And you already know what happens when a car sits idle for a while: It gets dirty!
The grime and dust, however, are only surface-level. When examining a repossessed vehicle from Philkotse, focus more on the bodywork's state rather than the car's filthy appearance.
#02 - Test drives are not permitted.
There is a good reason why you cannot test drive a repossessed vehicle. If the cars get more miles on the odometer from client test drives, further decreasing the car's value, the banks won't be thrilled.
However, you are free to inspect the car as much as you like before buying it by starting the engine and turning on the air conditioning.
How to buy a repossessed cars from banks
When purchasing a repossession, you have two choices. To start, you can go to the bank and ask for a list of repossessed cars, then personally visit each warehouse to check out the car of your desires.
Of course, going to Philkotse will make things simple for you. To speed up the acquisition of repo cars, Philkotse has partnered with the biggest and most reputable banks in the Philippines.
Additionally, Philkotse manages numerous repossessed cars for sale in Cebu, around Metro Manila as well as other regions of Luzon, Visayas, and Davao City. Philkotse also streamlines the process of looking for repossessions from its expanding network of bank partners in the Philippines. However, some automobile purchasers can find it challenging to find the car they desire due to the wide variety of types and models that are made available each week.
Repossessed cars provide you the chance to buy an automobile that you previously believed was out of your price range if you bought it new, in addition to being a better second-hand option. Philkotse, for instance, offers a selection of 2019 Toyota Fortuner 2.4 G Diesel 4x2 models with beginning prices as low as 1,030,000 yen. For the record, the starting price for the identical vehicle when brand-new is 1,687,000. And Philkotse is the place to go if you're looking for high-quality, low-mileage, and reasonably priced Philippines repossessed cars.
